The 25% maximum limit for rent increases during the prolongation of long-term contracts was extended for another year.
This measure was introduced in the summer of 2022, and was supposed to end on July 1, 2023; nevertheless, the extension of such a "limit" has been actively discussed in recent months.
It is now valid until July 2, 2024.
Unfortunately, this does not solve the problems of the entire sector: Hakan Akdogan, president of the Association of Real Estate Consultants (TÜGEM), said that many owners are not ready to put up with such restrictions, because they expected to raise rates accordingly to inflation. As a result, they are trying in every possible way to evict the tenant; some even put their real estate up for sale in order to have a legal opportunity to get rid of tenants. More recently, a new "life hack" has appeared: owners quietly close bank accounts where rent payments were received in order to accuse tenants of allegedly arrears.
I must say that the 25% limit can be exceeded not only when concluding new lease agreements, but also when extending old ones - if both parties (both the owner and the tenant) have found a compromise and agreed on some price. So, many agree to an increase of up to 50%; and sometimes the issue can be settled in this way.
Lawyers also remind that after 5 years of continuous lease, the landlord – if the tenant does not agree to "sit down at the negotiating table" - has the right to file a lawsuit to recalculate the rate, not limited to 25%: after all, the situation with prices in Turkey has changed dramatically for obvious reasons over the five-year period.
The other day we wrote that housing rental issues - documents, calculations, etc. are gradually being transferred to an electronic format, for greater transparency.