In short
On a housing rent the statutory ceiling of the increase is looked at for its period. An action for determination is not a copy of the ceiling. Rent determination speaks of the comparable price.
The start of the contract and the chain of renewal are the photograph of the period.
Adaptation is an action for an extraordinary condition.
The province of the immovable draws the jurisdiction. The province of the office does not draw it.
Related notes: grounds for eviction.
The statutory limit on a housing-rent increase is fixed according to the rules in force. In most periods the rate of change in the consumer price index (CPI) is taken as the basis. Temporary statutory ceilings may have been applied. A high rate in the contract may not be able to pass a mandatory limit. Different rules can apply on workplace leases. This note is for general information. The current legislation and the concrete contract should be examined together.
What does the statutory limit on a rent increase mean?
A rent increase is the raising of the rent in the period when the lease is renewed. On housing leases the state can put a ceiling on the rate of increase in order to protect the tenant. This ceiling can invalidate a higher rate written in the contract. The landlord should ask for an increase that fits the statutory limit. The tenant can check the correct rate too.
Within the frame of real-property law, a rent increase should be thought of apart from subjects such as the grounds for eviction and a transfer of title. A dispute over the increase is not, on its own, counted as a ground for eviction.
Whom does it concern?
- Housing tenants and landlords
- Parties whose lease-renewal period has come
- A party who calculates the CPI rate wrongly, or who passes it
- Firms that manage property and that act as intermediaries
- Workplace tenants (different rules of freedom)
- Those who have a rent dispute in Ankara and in other provinces
A general rate should not be applied without the separation of housing and workplace being made.
How is the statutory limit fixed?
On housing leases the basic reference is the rate of change according to the twelve-month averages of the CPI for the previous rental year. In certain periods a lower ceiling may have been applied by statute, for example something like twenty-five percent. Which period is assessed with which ceiling depends on the starting date of the contract and on the month of renewal.
The current legislation can change. The Official Gazette and the current arrangements should be checked, rather than an old blog note or oral information. This note presents a general frame. The date of the contract should be taken as the basis, rather than memorising a figure.
The CPI calculation in practice
When the calculation is made, these are taken into account:
- In which month the lease was renewed
- The comparison with the same month of the previous rental year
- The official CPI index values
Choosing the wrong month can give rise to a difference of a few points and to a dispute of hundreds of lira a month. Sharing a written calculation table reduces the disagreement.
The rights of the tenant and of the landlord
The landlord: can ask for an increase that fits the statutory limit, can send a written notification, and can go to the path of the court in a dispute.
The tenant: can check the rate of increase, can refuse a request that passes the statutory limit, and can open mediation or an action if needed.
Neither party should mix items such as the term of the contract, the deposit, and the maintenance due.
How does the legal process move?
- Fixing the renewal period. The date in the contract, or the anniversary, is determined.
- Checking the CPI and the ceiling. The current legislation and the index values are calculated.
- Written notification. The landlord notifies the new rent.
- Acceptance or objection. If the tenant finds it fitting, they pay. If they do not, there is an objection or a negotiation.
- Mediation or an action. If there is no agreement, the path of the dispute is opened.
- The decision and its application. If the court fixes the rate, the parties comply with it.
The process changes according to the contract and to the legislation. There is no fixed calendar.
The difference between housing and a workplace
On workplace leases freedom of contract can be wide. The parties can agree the rate of increase more freely. On a housing rent the mandatory protective provisions apply. If there is both housing and a workplace in the same building, the kind of contract should be read apart.
Practical notes in the Ankara rental market
In Ankara the rent-increase periods are generally seen in the density of September and October and of the start of the year. Tenants and landlords should follow the CPI announcement. Payment or collection at a wrong rate gives rise to a dispute. The written contract and the notification should be taken as the basis, rather than an estate agent's oral promise.
Renewal of the contract and extension of the term
If the lease is for a fixed term, renewal at the end of the term is discussed differently. On contracts for an indefinite term, the periods of a notice of termination are a separate subject. The request for an increase should be made at the same time as the renewal. A reasonable time should be given to the tenant. If there is an automatic-renewal clause, the text should be read carefully. The term and the increase should not be mixed with each other.
Payment and a reservation
If the tenant does not find the rate of increase fitting, stopping the payment entirely can be risky. Payment under a reservation, or the course of the dispute, is assessed on the concrete file. A description line on the payment slip, and an archive of correspondence, are useful. The landlord can treat the short payment as default and try to bring an action for eviction. For this reason the strategy should be built carefully.
The five-year contract limit and the current arrangements
Mandatory arrangements about the term of the contract on housing leases may have changed over time. When a new contract is made, the current legislation should be checked. Adding a new increase clause to an old contract depends on the will of the parties and on the statutory limits. In real-property transactions such as a check before a transfer of title, the lease should be examined too.
An example of a rent-increase notification (elements of content)
A written notification should generally contain these elements: the existing rent, the starting date of the new period, the CPI rate that was applied or the statutory ceiling, the new price that was calculated, and the method of payment. An uncertain expression of "an increase will be made" may not be enough. The tenant should note the date they received the notification. In a dispute the date of service can gain importance.
Pressure to evict and protection of the tenant
The landlord cannot change the door lock, remove the goods, or cut the electricity because the increase was not accepted. The grounds for evicting a tenant are limited in the statute. An attempt at eviction contrary to law can give rise to compensation, or to an interim measure, in favour of the tenant. A dispute over the increase should be resolved on the path of the court.
The mediation requirement
A mediation requirement can come onto the agenda in rent disputes. A mediation agreement should be written and signed. If there is no agreement, the path of an action is opened with the final minutes. Skipping the mediation process can lead to dismissal of the action. A plan of time and of cost should be made.
How are the CPI and the statutory ceiling read together?
In some periods the statute may have brought a lower ceiling, independently of the CPI rate or together with it. For example, even if the CPI were forty percent, if the statutory ceiling were twenty-five percent, the rate to be applied can be the ceiling. Which rule is in force in which period is determined according to the renewal date of the contract. The landlord and the tenant should check the current arrangement published in the Official Gazette. The current text should be taken as the basis, rather than old blog notes or oral information.
A rent increase and periods of inflation
In periods of high inflation the CPI rate can come out high. In that case a statutory ceiling can protect the tenant. When the ceiling is applied, the landlord cannot breach the contract by saying "I had a right to an increase as much as the CPI". The tenant does not have to accept an increase that remains under the ceiling. An increase as much as the statutory limit is applied. On long-term contracts a separate calculation should be made in each renewal period.
The discipline of correspondence of the tenant and of the landlord
Correspondence between the parties in the increase period (email, a registered letter with advice of receipt, a notarial notice) can be evidence of an action later. The landlord should convey the request for an increase in writing. The tenant should put their objection on a written record too. A spoken telephone conversation may not, on its own, carry the force of proof. The description "rent" on the slips, and the period information, should be clear.
The limits of freedom on workplace leases
On workplace leases the parties can agree a higher rate of increase by contract. The mandatory ceiling on a housing rent may not apply here. Against that, there are mandatory provisions and conditions of termination on a workplace contract too. The kind of contract should not be labelled wrongly. If a place of a housing character was leased with a workplace contract, a discussion arises.
The separation of the rent and the maintenance due
The rent, and the maintenance due, heating, water, and common expenses, are different items. The landlord should apply the increase only to the rent, and should justify the maintenance due separately. If the maintenance due was written as fixed in the contract, a unilateral increase is open to discussion. The tenant should follow which item was paid on the slip. A mixed collection gives rise to a dispute later.
The court and the path of settlement on a rent increase
If an agreement cannot be reached, an action for determination of the rent can be brought in the civil court of peace. The court can fix a fitting price by assessing the CPI and the statutory ceiling together. Throughout the length of the proceedings the parties can make a temporary payment arrangement. This arrangement should be in writing. When the court decision becomes final, the parties have to comply with it.
A new lease and the increase clause
When a new lease is made, even if the increase-rate clause is written in a way that would pass the statutory ceiling, the ceiling is taken as the basis in practice. Even if the tenant signed the high rate in the contract, they can object to the statutory limit. The landlord should reflect the current legislation in the draft contract. The tenant should also check the CPI and the ceiling calculation before signing. In Ankara and in other provinces the density can increase in rent-increase periods. Sharing a written notification and a calculation table reduces the dispute.
Mistakes often made
- Applying a workplace rate to housing
- Taking as the basis a ceiling arrangement that is not current
- Using the wrong month in the CPI calculation
- Relying on an oral agreement of an increase
- Counting a dispute over the increase as a pretext for eviction
- Mixing the deposit and the maintenance due with the rent increase
- Skipping the mediation requirement
Risk of loss of a right: the legislation can change by period. The date of the contract and the current ceiling should be checked together.
Where the ceiling is read from
The record of the period and the text of the contract are read side by side. A rate of increase and a percentage that are not written on the file are not added to this note. Determination of the rent is not counted in place of the statutory ceiling. The office in Çankaya does not change the competent authority.
Conclusion
The statutory limit on a rent increase is fixed, on housing leases, by the CPI and by the statutory ceiling. The text of the contract cannot, on its own, pass the mandatory limit. The current legislation and the calculation table should be used together. This note is for general information. On a concrete contract the result can change.
The real-property law page and the related blog notes provide additional context.