Basic rules for rent increases determined for new term
Throughout the year, landlords and tenants faced numerous issues. Increases in the minimum wage prompted landlords to consider raising rents. Here are all the details one needs to know on this issue.
Conditions under which landlords can request a rent increase
The thought that landlords can raise rents the increase in the minimum wage has made tenants worry. While experts shared their evaluations on the matter, they stated that landlords do not have such rights, and there is no relationship between salary increases and rent increases unless otherwise stated in the lease agreement. It was shared that, unless otherwise specified in the lease agreement, the lease agreement will be renewed once a year. The rent increase can be made during this renewal period, which occurs once a year. Landlords cannot increase rents simply because the minimum wage has increased.
Rent increase rate
The method for determining the rate of rent increase has become a topic of interest. Rent increase rates are determined in conjunction with inflation figures. The annual average of the Consumer Price Index (CPI) announced during the contract period reveals the increase in the rent increase rate. After significant increases, a 25% cap on rental rates was introduced in 2022. This cap has been extended until July 2, 2024, according to the new decisions. Expectations are that this date will be extended again.
The 25% rate, known as the legal rent increase rate, is generally not accepted by landlords in the market. Non-acceptance triggers the negotiation process. If the parties agree, an increase above the legal rate is possible. Tenants who have been in same residence for more than 5 years can file a determination lawsuit to reassess rental amounts. If the parties cannot reach an agreement through mediators within this lawsuit, a legal process lasting up to three years begins. During this period, rental examples in the region are examined. As a result of the lawsuit, a fair reduction is made to the tenant, and the new rent is determined.”
