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How can a landlord increase the rent under a contract?

With a social contract, the landlord can only raise the rent by the level of annual inflation.

Housing and rent

Answer

Under a social contract, the landlord can raise the rent only in line with annual inflation. If the contract is for three years or more, the rent is described as fixed by the terms of the contract.

With a one-year lease, the rent may be higher than under a contract for three years or more. Therefore, the contract term affects not only the stability of the tenancy, but also how the parties assess risks and future payment changes.

Before signing, look for the currency, review date, index or escalation rule, and breakdown of additional costs in the contract. An oral promise “not to raise the price” does not replace a clear clause explaining when and on what basis the amount of rent and related housing payments in Uruguay will change.

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