Breaking News: Is There An Upper Limit On Rent Increases? Limited To 5 Years
WHAT IS THE UPPER LIMIT ON RENT INCREASES BY TURKISH LAW
Rental prices have risen considerably recently. The upper limit on the rent that can be claimed for a residence is, in principle, absent. But it can still be considered that there is an upper limit on rent. He, in turn, comes across as reasons for excessive use of morality or public order in articles 27 and 28 of the Turkish Code of Obligations. Here are the details...
The recent rise in housing rents in the property market has caught everyone's attention. There was a rapid and vertical rise in rent prices, which moved slowly and horizontally.
I think there are three main reasons for this. First, with the transition of universities to coeducational education, a great mobility began to be observed on the front of university students.
Considering that the number of students enrolled in universities in 2020 is about 7 million 940 thousand, the fact that a large number of students are looking for a rental house, except for those who stay in dormitories and those who go to university in the city where they live, has increased the demand for a rental house.
DEMAND FOR RENTAL HOUSING IN TURKEY RISES
Second, economic growth of 21.7 percent in the second quarter of 2021 increased the need for skilled labor, and new hiring in different regions also increased demand for rental housing.
Third, long-distance mobility between migrants.Dec. And fourthly, the period of the pandemic relatively less stringent measures pass, the overtime is free to live in Turkey to come out in days 15 days 1 month condo foreigners who choose to live in countries subject to a curfew prefer to rent instead of buying.
But those looking for a rental are not interested in the reasons why rents are rising. They are interested in the ratio of the rent they will pay to their monthly income. Ideally, a person should devote a third of their monthly income to paying rent, and live with the rest.
LAWS CODE OF OBLIGATIONS
In principle, there is no upper limit on the rent that can legally be claimed for a residence. Each owner can rent his or her residence until he or she is ready to pay his or her own rent. When a rental price above the average rent market is requested, the tenant cannot find it.
I haven't encountered such a legal event yet, but I still think there is an upper limit to the rental price. It is also a violation of morality or public order in articles 27 and 28 of the Turkish Code of Obligations, formerly called gabin, are reasons for excessive use.
If the rental price is too high to constitute immorality in the current market average rent, I believe that the lessee can pay the current average rent price instead of paying the rental price written in the contract. This is the case when making a contract with a rental price of 10 thousand TL for a house whose average rental price can be 1000 TL. In my opinion, such a rental price also constitutes an abuse of the right to housing, which is a constitutional need, in a way that disrupts public order.
Of course, excessive injury, which indicates an excessive disproportion between counter-acts in a contract, can also justify paying the rental price in a lease contract by decoupling it to the current market rate. Imagine, if a house whose average rent can be 1000 TL is rented for 10 thousand TL, don't you think the renter here has an excessive benefit? In my opinion, the upper limit of the rental price is created by these rules in TBK Md 27 and 28.
WHAT ABOUT THE AMOUNT OF INCREASE?
The increase in the rental market should not worry tenants who are still sitting on rent. Let them be comfortable. Because the TBK Md 344 rule accepts tenants as consumers and considers rent growth valid, provided that it does not exceed the rate of change compared to the twelve-month averages in the Consumer Price Index in the previous rental year.
TBK Md 344, even if a rent increase of more than the Consumer Price Index average for the past two months is written into the contract, this is prohibited. More precisely, I apply it as a CPI, he says. Even if a higher or different rate is written in the contract, such as the inflation rate, the increase in foreign currency or gold prices, rent can still be increased as much as the 12-month consumer price index.
Even if the landlord demands a higher increase, it is enough to increase your payments according to the Consumer Price Index. You are not in breach of contract and therefore there is no reason for eviction.
Even if average rents in the rental area have increased by 30 percent, as of July 2021, the 12-month CPI average is 15.15, the rent can also be increased by this much. A legal result that the lessor will endure. If average rents increase less than the CPI rate, the tenant has to endure it, although this is against the tenant.
If anything is written about an increase to the contract, the lease, the lease of the previous year in the Consumer Price Index does not exceed a twelve month average, based on consideration of the judge on condition that is determined by the status of the loans by equity. Even if nothing is written in the contract related to the increase, the judge decides on the increase.
But the judge is also not free on this issue. It cannot decide on a rent increase above the twelve-month CPI rate. Even if rents have increased twice the CPI rate in that area.
ATTENTION TO THE 5-YEAR PERIOD
Let's say that even though your 1-year lease has expired, you do not agree with the landlord, you continue to sit down. Your lease has become indefinite. Here is your right to increase your annual rent according to the CPI average, limited to 5 years.
At the end of the fifth year, the landlord can apply to the court and ask the judge to determine the rental price to be applied in the new lease year. The judge determines the rate of change in the Consumer Price Index according to the twelve-month averages in accordance with fairness, taking into account the situation of the lessor and the precedent rent prices.
Then we can say this. At the end of five years, the rent increase can be raised by a court decision to coincide with the market average. After? Then again, another five years can only be increased until the CPI rate.
As a result, the rent increase system in ongoing rents is as follows; the first five years can be increased by the maximum annual CPI average. After that, if the rental price remains below the market average, it can be increased by the judge's decision to match the market average. In continuing years again only up to the CPI average. This can be repeated every five years. If the landlord does not apply to the court at the end of the fifth year and request a rent increase, the increase is enough to increase the CPI average again.