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Rent Increases | New law effective July 2012 (Istanbul)


This may be of interest to expat renters in Turkey. As of July Protected content Turkish legislation* states that house rents in Turkey can be increased by a maximum of the annual Producer Price Index (vs the prev legal requirement of a max increase of average YoY PPI+CPI).

You can see annual (YoY) Producer Price Index (PPI) on: Protected content

For example, a rent increase on a 1 year rental contract that renews at the end of February Protected content 1.84%.

Don't get ripped off by unscrupulous landlords and emlakcis! Know your rights.

* BORÇLAR KANUNU Madde Protected content


* The law says that the State Statistics Institute (TUIK Protected content data should be used (though this is the same as PPI data shown on Central Bank page linked above). To see the inflation data set on TUIK page go to: Protected content in this order choose 'rate of variation' / ' Protected content year' / '2013' / 'PPI' /'The variation in the index with respect to the previous year in the same month (%)' and press 'Make Report'
* Some landlords are trying to increase rent by "variation in the index with respect to the 12-month average of the previous year" rather than the correct "variation in the index with respect to the previous year in the same month". The former is higher at the moment and works better for the lessor though this will not always be the case when inflation inevitably rises.
* The new law that puts PPI as the base for rate increases supersedes contract law. i.e. it doesn't matter what was written in your rental agreement, all residential rental increases since July Protected content limited to PPI.
* This law does not apply for commercial rental agreements - the amendment for them was postponed for 7 years. Commercial contracts will still be at average PPI+CPI or whatever the rental contract states.

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A few other issues regarding property rental in Turkey:

* Make sure you pay rent to the landlord's bank account - it is illegal to pay rent in cash. The transfers are also evidence you have paid rent and the landlord is liable for tax on your rent payments.
* Emlak fees are nominally 12% of annual rent - try and get a proper receipt for it from the emlak to ensure they're paying tax on the income.
* Always pay your rent on time and at latest within 15 days of the agreed date - two late payments is grounds for starting eviction proceedings.
* If the landlord serves documents on you they must come via a notary. Also, they may be delivered to your local 'muhtar' if you are not home, in which case you will still be considered as being served. i.e. keep an eye out at the muhtar if you're having a disagreement with your landlord.

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