The “Provisional Article 1” added to the Turkish Code of Obligations numbered 6098 with the Official Gazette dated 11.06.2022 and numbered 31863 is exactly as follows;
“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. The provision of this paragraph is also applied for the decisions to be made by the judge pursuant to the second paragraph of Article 344.”
Before the "Provisional Article-1" regulation, which was published in the Official Gazette and entered into force as of its publication; According to article 344 of the Turkish Code of Obligations, the owners of the houses had the right to increase their rents, provided that they did not exceed the change rate according to the 12-month average in the consumer price index. However, with the new regulation, the rate of increase in the rental price is limited to 25%.
Provisional Article-1, regulates that an increase rate of more than 25% cannot be agreed upon in residential lease agreements concluded until 01.07.2023. If the increase rate is determined more than 25% in the rental agreement, the excess amount is invalid in the rent increases exceeding the 25% increase rate.
The 25% increase rate limitation covers only residential rents. The rule of increasing the Consumer Price Index (“CPI”) rate for workplace rents will continue.
Gökşen SAĞMAN, Legal Intern
Koray ATEŞ, Legal Intern