How does the annual rent adjustment work?

Short answer: The annual adjustment can only be applied after 12 months of the lease and uses the index defined in the contract — usually IGP-M or IPCA (Brazilian inflation indices). In 2025, cumulative IGP-M was -1.05% (deflation), while IPCA came in at roughly 4.46%.

What the annual rent adjustment is

The adjustment is the legal mechanism that updates the rent for inflation, provided for in the Tenancy Law (Law 8.245/91, art. 18). After 12 months, the rent can be adjusted using the index agreed to in the contract. The index cannot be changed unilaterally during the lease term.

The two most commonly used indices in Florianópolis:

• IGP-M (FGV): tracks wholesale, retail, and construction prices. More volatile — 2025 cumulative: -1.05% (deflation).
• IPCA (IBGE): measures consumer inflation. More stable — 2025 cumulative: ~4.46%. Trending upward in new contracts.

How it works in practice

1. Check the index in the contract: the adjustment clause states which index applies and the reference period (usually the 12 months ending the month before the anniversary).
2. Calculate it: New rent = current rent × (1 + index variation). Example: R$ 2,000 × (1 + 4.46%) = R$ 2,089.20.
3. Automatic update: Regente updates the invoice on the contract’s anniversary date.
4. Negative IGP-M: when the index is deflationary, the rent cannot be adjusted upward using that index — it either stays the same or a 0% adjustment applies, depending on the contract’s wording.
5. Questions: contact Regente’s finance department before the anniversary date.

Practical example in Florianópolis

A lease that started in April 2024, with rent of R$ 2,000, using the IPCA index. Cumulative IPCA from April 2024 to March 2025: ~5.48% (IBGE). New rent in April 2025: R$ 2,109.60. If it had used IGP-M (-1.05%) instead: rent stays at R$ 2,000 — no adjustment, since the index was negative.

Related questions

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Need help? Talk to a Regente agent.