2023 August WORKPLACE Rent Increase Rate 57.45%
2023 August RESIDENCE Rent Increase Rate 25%
First of all, we can state that the upper limit of the increase to be made in the RESIDENCE rental agreements to be renewed between June 11, 2022 and July 2, 2024 will be applied as 25%.
If this temporary arrangement had not been made, the legal rent increase rate for the RESIDENCE rental agreements to be renewed in August 2023 would have been 57.45%.
PPI (Producer Price Index) and CPI (Consumer Price Index) inflation rates are announced in the first week of each month in Türkiye.
When the rates are announced, rent increase rates can be calculated according to the twelve-month averages.
AUGUST 2023 RENT INCREASE RATE
The CPI table, in which the rent increase rate for August 2023 is calculated, has been announced.
According to the statement of TURKSTAT dated August 3, 2023, CPI (Monthly Consumer Price Index) increased by 9.49%.
CPI, which accepts the year 2003 as the basis for the calculation;
1- In July 2023, 9.49% compared to the previous month
2- 47.83% compared to the same month of the previous year
3- 31.14% compared to December of the previous year (2022-December)
4- Compared to the twelve-month averages, there was an increase of 57.45%.
How much the rent will be increased is calculated according to the twelve-month average change announced.
Accordingly, in AUGUST 2023, an increase of 57.45 % should be made in the RESIDENCE rent amount at the most, and according to the temporary arrangement, the upper limit for the rent increase to be made between 2 July 2021 will be 25%.
WHAT IS THE LEGAL BASIS FOR THE RENT INCREASE?
In article 343 of the Code of Obligations; it has been determined that “Except for the determination of the rental price in the lease agreements, no changes can be made against the tenant.”
In Article 344, titled Determination of the rental price, “The parties’ agreements on the rental price to be implemented in renewed rental periods” are valid provided that they do not exceed the change rate according to the twelve-month averages in the consumer price index in the previous rental year. This rule also applies to lease agreements for more than one year. (With article 56 of Law No. 7161 of 17/1/2019, the phrases “increase in producer price index” in the first and second paragraphs of this article have been changed as “change according to twelve-month averages in the consumer price index”.)
If an agreement has not been made by the parties on this matter, the rental price is determined by the judge in accordance with the condition of the leased property, provided that it does not exceed the change rate according to the twelve-month averages in the consumer price index of the previous rental year.
WHAT IS THE UPPER LIMIT FOR WORKPLACE RENTAL INCREASING?
With the amendment made on Jan 17, 2019 in Article 344 of the Code of Obligations, the upper limit for rent increases has been determined as the twelve-month average of the CPI. According to the Inflation and Price data table published by TURKSTAT, the maximum rate to be used in WORKPLACE rent increases in AUGUST 2023 has been announced as 57.45%. The parties are free to determine the rental amount below this rate and cannot determine an amount above this rate.
Source: TURKSTAT- Translated by Karen Audit – KarenAudit owns the rights to this translation, and any unlawful use is forbidden.
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither Karen Audit nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.
