The rise in rental rates in Turkey is due to the high demand for owning and renting properties by both locals and foreigners, including Arabs. Turkey is considered one of the most prestigious countries in the world, combining the civilizations of the East and the West, blending modern urban development with ancient and historical buildings. This attracts tourists and investors worldwide, eager to live or visit its landmarks. In this article, we will discuss the rental increase rates in Turkey.

Average Rental Increase Rate in Turkey 2023

Amid the significant increases in recent months, the Turkish government announced that a temporary clause would be added to the Law of Obligations and Contracts under the Justice Department, stipulating that the rental increase rate cannot exceed 25%.

The proposed amendment by the Justice and Development Party and the Nationalist Movement Party to the Turkish law specifies that the rental increase rate cannot exceed 25% of the previous rent in all contracts renewed until July 1, 2023.

Rental Increases in Turkey

Turkey has experienced a notable rise in housing rents recently, which has become a burden for residents, especially in major cities. The Turkish Statistical Institute announced the rental increase rate for those planning to renew their rental contracts in June, reaching 39.33%.

For example, if the rent for a property is 1,000 Turkish Lira and the contract renewal time is in June, the new rental value, with the increase set by the government, would be 1,393.3 Turkish Lira.

Rentals in Istanbul

According to a study by the Economic and Social Research Center at Bahçeşehir University in Turkey, rental prices for homes in Istanbul increased by 97.7% in January compared to the same month last year.

The rental price for homes is approximately 44 Turkish Lira per square meter in Istanbul, which houses around 16 million people. The annual rental increase rate in the city rose by 13.1 points compared to December 2021.

Tenant Responsibilities in Turkey

According to the Turkish rental law, tenants have several obligations towards property owners, including:

• Paying the rent on time as per the contract, with the last day of the month being the final payment day if not specified in the contract.
• Covering all expenses related to the use of the property, such as bills and repairs. The property owner can terminate the contract if the tenant fails to pay the rent and related expenses.
• Returning the property to the owner in the same condition it was received.
• Not making any changes to the property's structure without the owner's written consent.
• Not subletting the property, as this gives the owner the right to file a lawsuit to evict the tenant and terminate the contract.

Property Owner Responsibilities in Turkey

According to Turkish law, property owners also have several obligations towards tenants, including:

• Paying all property-related taxes and obligations unless otherwise agreed upon in the contract.
• Compensating for any defects or deficiencies in the property that cause harm to the tenant during their stay.
• Not imposing any penalty clause on the tenant for late rent payments.
• Not disturbing the tenant during their stay in the property.
• Paying all property ownership taxes before handing over the property to the tenant.

Rental Contract Terms in Turkey

A rental contract in Turkey includes various details such as:

• All personal information of the property owner, including their ID number, full name, address, and phone number.
• All personal information of the tenant, including their ID number, full name, address, and phone number.
• The start and end dates of the contract.
• The annual and monthly rental value of the property.
• The method of paying the rent, specifying how the tenant will transfer it to the property owner.
• Details about the property's status, whether it is ready or under construction.
• The reason for renting the property, whether for residential or commercial purposes.
• A page containing all obligations and regulations for using the property.

Payment of Rent

Tenants in Turkey must pay the monthly rent either through a bank transfer or in cash, monthly or annually, depending on the agreed date and time specified in the contract. Rent can be paid in the middle of the month or any other day, with a five-day grace period for late payments.

Importance of a Rental Contract

As a resident in Turkey, you must specify your address, particularly when conducting any state transactions. The rental contract serves as proof of your address, allowing you to register in schools, set up internet connections, and open water and electricity accounts. It is also used for marriage registration and various legal and judicial matters. It is advisable to notarize the contract with a notary public.

Reasons for Terminating a Rental Contract in Turkey

There are several reasons for terminating a rental contract by either party:

• End of Lease Term: The contract automatically terminates at the end of the lease term if neither party wishes to continue renting. Both parties must notify each other of their intent not to renew at least one month before the contract's end.
• Property Defects: The tenant has the right to terminate the contract if a significant defect is discovered in the property, and the owner refuses to fix it. The tenant may repair the defect, provided it is deducted from the payable contract value to the owner.
• Non-Payment of Rent: The tenant can delay rent payment for up to 10 days for residential properties and 30 days for commercial properties after the due date.
• Neglecting the Property: If the tenant causes significant damage or alteration to the property without the owner's permission, the owner can terminate the rental contract. The owner can also terminate the contract if the tenant disturbs neighbors or fails to comply with building safety regulations.

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