Increasing the house rent is one of the most important points which creates problems and also serious debates between the householder and the tenants. Rent is what owner of the house charge tenants for using his or her estates in the terms of a legal contract. Sometimes the tenant does not want to pay for the increased legal rate and in some cases, the owner of the house asks for a very high renting rate. The solutions for these cases are already described in The Law of Obligations which entered into force in 2012. So the question is what criterion can be used to raise the rent?
How to Increase the Rent?
The lease contract is the term for describing renting of real estates such as residences and workplaces within a year unless otherwise stated. Contracts are mostly being renewed at the end of the year, and rent increase can be made at the end of the contract. The foreign currency remains the same within five years. The increase is determined by courts.
Legal Rent Increase
In the terms of legal limits to increase the rent price is called legal rent increase which determined by not exceeding the 12-month average ÜFE of the previous year. The index rate that measures the price changes of the products in the country’s economy has its source on the increase in rents. Producer Price Index is released by the Statistics Institute of Turkey every month in which Price changes in the index rates can be found. The rates regulated by taking the 12-month average of the UFE are based on the rent increase which is carried out by taking a look at the last month at the time when the rent increase is planned. To increase rental rates over UFE rates is not possible.