Problems of Law Generated Due to the Increase in Rents of Residential and Roofed Workplace
Problems of Law Generated Due to the Increase in Rents of Residential and Roofed Workplace – Especially in cities such as Istanbul, Ankara, Izmir and throughout Turkey, it is observed that housing and workplace rents have increased significantly due to the construction sector has been experiencing a pause, the demand to acquire citizenship by investing in real estate of foreigners in large cities, unplanned migration, increasing the number of universities and the need for housing of university students, increases in inflation. Such that the rental prices, which were 1 unit in 2020, have increased to a price of about 3 units. As a result, annual increase rates in residential and workplace rental agreements have become unable to fulfil current prices. The workplace mentioned in our article is roofed workplaces.* In this article, questions of law arising from the increase in residential and workplace rents , our opinions are included on the disputes and solutions that often occur between the leasers and tenants who rent.
Residential and Roofed Workplace Rental Agreements
The lease agreement is a contract in which the leaser undertakes to leave it to the tenant to use or use something together with it, and the tenant, in turn, pays the agreed rental price. (Article 299 of the Turkish Code of Obligations) This provision is the general definition for all lease agreements. Increase in Rents of Residential and Roofed Workplace
Between Articles 339 and 356 of the Turkish Code of Obligations, regulations have been introduced on residential and roofed workplace rental contracts exclusively with the title of “Residential and Roofed Workplace Rentals”. With these provisions the state tried to establish a balance between the rights of owners of residence or workplace and the housing needs of the needs of all our citizens.
Mandatory Provisions of the Turkish Code of Obligations for Residential and Roofed Workplace Rental Agreements | Conditions That Must be Known for Residential and Roofed Workplace Rental Agreements
It can be seen that rential and workplace residential agreements are usually concluded either with the provisions of “printed”, that is, ready-made printed contracts sold in stationery stores, or contracts issued by realtors. Even if there are many clauses in the residential and workplace rental agreements and the parties think that these clauses are binding on them, since some of the regulations between Articles 339 and 356 of the Turkish Code of Obligations are mandatory; that article of the agreement is invalid and invalid in its legal sense.
If one of the parties to the lease agreement is a merchant or trading company of the tenant, all the provisions specified in the lease agreement will apply due to the obligation of the Turkish Commercial Code to act as a prudent businessman. Therefore, the tenant is a merchant or a trading company, whether it is a residential or a roofed workplace rental agreement, the provisions in the lease agreement will be applied, not the mandatory provisions between Articles 339 and 356 of the Turkish Code of Obligations.
Can I Ask My 1-Year Tenant to Evict, Vacate the House or Workplace ?
The leaser, that is, the landlord or owner, cannot terminate the contract based on the expiration of the contract period. This means that even if your lease agreement states that the term of the contract is one-year or two-year, the leaser can not request an eviction by saying that the term of the lease has expired. However, the tenant can evict the house by giving at least fifteen days’ notice before the period specified in the lease agreement. If the tenant does not apply for such a way, the lease agreement is considered extended for one year with the same conditions.
The leaser, landlord or owner; however, at the end of the ten-year extension period, provided that at least three months prior notice, the leaser may terminate the lease agreement and request an eviction. Increase in Rents of Residential and Roofed Workplace
From the point of view of leasers and tenants, there is a huge lack of information about this in practice. Because of the leaser or tenants do not have information about this, the tenants thinks that; there is a clause in the lease agreement that “the leaser terminates the contract at the end of the period.” then, based on this article, he/she can get me out, ask for his/her release, and from the point of view of the leaser, “there is a clause about it in the lease agreement, the contract expires, ” I have informed them in advance and they are thinking that I am demanding to be released.
As we have clearly stated above, if the provisions written in your lease agreement are contrary to the mandatory provisions of the Turkish Code of Obligations, the provision written in the lease agreement is invalid and void. That is why you need to know that everything that is written in the lease agreements is not binding.
For example, let there be a provision in your lease agreement that the leaser may request the tenant to vacate the residence or workplace at least 15 days before the end of the term of the contract. Despite the fact that the leaser gives notice on the basis of this provision, if the tenant does not evict the house, there is no chance of winning the eviction case that the leaser will open. Because the judge will personally apply the mandatory provision of the law and decide that the provision written in this way in the contract does not apply and dismiss the case.
In Residential and Roofed Workplace Rental Agreements, the Tenant Has the Right to Terminate the Contract Based on the Expiration of the Contract and Has the Right to Give At Least 15 Days’ Notice in Advance. If the Period in the Contract Is Longer Than 15 Days, It Will Again Be Considered That It Has a Period of At Least 15 Days.
No changes may be made to the lease agreements against the tenant, except for the determination of the rental price. The condition specified in Article 347 of the Turkish Code of Obligations “to give notice at least fifteen days before the expiration of fixed term contracts” can not be changed against the tenant by the contract.
A Caution Money of Up to Three Months’ Rent May Be Requested From the Tenant.
The condition for assuring the tenant can not exceed the cost of three months of rent. The caution money can not exceed the cost of three months of rent.
The Rent Increase Rate to be Applied at the End of the Rental Period in Residential and Roofed Workplace Rental Agreements is the Same as the Consumer Price Index of the Previous Rental Year (the CPI rate announced by Turkish Statistical Institute ) It Cannot Exceed the Rate of Change Compared to the Twelve-Month Average. (*If the tenant is a merchant or trading company, the provision specified in the contract applies.)
The rate of rent increase that will be applied to the contract between the leaser and the tenant at the end of the lease period can not exceed the rate of change compared to the twelve-month average in the consumer price index of the previous dec year. (Rates of increase exceeding the CPI are invalid. However, if the tenant is a merchant or trading company, these rates will apply.) This provision, which is regulated by the first paragraph of Article 344 of the Turkish Code of Obligations, entered into force on 17/01/2019. Before this date, the provision was determined according to the proportion in the Producer Price Index.
For example, suppose there is a provision in your lease agreement that rent increases will increase by 25 percent at the end of each lease period or every year. At the end of each rental period or every year, if the rate of change is less than 25 percent compared to the twelve-month average in the consumer price index of the previous rental year, this provision will be invalid and void. The leaser can only request an increase in the CPI rate. However, if the CPI rate is likely to be 30 percent, your rent increase rate will be as much as the 25 percent specified in the lease agreement. Increase in Rents of Residential and Roofed Workplace
The solution to this issue is quite simple. The increase rate specified in the lease agreement and the increase rate, whichever of the CPI rates will be in favor of the tenant, is valid.
It is a common occurrence that leasers request an increase well above the CPI rate. Leasers offer the justification that current rental prices have risen too much, so renters should also pay as much rent as this amount. We are witnessing that some landlords or owners have accepted the situation against the defense of some tenants that they can not request an increase higher than the rates specified in the contract or the law. But some leasers are against such defenses, saying, “You have usurped my house, how is this the law? is this how order works? if you are not going to pay the raise I want, get out of my house, did we earn these money easily?” The exact opposite of this situation is the events that we are witnessing. As follows; Despite the fact that the leaser demands an increase in the CPI rate, the tenant says, “I won’t raise it this year, I won’t pay it, do what you want, sue it or foreclose. ” Whether you are on the side of the leaser or the tenant; it is possible to explain each of the mentioned discourses separately. If the other party’s rhetoric on this issue comes from ignorance, a way of teaching and informing can be taken. But if the other party’s rhetoric on this issue is caused by ambition or ignorance, it is worthwhile to leave the dispute to the expert of the business, that is, lawyers.
The Turkish Code of Obligations, which was enacted by the legislative assembly of the Republic of Turkey (Parliament) and entered into force, binds everyone. The Republic of Turkey is a state of law. Not knowing the law is not an excuse.
In residential and roofed workplace rental agreements, we will explain the rent increase rate and other issues that need to be known under the title of “Rent Determination Cases in Residential and Roofed Workplace Rental Agreements”.
Sale or Change of the Rented Residence and Roofed Workplace
If the lease changes hands for any reason after the establishment of the contract, the new owner becomes a party to the lease agreement. (Article 310 of the Turkish Code of Obligations)
In the event that the residence or workplace is sold to someone else, your current lease agreement is valid with the same conditions. The old owner can not request an eviction by saying ”I will sell this place get out“, and the new owner must have fulfilled some legal conditions in order to say ”I am the new owner get out of here”. We will describe the circumstances of the case in question under the heading “Eviction in Residential and Roofed Workplace Rental Agreements” as ”the eviction case due to the requirement of a new owner”.
Rent Declaratory Actions in Residential and Roofed Workplace Rental Agreements
The rate of rent increase that will be applied to the contract between the leaser and the tenant at the end of the lease period can not exceed the rate of change compared to the twelve-month average in the consumer price index of the previous year. (Rates of increase exceeding the CPI are invalid.)
If there is a provision in the lease agreement on the rate at which the rental price will be increased, the lease declaratory action can only be opened in terms of the application of this provision. Although there are no time conditions for the opening of such rent declaratory action, the condition of the leaser and the precedent rental prices are not taken into consideration in these cases. Only the execution of the contract provision in accordance with the CPI will be in question.
However, the third paragraph of Article 344 of the fourth Turkish code of obligations; the parties for five years, long-term leases or renewed after five years on, and after that every five years, at the end of the year, the cost of the new lease rent to be applied in the Consumer Price Index for the twelve-month averages, according to the rate of change of the loans in consideration of the determination of equivalent status and equitable manner in the rental price decreed that could be the case.
As it can be seen, it is not possible for the leaser to request a rent increase based on “precedent rental prices” before the lease agreement expires for five years. However, after the expiration of five years of the lease agreement, “precedent rental prices” will also be taken into consideration at the rate of increase.
In rent declaratory actions that will be opened on the basis of the third paragraph of Article 344 of the Turkish Code of Obligations, the rental price will be determined from the next period.
Article about the increase in the presence of lease contracts or agreement housing or roofed workplace or at a date earlier than thirty days after the end of the period of the lease by leaser of rent or the cost to be opened during this period will be increased, provided that the tenant has been notified in writing as to the period of the lease until the end of the following new opening in the case of the rent from the beginning of the period of the new lease will apply.
Eviction in Residential and Roofed Workplace Rental Agreements
Our Opinions about the Prevention of Legal Disputes in Residential and Roofed Workplace Rental Agreements
Residential and roofed workplace rental agreements are contracts that impose mutual debts on the parties. Unlike the supply of goods or services, due to the fact that the contract is long-term, first of all, the parties must be aware of their rights and obligations. If the parties know their rights and obligations, they will not be able to make an unfair claim, but they will also be expected to do their part.
It is quite unlikely that the parties who know the boundaries of the contract will have disputes, problems, disputes with each other. Because a leaser who knows that the rent increase rate will not exceed the CPI will also not make sense to ask his tenant for an unfair rent increase in rates that exceed the CPI. Similarly, if the tenant who is responsible for the dues debt due to the residental lease agreement is aware that his eviction may be in question if he does not pay the dues debt, there will be no dispute about who is responsible for the dues debt.
Although residential or roofed workplaces are considered to be an investment tool for some owners, it is important to be aware that the “lease agreement” is a legal relationship, the fact that the rental proceed is not considered as a commercial activity, it will also be appropriate for him to admit that people looking for a rented house and workplace to meet the housing needs of people and families and to meet the need for a workplace.
There will be no problems that a law-abiding society will not be able to handle. For the peace of mind of our society and the generations after us, it is important not to insist on things we don’t know, to consult a specialist and to get the information from the right sources.
Although the current increases in residential and roofed workplace rent agreements are seen as in favor of the owners or landlords, the astronomical and prohibitive increases in question will occur in a very short time, at some point it will also be against the owners or landlords. The Consumer Price Index rate and the inflation rate are the same. As a result, the increase in inflation in the country will cause everyone to lose. Increase in Rents of Residential and Roofed Workplace
“In terms of residential rents, agreements regarding the rental price to be applied in renewed rental periods between the date of entry into force of this article and 1/7/2023 (including this date) are valid, provided that it does not exceed twenty-five percent of the rental price of the previous rental year. If the rate of change in the consumer price index of the previous rental year is below twenty-five percent compared to the twelve-month averages, the rate of change is valid. This rule also applies to lease agreements for more than one year. Contracts made to exceed these rates are invalid in terms of excess amount.“
According to the new law regulation, the rate of increase in the housing rent between the dates of 11 June 2022 and 1 July 2023 will be 25% of the rental price, not according to the 12-month inflation increase.
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