How to Notify Your Tenant of the CPI Increase in 2026: Certified Email

Updating Your Rental Income: The CPI and Legal Communication with Your Tenant

Updating rental income based on the Consumer Price Index (CPI) is a common practice and, in many cases, legally established in lease agreements. However, the manner in which this update is communicated to the tenant is crucial to avoid misunderstandings, disputes, and, most importantly, to ensure the process is legally valid. In this article, we will guide you step-by-step on how to effectively and securely notify your tenant of a CPI rent increase, with a particular emphasis on the utility of certified email as a fundamental tool.

When Can Rent Be Updated Based on the CPI?

Before proceeding with the notification, it is essential to review your lease agreement. Most contracts stipulate the possibility of updating the rent annually, with the CPI being the most common reference for this adjustment. It is important to consider the following:

• Update Clause: Ensure your contract includes a specific clause that permits rent updates and mentions the CPI as the reference index.
• Frequency: The update is typically annual. The key date will be the contract's anniversary date.
• Reference Index: Verify which month and year's CPI is used as a reference. Most commonly, it's the CPI from the month the contract anniversary falls or the month preceding the update. The Urban Leases Law (LAU) has undergone modifications, making it vital to consult current legislation and your specific contract.
• Limits: In certain periods, the law may have established maximum limits for CPI increases to protect tenants. Inform yourself about the current regulations.

The Step-by-Step Process for Notifying a CPI Rent Increase

Once you have determined that it is time to update the rent and have calculated the new amount, the next step is to communicate this to your tenant. The key lies in clarity, advance notice, and, above all, proof that the notification has been made.

1. Accurate Calculation of the New Rent

The first step is to correctly calculate the new rent. If the contract indicates that it will be updated using the year-on-year CPI for a specific month, you will need to find this data from the National Statistics Institute (INE) or official sources. For example, if the current rent is €800 and the reference CPI has risen by 3%, the new rent would be:

New Rent = Current Rent + (Current Rent * CPI Percentage / 100)

⚖️In our example: €800 + (€800 * 3 / 100) = €800 + €24 = €824.

2. Drafting the Notification

The notification should be clear, concise, and professional. It must include the following information:

• Your details as the landlord and the tenant's details.
• The address of the leased property.
• The date of the notification.
• Reference to the contract clause regarding rent updates.
• The reference index used (month and year of the CPI).
• The update percentage applied.
• A detailed calculation of the new rent.
• The date from which the new rent will be effective (typically, the first day of the month following the contract anniversary).
• The new monthly amount to be paid.
• A cordial tone and an offer to address any queries.

3. The Moment of Truth: Secure and Legal Communication

This is where the importance of a communication method offering legal guarantees comes into play. While a regular email or verbal communication may seem sufficient, they do not provide irrefutable proof that the tenant has received the notification and its content. In the event of a dispute, you would find yourself in a vulnerable position.

The Definitive Solution: Certified Email

Certified email is an increasingly used and recommended tool due to its effectiveness and legal validity. It functions like a digital registered letter, providing irrefutable evidence that an email has been sent, received, and, in some cases, read by the recipient.

How Does Certified Email Work?

A certified email service, through a specialized platform, generates a digital certificate that acts as legal proof. This certificate typically includes:

• The identity of the sender and recipient.
• The exact date and time of sending.
• The exact date and time of receipt (and in some cases, opening).
• The precise content of the message sent.
• An electronic signature that guarantees the integrity of the content and the sender's identity.

Advantages of Certified Email for Notifying CPI Increases:

Using certified email to notify your tenant of a Consumer Price Index (CPI) increase offers multiple benefits:

• Unequivocal Legal Proof: You have irrefutable evidence that the notification was sent and received, which is fundamental if any disagreement arises regarding the rent increase or if the tenant claims not to have been informed.
• Legal Security: It protects you against potential claims or litigation, as the issued certificate has legal validity and can be presented as evidence in court.
• Efficiency and Speed: It is a much faster and more economical method than traditional registered mail (burofax), allowing communication to be completed within minutes.
• Detailed Record: You retain a complete record of all communications, facilitating the management of your rental properties.
• Professionalism: It demonstrates seriousness and formality in your management as a landlord.

How to Use Certified Email in Practice:

The process is straightforward:

1. Choose a Provider: Research and select a trusted certified email service. Several options are available in the market.
2. Draft Your Email: Write the email with the notification of the CPI increase, ensuring you include all the required information mentioned previously.
3. Send via the Platform: Upload your email to the certified email service's platform. They will handle sending it and generating the corresponding certificate.
4. Save the Certificate: Once sending and receipt are confirmed, the service will provide you with the certificate. Save it in a secure location along with your rental agreement.

Additional Considerations and Best Practices

In addition to formal communication, consider these points:

• Advance Notice: Try to notify as far in advance as possible, even if the contract only requires one month. This fosters a good relationship with the tenant.
• Dialogue: Although the notification is formal, maintain an open attitude towards dialogue. If the tenant has questions about the CPI calculation or application, explain it kindly.
• Documentation: Keep copies of all contracts, communications, and certificates. Good organization is key.
• Current Legislation: Rental laws can change. Stay informed about the current regulations in your autonomous community and at the state level.

In summary, updating your rental rate according to the CPI is a process that requires precision and, above all, legally sound communication. Certified email emerges as the ideal solution to ensure your notifications have validity and offer you the legal security you need as a landlord. By following these steps and utilizing the appropriate tools, you can manage your rentals efficiently and without surprises.