Landlords Will No Longer Be Able to Increase Rents

The 25% Limit on Rent Increase is Lifted: Tenants Should Not Panic

The expiration of the 25% rent increase limit for residential buildings in July 2024 is causing concern among tenants. However, CEESS Global officials emphasize that tenants should not panic and landlords cannot make arbitrary increases. In the statement made on the subject, “Increases such as 100 percent, 200 percent cannot be made. Even if there is such a provision in the lease agreements, this agreement is invalid. The law wants to ensure a reasonable balance between the tenant and the landlord."

Can Landlords Make Exorbitant Increases?

The 25% limit on rent increases is expected to expire as of July 2024. This situation has raised the question among some citizens, “Can landlords make exorbitant increases in rents?” CEESS Global stated that tenants should not panic and said that landlords cannot raise rents according to their heads.

Increases will be made according to the old regulations

CEESS Global officials stated 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 as before. "With an article added to the temporary article of the Code of Obligations, the rent ceiling increase rate was set at 25%. If no legal arrangement is made, the ceiling rate of 25% will end as of July 2024. In the Code of Obligations, there is a 'ceiling application' for determining rental prices. The 12-month average of annual inflation will be taken. For a tenant whose lease expires in July, the first criterion to be looked at will be the 12-month inflation average. It is expected to be approximately 70.9%. It will not be possible to exceed this."

Even if the Parties Determine the Rent Increase Percentage, It Will Not Be Valid

Officials said, “If the parties have not agreed on a rent increase, this will be determined by a 12-month average. In a case between a possible tenant and landlord, the inflation rate will be taken into account." Since the monthly and annual inflation rate announced by the Central Bank is announced on a monthly basis, the rent determined will also be related to this. If the 12-month average for July 2024 is 79%, the rent ceiling can be increased by 79%. In case of a lawsuit, the court will take the ceiling amount into consideration.

After 5 Years, Ceiling Increases Are Not Considered

CEESS Global drew attention to lease contracts of 5 years or more and said, “There is no such ceiling amount in contracts that have completed 5 years. Therefore, after 5 years, the rent may increase regardless of the ceiling amount. This is of course a situation in favor of the lessor."

Finally, it was emphasized that rents must be deposited through banks by writing “rent” explanation.

CEESS Global