Final arrangements have been made in the studies on rent increases and the scope of the study has been explained by the government officials. Accordingly, in accordance with the temporary article 1 added to the Turkish Code of Obligations, agreements regarding the rental price to be applied in the renewed rental periods between 11 June 2022 and 1 July 2023, It is stipulated that it is valid provided that it does not exceed 25% of the rental price of the previous rental year. Contracts made to exceed these rates will be deemed invalid. No regulation has been foreseen in terms of lease agreements, the renewal period of which was concluded before 11 June 2022; The regulations envisaged in the Omnibus Law will be valid for rental relations that take place after the effective date of this Law.
The regulation on rent increase rates, which has been on the agenda for a while, covers a 1-year period. According to the previous practice, the increase was made according to the average of the 12-month CPI and according to the latest data, the CPI was calculated as 39.33 percent. Unless the period is extended by a new law, lease agreements with a renewal period after 01.07.2023 will not be affected by the 25% increase limit. However, if the change rate in the consumer price index of the previous rental year is below 25% compared to the twelve-month averages, the CPI change rate will be valid and this regulation will also be binding for lease agreements with a duration of more than 1 year.
On the other hand, workplace rents are excluded from the scope of the Law. The introduced regulation is valid only for residential rents. In this direction, the twelve-month change rate in the CPI, which is included in the TCO in terms of workplace rents, will continue to increase. 344/3 of the Turkish Code of Obligations, in lease agreements of property owners for more than 5 years or renewed at the end of 5 years. No change has been made on the right to file a determination lawsuit pursuant to Article 344/2 of the Turkish Code of Obligations. In the cases of determination of the rental price to be filed pursuant to the article, the newly introduced regulation will find an application area and if the parties have not made an agreement regarding the increase rate to be applied while determining the rental price for the new period, this increase limitation will also be applied in the decisions of the judge in a rental price determination case to be opened. As it is known, according to the current opinion of the Turkish Supreme Court of Appeal, Article 344/3 of the Turkish Code of Obligations. In the lawsuits for the determination of the rental price filed pursuant to the article, the rental price is determined by making a reasonable discount from the rental price to be brought by an expert, in case the immovable is rented out on free terms, taking into account the principle of right and grace.
As a result, the new regulation introduced affects and concerns many property owners and tenants in our country. On the other hand, property owners do not have any right of action or legal recourse regarding the change of law or its consequences.
Unal&Partners Legal Team
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