1-Kira artışlarına uygulanan ‘yüzde 25 zam sınırı’ sona ererken; yeni kira zam oranı yüzde 65,07 olarak açıklandı. Tabii bu durumda merak edilenler var. Konut kirasında yüzde 25 zam sınırı uygulaması hangi dönemi kapsıyor Gizem Hanım?
1-With the '25 percent rent increase cap' applied to rent hikes coming to an end, the new rent increase rate has been announced as 65.07 percent. Naturally, there are some questions regarding this situation. Which period does the 25 percent rent increase cap for residential rentals cover, Ms. Gizem?
Residential rents and annual increase rates have become the biggest problem for citizens over the last two years. Previously determined based on the 12-month average of the CPI (Consumer Price Index), residential rent increases were fixed during the high inflation period, and a 25 percent cap was applied for two years to protect tenants. With the temporary article added to the Turkish Code of Obligations on June 8, 2022, a 25 percent rent increase cap was introduced for residential rentals. This limitation was extended until July 1, 2024. Under this regulation, the ceiling for residential rent increase rates was limited to 25 percent.
2-How will the rent increase be calculated?
According to the same rate of the previous year: Rent increases are calculated based on the rate of change in the D-PPI or CPI compared to the same month of the previous year. 12-month average: The monthly averages of the 12-month CPI and D-PPI are added together and divided by 2. The rent increase is calculated based on the result. In the new period, rent increases are determined according to the CPI rate. How the rent increase calculation based on CPI will be done is a matter of curiosity. The 25 percent rent increase rate has been abolished for contracts signed after 01.07.2024. According to the new CPI rate announced on 03.07.2024, the July 2024 rent increase rate is 65.07 percent, so the rent amount will be increased by calculating it over this rate.
3-Can an increase above the CPI average be requested?
The generally accepted increase rate in rent contracts made by tenants and landlords is the D-PPI/CPI practice. Although the parties may agree in the rent contract that they will make an increase at the D-PPI/CPI rate, landlords sometimes do not comply with the rent contract and demand a rent increase above the D-PPI/CPI rate. However, this is legally invalid. At this point, the base increase rate for the tenant is the 12-month average of the CPI.
4-What will happen to consumers who increased their rent before July?
For rent contracts renewed from May to May, the 25% cap in effect at that time was applied to the increase. However, landlords regarding the 25% rent increase rate abolished as of July 1 will have to wait until April 2025 for a new increase period at this point.
5-Is it possible for tenants who made an increase before July 2 to be asked for the difference or a different increase after July 2?
A residential tenant who made a 25 percent rent increase on any date before July 1 is not obliged to make an additional rent hike or a difference increase after July 1. For these tenants, the next year will be awaited, and when their renewal period arrives, they will make their increases within the scope of the 12-month CPI average during their renewal period.
6-Can a fixed rent increase rate be determined in contracts?
Of course, parties, tenants, and landlords can agree on an increase over a fixed rent amount with a rent contract for the rented property. In our law, the 12-month CPI average is the upper limit for generally accepted residential rent hikes. It is possible to determine a rate that does not exceed this. However, any demand that exceeds this is invalid.
7-How will the rent increase be applied for those whose litigation process is ongoing?
As you know, a mediation process was introduced for rent disputes as of September 1. Dispute cases and mediation processes between landlords and tenants are ongoing. Tenants in this situation will also apply the current rate when their rent increase period arrives.
8-Under what conditions can a landlord request a rent increase?
As regulated in the relevant articles of the Turkish Code of Obligations, landlords cannot demand a high increase by making a rent increase above the D-PPI/CPI rate until the 5th year of the rent contract is completed. However, after the 5th year of the rent contract is completed, the landlord has the right to file a rent determination lawsuit. At this point, landlords must initiate the mediation process before filing a rent increase lawsuit. Subsequently, if an agreement cannot be reached during the mediation period, the filing of a rent increase lawsuit will be a matter for the landlords.
9-What kind of process awaits rent disputes?
The obligation to apply to a mediator before filing a lawsuit in rent disputes began on September 1, 2023. Except for eviction via enforcement without a verdict, an obligation to apply to a mediator first was introduced for all disputes arising from rent disagreements. If an agreement cannot be reached between the parties during the mediation process, various lawsuits, including rent increase lawsuits and eviction lawsuits, can be filed at this stage.
10-How will the practice be for workplace rentals?
As it is known, there has been no rent increase cap applied to workplaces. Rent increases will continue to be made at the CPI average, as in the past.
11-What should be done if the landlord wants to make a higher increase than the legal rent increase rate?
Home (residential) or workplace owners have recently started to make exorbitant rent hikes on the real estate they own and rent out, especially in the period starting after the pandemic, and this situation is increasingly being normalized and attempted to be made compatible with the ordinary flow of life. However, in accordance with the relevant articles of the Code of Obligations, the provisions regarding rent contracts are largely regulated to support tenants and protect their rights. With the temporary article added to the Code of Obligations, the rent increase rate was set at only 25% until July 1, 2023, only for homes, i.e., residences, and this date was extended until July 1, 2024. The rent increase practice at the CPI rate, which continues to be applied in workplaces, is not applied in residences, and this rate is fixed at 25%.
Based on these regulations, we can say that when home (residential) owners want to increase rent too much, there is no obstacle for tenants to keep this rate fixed at 25% and not accept exorbitant hikes. If rent contracts have not completed 5 years, landlords will not be able to increase more than 25%. However, in rent contracts exceeding five years, it is possible to make an increase over the current market value within the framework of the opportunity granted by the Code of Obligations.
If home (residential) owners want to make exorbitant hikes, tenants should continue their payments by making an increase at the legal (25%) rate, and if the landlord does not accept this, they must file a rent determination lawsuit.
12-What can be done if the difference between the rent amount and the actual market rent has increased significantly?
If there is a large increase in the difference between the rent amount and the actual market rent, the landlord has the right to file a rent determination lawsuit against a tenant who has completed 5 years. A rent determination lawsuit is a type of lawsuit that can be filed in rent contracts that have completed 5 years, in cases where the rent amount remains well below the equivalent rent amounts. By filing this lawsuit, the landlord can request that the current rent amount be re-determined by the court. In a rent determination lawsuit, the court will determine the new rent amount based on equivalent rent amounts, the condition of the residence, equity, and the CPI rate. However, the judge is not bound by the CPI rate and the 25% regulation. Therefore, it is possible to rule on an increase higher than the CPI rate. The Court of Cassation, in a decision regarding a rent determination lawsuit, ruled that the rent amounts of similar residences should be investigated and the reasons that would affect the rent amount should be taken into account.
13-Thank you for the information you provided. Finally, what would you like to say?
First of all, thank you very much for the beautiful questions you prepared regarding rent law. In rent cases, which are one of the most frequently filed lawsuit types in Turkey recently, with the removal of the 25% rent increase cap applied to residences, the old order has returned. This, of course, causes new legal problems to arise. We will try to follow the legal process with the decisions that emerge in practice and the established jurisprudence of the Court of Cassation. Tenants should definitely take care to pay their rent amounts on time and take good care of the rented property. Landlords have the right to make a rent increase at the D-PPI/CPI rate regarding rent increase amounts. For tenants who have completed 5 years, landlords can choose to file a lawsuit to increase the rent amount.