1. What is RPI Rent Increase?

The Retail Price Index (RPI) is a measure of inflation used to calculate rent increases in some leases. This calculator helps determine how much rent should increase based on the RPI percentage.

2. How Does the Calculator Work?

The calculator uses the RPI rent increase formula:

Where:

• \( RPI \) — Retail Price Index (inflation rate percentage)
• \( Current Rent \) — The current monthly rent amount

Explanation: The RPI percentage is applied to the current rent to calculate the increase amount, which is then added to the current rent to determine the new rent.

3. Importance of RPI Rent Reviews

Details: RPI-based rent reviews provide a transparent, inflation-linked method for adjusting rents over time, helping maintain the real value of rental income for landlords while providing predictable increases for tenants.

4. Using the Calculator

Tips: Enter the current RPI percentage (e.g., 3.5 for 3.5%) and the current monthly rent amount. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between RPI and CPI?
A: RPI (Retail Price Index) and CPI (Consumer Price Index) are both measures of inflation, but RPI typically includes housing costs and tends to be higher than CPI.

Q2: How often are RPI rent reviews conducted?
A: This depends on the lease terms, but typically every 1-5 years. Many commercial leases specify RPI-based annual increases.

Q3: Can RPI increases be capped?
A: Yes, some leases include caps (maximum increases) or collars (minimum increases) to limit volatility in rent adjustments.

Q4: Is RPI still commonly used for rent reviews?
A: While still used, many newer leases are switching to CPI as it's generally considered a more accurate inflation measure.

Q5: How is RPI calculated?
A: RPI tracks changes in the cost of a fixed basket of retail goods and services, weighted by their importance in typical household spending.