The Rate of Increase for Housing Rents has been Limited
Following the publication of the Official Gazette dated 11.06.2022 and numbered 31863, The Law Amending the Attorneyship Law and Turkish Code of Obligations (“The Law”) has been entered into force. As per Provisional Article 1 of Turkish Code of Obligations (“TCO”), introduced with the Law, the rate of increase that can be applied to housing rents has been limited.
In accordance with the related provision, the agreements regarding the rental fee that will be applied during the renewed rental period between 11.06.2022, which is the effective date of the Law, and 01.07.2023 (including this date), will be valid provided that it does not exceed 25% of the previous year’s rent. If the change rate in the consumer price index of the previous rental year is less than 25% compared to the twelve-month averages, then this rate of change is applicable. The agreements that exceed the determined amount are invalid for the excess amount.
The aforementioned 25% increase rate is both applicable for the agreements for more than a year and the decisions ruled by the judge under the Art. 344/2 of TCO.
You may find the full text of the law here. (Turkish)
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