Millions of tenants in Turkey are concerned about the very rapid growth of rents. Recall that in order to somehow regulate this process and protect tenants, last year the authorities imposed a restriction on its increase. Accordingly, from July 1, 2022 to July 1, 2023, this is a maximum of 25%, however, there was a restriction only for residential real estate and only for prolonged one-year contracts.
There are three months left until the "date H". Will this "limit" be canceled?
After July 1, as before the restriction, the "average 12-month Consumer Price Index" announced by the Turkish Statistical Institute will be taken into account. For example, according to the latest data (based on February inflation), this figure was 71.83%. Let's say the monthly amount for renting an apartment is 3,000 TL or 5,000 TL.
If there were no 25% limit on rent increases, if the contract was extended for another year, instead of 3,000 TL, the new amount would be 5,155 TL, and instead of the previous 5,000 TL – 8,591 TL. With a 25% limit, this will be a much smaller amount: 3,750 TL and 6,250 TL, respectively.
Recall that it is prohibited to evict tenants at the request of the homeowner, except in cases when he or his relatives began to need these apartments or houses. However, in this case, he will not be able to rent residential real estate for 3 years.
However, there is a clarification: for tenants who have already lived in the same housing for 10 years, termination of the contract unilaterally – by the landlord - can be requested without explanation, and without sanctions to the owner.
Also, the lease agreement can be terminated without penalty by the tenant, if the building is considered risky.
Otherwise, everyone is waiting for July 1, 2023 to clarify whether the authorities will prolong the 25% limit on rent increases.