The rent increase is the most discussed subject between landlord and tenant. The rule is in fact clear: the annual increase on residential rents cannot exceed the twelve-month average of the consumer price index.
How the upper limit is found
The Turkish Statistical Institute publishes the consumer price index every month. For a rent increase, the twelve-month average for the month of the contract anniversary is used.
Because this rate changes every month, the month the increase is calculated in matters. Even if the contract states a higher rate, the legal limit applies.
How the calculation is made
The current rent is increased by the twelve-month average rate for the month in question. The result is the new rent.
The increase is applied by written notice on the anniversary of the contract. It matters that the notice is dated and that delivery can be proven.
If a dispute arises
If the parties cannot agree, an action to determine the rent is open. The court weighs the comparables in the area and the condition of the property.
Litigation takes a long time and wears the relationship down. In most cases an open conversation backed by comparable data gets there faster.
After the fifth year
In long-running tenancies, after a certain period the rent can be asked to be reset in line with comparables. This is separate from the cap on increases.
Here too the figure is worked out from comparables, based on the rents actually achieved in the area.
Related sections of this guide
- How is the rent set? Comparables and method
- Rental income tax: exemption, declaration and expenses
- What should a lease agreement contain?
Terms from the glossary
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