What is the Rent Increase Rate?
The relationship between landlord and tenant is very common and important in our country. The annual percentage by which the rent of a leased property is increased is called the rent increase rate. However, if this amount is raised excessively, it is subject to legal intervention. In other words, laws have been enacted to prevent rent increases at exorbitant rates by regulating contracts. Based on this, the maximum limit for rent increases that can be applied is the 12-month average of the Consumer Price Index (CPI) from the previous rental period.
How is the Rent Increase for Real Estate Calculated?
There are two options regarding the rent increase of a property. The parties may have agreed, at the time of contract formation, on a rent increase that does not exceed the upper limit of the Consumer Price Index (CPI). Alternatively, the parties may not have agreed at the time of contract formation but can agree upon contract expiration on a rent increase that does not exceed the applicable CPI rate.
If the parties have not specified any increase amount in the contract and have not reached an agreement on the rent increase, the rent increase rate is determined by the judge based on fairness.
Additionally, for rental agreements agreed upon for more than five years or those renewed after five years, the rent to be applied at the end of each five-year period can be determined by the judge, taking into account the characteristics of the property, without being limited by the CPI rate.
What Can Be Done If the Tenant Is Paying a High Rent?
If the tenant is paying a rent that is significantly higher than comparable market rates, they can file a rent determination lawsuit. In this case, the court primarily considers the 12-month Consumer Price Index (CPI), the condition of the leased property, and comparable rent amounts. The judge takes these factors as references and makes a decision based on fairness.
What Can Be Done If the Rent Paid by the Tenant Is Much Lower Than the Market Rate?
In Turkish law, the lawsuit filed to determine the rent amount is called a rent determination lawsuit. This lawsuit is especially filed in cases where the parties cannot reach an agreement on rent increases. Article 345 of the Turkish Code of Obligations contains provisions related to this matter. If the rent paid by the tenant is significantly below market conditions, a rent determination lawsuit can be filed.
What Can Be Done If the Property Owner Increases the Rent Excessively?
In practice, we often see many property owners unilaterally increasing rent amounts beyond the legal limit. However, the law does not grant such a right to property owners. In such cases, the tenant is not obligated to pay the amount imposed by the property owner. If an increase rate was determined when the contract was made, payment should be made accordingly. If no increase rate was specified in the contract, payment can be made based on the Consumer Price Index (CPI), or the tenant may request the court to determine the rent amount.
What Can the Property Owner Do If the Tenant Refuses to Pay the Rent Increase?
The tenant does not have the right to refuse a rent increase that has been made in compliance with legal limits. If an increase rate was specified when the contract was established, the increase is applied accordingly. Otherwise, the tenant can request the court to determine the rent.
If the tenant acts contrary to the contract and makes partial or no payment, the debt can be collected through the enforcement office, eviction proceedings can be initiated, or an eviction lawsuit can be filed.
ANTALYA TENANT LAWYER – ANTALYA RENTAL LAW ATTORNEY
All these processes related to rental law that we have briefly discussed require technical knowledge and experience. In situations where sufficient and necessary care is not taken, individuals may suffer loss of rights. Therefore, our law office provides you with professional consultancy and follow-up services in the field of rental law.
