What is rent?
It is the giving of a dwelling, a property or anything such as a vehicle by the owner to someone else for a period of time, for a certain price.
What is a rent increase?
It is usually an update to the price to be paid in the new period with the renewal of the contract each year, usually in order to protect the rent against inflation or to reflect the increase in the value of the rented thing to the rent.
According to what is the rent increase made?
There are different legal regulations when raising prices in residences and workplaces. While a legal limit was introduced on the rate of increase in houses, the rate of increase in workplaces was released and allowed to be determined according to the contract to be made between the parties.
How is the rent increase rate calculated?
The rate of increase for houses is calculated by looking at the rate of change according to the CPI 12-month averages announced by TURKSTAT in the month before the month in which the increase will be made. The owner has the right to raise at a rate equal to or less than this rate. For example, if the hike is to be made in July, the change data of the CPI index announced by TURKSTAT according to the 12-month averages in June of the relevant year is examined.
For workplaces, the rate of increase will be the rate determined in the contract. If it is written in the contract that an increase will be made by one of the indices announced by TURKSTAT, then it is calculated by looking at the rate of change of the relevant index announced by TURKSTAT in the month before the month in which the rent increase will be made. The landlord has the right to increase the rent at a rate equal to or less than this rate. For example, if the increase is to be made in August, the July data announced by TURKSTAT for the relevant index in that year is examined.
What is the highest increase rate that can be made in housing?
In accordance with Article 344 of the Code of Obligations, which was amended on January 18, 2019; As of January 1, 2019, the increase rate to be applied in the renewal contract periods for the houses should be determined in a way that does not exceed the increase rate in the Domestic Consumer Price Index (CPI) announced by the Turkish Statistical Institute (TÜİK) in the previous contract year. In the same article, it is also clearly stated that the CPI rate is to 12-month averages.
What has been the highest increase rate that can be made in housing for the last 12 months?
The highest legally applicable increase rates in housing rentals for the last 12 months are given in the table below.