New ceiling rate for rent increases announced: July calculation for homes and workplaces clarified

With the announcement of June inflation figures by the Turkish Statistical Institute (TÜİK), the maximum increase rate applicable to residential and commercial rents has become clear.

According to TÜİK data, monthly inflation in June was 0.99 percent, while annual inflation was 32.11 percent. In line with the announced data, the 12-month average of the CPI, which is the basis for rent increases, has also been updated.

RENT INCREASE RATE SET AT 32.03 PERCENT

Following the June inflation data, the maximum rent increase rate applicable for homes and workplaces renewing their lease agreements in July has been set at 32.03 percent.

Accordingly, commercial tenants and property owners whose lease agreements expire this month will be able to apply a rent increase based on the legal upper limit of 32.03 percent.

REMAINS BELOW LAST MONTH'S RATE

The maximum rent increase rate announced the previous month was applied at 32.24 percent.

The new rate determined after the June inflation data is 32.03 percent.

HOW IS THE RENT INCREASE CALCULATED?

The increase rate applicable to residential rents is calculated based on the 12-month average change rate of the Consumer Price Index (CPI) announced by the Turkish Statistical Institute for the month preceding the month in which the increase will be made.

According to this calculation, the landlord can make an increase up to or below the 12-month average of the CPI. A rent increase above the determined rate cannot be made.

SAMPLE CALCULATION SHARED

According to the calculation method used for rent increases, for example, if the increase is to be made in October, the 12-month average change rate of the CPI announced by the Turkish Statistical Institute in September of the relevant year is taken into account.

News Source: 12punto