1. What is CPI Rent Review?

CPI (Consumer Price Index) Rent Review is a method for adjusting rental prices based on inflation. It ensures that rental income maintains its purchasing power over time by linking rent increases to changes in the cost of living.

2. How Does the Calculator Work?

The calculator uses the CPI Rent Review formula:

Where:

• Current Rent — The existing rental amount
• CPI Rate — The percentage increase based on Consumer Price Index

Explanation: The calculation applies the CPI percentage increase to the current rent to determine the new adjusted rent amount.

3. Importance of CPI Rent Adjustment

Details: CPI-based rent adjustments help maintain fair rental prices that reflect economic conditions, protecting both landlords and tenants from extreme fluctuations in purchasing power.

4. Using the Calculator

Tips: Enter current rent in dollars and CPI rate as a percentage (e.g., enter 3.5 for 3.5%). Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: How often should CPI rent reviews occur?
A: Typically annually, but this depends on the lease agreement terms.

Q2: Where can I find the current CPI rate?
A: Official CPI rates are published by government statistical agencies.

Q3: Can CPI decreases reduce rent?
A: Some leases allow for downward adjustments, but many have clauses preventing rent decreases.

Q4: Are there alternatives to CPI rent reviews?
A: Yes, some leases use fixed percentage increases or market-based reviews.

Q5: Is CPI the same in all locations?
A: No, some regions publish local CPI figures that may differ from national averages.