How Rent Rises Over Five Years
In month twelve, an envelope arrived from the landlord.
Picture a couple named Faye and Rex, 65 and 68. They rent a one-bedroom apartment abroad at US$900 a month. Their first year was easy. Faye kept the lease in a blue folder next to the coffee tin.
In month twelve, an envelope arrived from the landlord. Faye opened it at the table with Rex reading over her shoulder. The letter said the rent would go up next month.
"By how much?" Rex asked.
"It does not say a number yet," Faye said. "It says there will be one."
For an hour they both pictured the worst. Then Faye did what she does with receipts. She wrote the next five years in a column.
Two illustrations follow. The first assumes rent rises 3% a year. The second assumes 5%.
| Year | 3% a year: monthly rent | 5% a year: monthly rent |
|---|---|---|
| 1 | US$900 | US$900 |
| 2 | US$927 | US$945 |
| 3 | US$955 | US$992 |
| 4 | US$983 | US$1,042 |
| 5 | US$1,013 | US$1,094 |
Over five years, the twelve-month totals add up to about US$57,300 at 3% and US$59,700 at 5%. With no rise at all, five years would be US$54,000. The difference between the two paths is about US$2,300.
Rex looked at the 5% column. "By year five, we pay almost US$200 more a month than we do now."
"And at 3%, about US$110 more," Faye said.
The landlord had reasons of his own. His costs may have gone up, and he did not know whether Faye and Rex planned to stay. A short letter from them asking for the number and the rule behind it might be easy for him to answer.
Rules differ by country. In Spain, for newer leases, the yearly rise is tied to a published index, most recently 2.44%. In Portugal, the legal coefficient for 2026 is 2.24%, and in 2024 it was 6.94%. In Colombia, the 2026 maximum is 5.1%. The limit itself can change a lot from one year to the next.
You could…
- Ask the landlord whether the lease names a yearly rise, and what it is tied to.
- Ask a local lawyer whether your country has a limit.
- Write your own five-year column before you sign for year two.
What was the first rent letter you ever received abroad? Send it in through the comments. Someone reading may be about to open theirs.
Figures are estimates for planning, based on public data.
Sources: official yearly rent-update indexes published for Spain, Portugal and Colombia. A local lawyer could confirm the rule that applies to your lease.
Tell us in the comments