One Lawyers opinion on the subject – Source: GazetteMemur

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While the fact that the 25 percent rent limit in residences will not be extended makes tenants think, lawyer Ali Onar said that tenants should not panic and that landlords cannot make increases as they wish. Lawyer Onar stated that the ceiling increase will be determined according to the annual inflation average, as before, and said, “Increases such as 100 percent, 200 percent cannot be made.”

The 25 percent increase limit on rent increases is expected to end as of July 2024. The fact that the 25 percent increase limit will not be extended makes some citizens think, “Can landlords increase rents exorbitantly?” brought up the question.

Ali Onar, a lawyer living in Izmir, also explained what awaits tenants after the 25 percent limit is lifted.

Ali Onar stated that citizens should not panic and said that homeowners cannot raise prices as they wish.

Increases will now be made according to inflation as before

Onar explained that the rent ceiling increase rate is included in the Code of Obligations and that the increase rate will be determined according to the annual inflation average (CPI) as before.

Ali Onar said, “With an article added to the temporary article of the Code of Obligations, the rent ceiling increase rate was determined as 25 percent. If no legal regulation is made, the 25 percent ceiling rate will end as of July 2024. Essentially, there is a ‘ceiling application’ in our Code of Obligations for determining rental prices. What does this mean? There is a rent increase rate in our Code of Obligations to establish a balance and determine a reasonable rental price; In other words, in daily terms, the 12-month average of inflation will be taken. The first criterion to be checked for a tenant whose lease agreement ends in July is the 12-month inflation average, if there is no provision in the lease agreement. It is predicted to be a figure of approximately 70.9 percent. “It will not be possible to overcome this,” he said.

“Even if the parties have determined a rent increase percentage, this agreement will not be valid.”

Ali Onar said, “If the price for increasing the rent has not been determined between the parties, it will be determined by the 12-month average,” and emphasized that the inflation rate will be taken into account in a case between the prospective tenant and the landlord.

Onar said, “Since the monthly and annual inflation amount announced by the Central Bank is announced on a monthly basis, the rent price determined will also be related to this. If the 12-month average of July 2024 is announced as 79 percent, the rent ceiling amount can be increased by 79 percent. Let me just point out this; Even if the parties have determined a rent increase percentage among themselves, this agreement will not be valid. In case of any case, the court will decide by taking into account the ceiling amount. “The law wants to ensure a reasonable balance between the tenant and the landlord,” he said

“Ceiling increases will not be taken into account after 5 years”

Drawing attention to lease agreements of 5 years or more, lawyer Ali Onar said, “There is no such ceiling amount in agreements that have exceeded 5 years. Therefore, after 5 years, the rental fee may increase regardless of the ceiling amount. “This is of course a situation in favor of the lessor,” he said.

“Homeowners will not be able to make arbitrary increases. They cannot make increases such as 100 percent, 200 percent. Even if there is such a provision in the lease agreements, this cannot be the case. A ceiling amount has been set. Increases exceeding this ceiling amount are invalid. Therefore, the protection of the tenant is in question here. “If the tenant takes legal action, he/she will have the right to request the application of the increase price stipulated by law.”

Lastly, lawyer Ali Onar added that rents must be paid through banks, with a “rent” statement written. Source: GazetteMemur

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