Articles

Introduction

As of July 1, 2024, the 25% cap on rent increases for residential properties in Turkey has been lifted. This significant change marks a return to the pre-cap era, where rent adjustments are capped based on the 12-month average of the Consumer Price Index (TÜFE). This article aims to provide a comprehensive overview of the new rent increase regime and guide both tenants and landlords through the implications of this transition.

Understanding the Pre-Cap Era

Prior to the introduction of the 25% rent increase cap in June 2022, rent adjustments were governed by Article 344 of the Turkish Code of Obligations. This article stipulated that rent increases for renewed lease periods should not exceed the 12-month average change in the TÜFE. This mechanism aimed to ensure a balance between the interests of tenants and landlords, protecting tenants from excessive rent hikes while allowing landlords to maintain the purchasing power of their rental income.

The Implementation of the 25% Rent Increase Cap

In response to the economic challenges posed by the high inflation rate, the Turkish government introduced a temporary measure in June 2022, limiting rent increases for residential properties to 25%. This cap was intended to provide relief to tenants facing financial hardship during a period of heightened economic uncertainty. The cap was initially set to expire in July 2023 but was extended until July 1, 2024.

Navigating the Post-Cap Era

With the expiration of the 25% rent increase cap, the Turkish rental market has reverted to the pre-cap regime, where rent adjustments are limited based on the 12-month average TÜFE. This means that landlords can now increase rents by up to the 12-month average TÜFE, which currently stands at 65.07% as of July 2024.

Conclusion: Navigating Rent Increases with Nexpo's Expertise

The expiration of the 25% rent increase cap ushers in a new era for Turkey's rental market, one governed by the 12-month average TÜFE. While this shift may present challenges for both tenants and landlords, Nexpo stands ready to provide comprehensive legal guidance and support throughout this period of change.

Nexpo's Proven Track Record in Rent Dispute Resolution

Our team of experienced lawyers possesses a deep understanding of Turkish rental laws and regulations. We have a proven track record of successfully resolving rent disputes, advocating for the rights of both tenants and landlords. Whether you are a tenant facing an unreasonable rent increase or a landlord seeking to enforce your rights under the lease agreement, Nexpo can provide tailored legal counsel to protect your interests.

Beyond Information: Proactive Solutions for Your Specific Needs

This article has served as a general overview of the new rent increase regime. However, navigating the complexities of rent-related issues often requires a more nuanced approach. Nexpo goes beyond simply providing information. We work closely with our clients to understand their unique circumstances and develop proactive solutions that achieve their desired outcomes.

Don't Go It Alone: Partner with Nexpo for a Smooth Transition

The post-cap era may bring uncertainties, but with Nexpo by your side, you can face them with confidence. We are committed to fostering a smooth transition for both tenants and landlords, ensuring clarity, fairness, and adherence to legal requirements.

Contact Nexpo Today to Discuss Your Needs

Don't hesitate to reach out to Nexpo's legal team to discuss your specific situation and explore how we can assist you. We are here to help you navigate the new rent increase landscape and secure a positive outcome.