Rental Price Regulation – Landlord & Tenant – Leases – Turkey



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INTRODUCTION

The procedures and ideas relating to the willpower of the
rental costs of immovables topic to lease agreements are
regulated within the Turkish Code of Obligations numbered 6098
(“TCO”), and the procedures and ideas beneath which
the rental costs will probably be decided within the renewed lease intervals
are stipulated in Article 344 of the TCO. In this respect, as per
the Article 344 of the TCO;

“The agreements of the events relating to the rental
worth to be utilized within the renewed lease intervals are
legitimate, supplied that they don’t exceed the speed of change in
the buyer worth index within the earlier lease 12 months in response to
the twelve-month averages. This rule additionally applies to lease
agreements with a time period longer than one 12 months.

If the events haven’t made an settlement on this matter,
the rental worth shall be decided by the court docket in response to
fairness, taking into consideration the situation of the leased property,
supplied that it doesn’t exceed the speed of change in response to
the twelve-month averages within the shopper worth index of the
earlier lease 12 months.”

it’s stipulated that the rental worth to be decided between
the lessee and the lessor for the brand new lease interval can’t
exceed the speed of change to be decided in response to the
twelve-month averages within the shopper worth index within the earlier
lease 12 months.

In this context, earlier than the regulation dated 11.06.2022 entered
into drive, the events had been figuring out the brand new lease interval
rental worth for the lease settlement throughout the framework of this
Article 344 of the TCO. As a matter of reality, with the entry into
drive of the Law on the Amendment of the Law on Attorney and the
Turkish Code of Obligations (“Law“), new
laws relating to residential leases have been issued and the
events are required to find out the rental costs in accordance
with the brand new regulation till 01.07.2023.

REGULATIONS UNDER THE LAW

With the Law revealed within the Official Gazette dated 11.06.2022
and entered into drive on the revealed date, a brand new regulation has
been issued relating to the rental costs to be decided for the
new lease interval just for residential leases and it has been
determined so as to add the next provisional article to the Turkish
Code of Obligations numbered 6098.

“In phrases of residential leases, agreements relating to
the rental worth to be utilized within the lease intervals renewed between
the date of entry into drive of this text and 1/7/2023
(together with this date) are legitimate, supplied that they don’t
exceed twenty-5 % of the rental worth of the earlier
lease 12 months. If the speed of change within the shopper worth index of
the earlier lease 12 months in response to the twelve-month averages
stays under twenty-5 %, the speed of change shall be
legitimate. This rule additionally applies to lease agreements with a time period
longer than one 12 months. Agreements made in extra of those charges are
invalid by way of extra quantity. The provision of this paragraph
shall additionally apply to the selections to be made by the court docket pursuant
to the second paragraph of Article 344.”

With this provisional article added to the TCO, whereas
figuring out the rental costs throughout the scope of the lease
agreements the lease intervals of which will probably be renewed
between 11.06.2022 and 01.07.2023;

Pursuant to the aforementioned Article 344 of the TCO,
if the speed of change to be decided based mostly on the 12 (twelve)
month averages of the buyer worth index of the earlier lease
12 months is lower than 25% of the rental worth for the earlier lease
interval, this price of change will probably be utilized,

If the speed of change is greater than 25% of the rental
worth for the earlier lease interval, the rental worth for the brand new
interval will probably be decided supplied that it’s not greater than
25% of the rental worth for the earlier interval.

It is essential to notice that this provisional article added to
the TCO is obligatory and within the occasion that the rental worth for the
new interval is elevated in violation of the procedures and
ideas set forth beneath this text, the quantity
exceeding 25% of the rental worth for the earlier lease interval
will probably be deemed invalid.

However, if an settlement relating to the willpower of the
rental worth can’t be reached between the events, in accordance
with paragraph 2 of Article 344 of the TCO, the rental worth shall
be decided by the court docket in response to fairness, taking into consideration
the situation of the leased property, supplied that it doesn’t
exceed the speed of change within the shopper worth index of the
earlier lease 12 months in response to the twelve-month averages and does
not exceed 25% of the rental worth for the earlier lease
interval.

It must also be famous that the laws launched beneath
this provisional article are solely legitimate for residential leases, and
the regulation that the rental worth can’t be greater than 25% of the
rental worth for the earlier interval is not going to be relevant for
roofed office and different immovables leases.

In addition, it needs to be famous that the essential situation for
this regulation is that the lease settlement between
the events is renewed between 11.06.2022 and
01.07.2023.
 Therefore, with regard to the lease
agreements renewed earlier than 11.06.2022 the Article 344 of the TCO
will probably be utilized, and the rental worth will probably be decided supplied
that it doesn’t exceed the speed of change to be decided
in response to the twelve-month averages within the shopper worth index
within the earlier lease 12 months.

The content material of this text is meant to supply a basic
information to the subject material. Specialist recommendation needs to be sought
about your particular circumstances.

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