Even if the 25 percent rent limit is lifted, landlords will not be able to increase as they wish.

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. Even if there is such a provision in the lease agreements, this agreement is invalid. A ceiling amount has been determined. The law provides for a reasonable agreement between the tenant and the landlord.” “He wants to achieve balance,” he said.

CAN HOMEOWNERS INCREASE EXORBITATIVE INCREASES IN RENTS?

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. Lawyer Ali Onar, who lives 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 IN THE 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, 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, in our Code of Obligations, the rent ceiling increase rate has been determined as 25 percent. There is a ‘ceiling application’ to determine the rent. What does this mean? There is a rent increase rate in our Code of Obligations to establish a balance; in other words, the 12-month average of inflation will be taken for a tenant whose lease expires in July. “The first criterion to be looked at is that if there is no provision in the lease agreement, the 12-month inflation average will be taken, and it will not be possible to exceed this,” he said.

“THIS CONTRACT WILL NOT BE VALID EVEN IF THE PARTIES HAVE DETERMINED THE RENTAL INCREASE PERCENTAGE”

“If the price for increasing the rent has not been determined between the parties, it will be determined by the 12-month average,” said Ali Onar, emphasizing 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 immediately state 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.”

“CEILING INCREASES WILL NOT BE CONSIDERED AFTER 5 YEARS”

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

Onar continued as follows: “Landlords 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 is out of the question. A ceiling amount has been determined. Increases exceeding this ceiling amount are invalid. Therefore, here the tenant’s “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.