1. What is the RTB Rent Increase Calculation?

The RTB (Residential Tenancies Board) rent increase calculation determines the maximum allowable rent increase based on the Harmonised Index of Consumer Prices (HICP) and additional exemptions as permitted by law. The increase is capped at 2% or the HICP rate, whichever is lower.

2. How Does the Calculator Work?

The calculator uses the RTB rent increase formula:

Where:

• \( \text{Current Rent} \) — The existing rent amount in euros
• \( \text{HICP Increase Rate} \) — Annual percentage increase in the Harmonised Index of Consumer Prices
• \( \text{Additional Exemptions} \) — Any additional permitted exemptions in euros
• \( 0.02 \) — The 2% cap on rent increases

Explanation: The calculation ensures rent increases don't exceed the legal maximum while accounting for any additional permitted exemptions.

3. Importance of Rent Increase Calculation

Details: Accurate rent increase calculation is crucial for both landlords and tenants to ensure compliance with rental laws and to maintain fair housing practices.

4. Using the Calculator

Tips: Enter current rent in euros, HICP increase rate as a percentage, and any additional exemptions in euros. All values must be valid (rent > 0, HICP rate ≥ 0).

5. Frequently Asked Questions (FAQ)

Q1: What is the HICP rate?
A: The Harmonised Index of Consumer Prices measures inflation across the Eurozone and is used as a benchmark for allowable rent increases.

Q2: Why is there a 2% cap?
A: The 2% cap prevents excessive rent increases that could make housing unaffordable, while still allowing landlords reasonable increases.

Q3: What are additional exemptions?
A: These are specific circumstances (like property improvements) that may allow for additional rent increases beyond the HICP-based calculation.

Q4: How often can rent be increased?
A: Typically, rent can only be increased once per year, but local regulations may vary.

Q5: Is this calculation valid everywhere?
A: This follows general RTB guidelines, but local regulations may have additional rules or different caps.