The formula to calculate the percent increase in rent is:
\(\%R = \frac{RF - RI}{RI} \times 100\)
Where:
A rent increase is defined as a percentage increase in rent over a certain time period, most often a year.
Example 1:
Calculation:
\(\%R = \frac{1200 - 1000}{1000} \times 100 = \frac{200}{1000} \times 100 = 0.2 \times 100 = 20\%\)
Example 2:
Calculation:
\(\%R = \frac{1800 - 1500}{1500} \times 100 = \frac{300}{1500} \times 100 = 0.2 \times 100 = 20\%\)