Good news for tenants from the Court of Cassation! Refund will now be based on current rent

The Court of Cassation has issued a notable ruling regarding security deposits that have lost value over time due to inflation and rent increases. According to the decision, the refund of a security deposit will be based on the current rent, not the initial amount paid.

The case that formed the basis of the ruling dates back to 1993. A person who moved into a property as a tenant on that date paid a security deposit of 15 liras to the landlord.

When the tenant moved out of the residence in 2014, they applied to the judiciary with the request that the deposit be refunded not at the same amount, but based on the current rental value. In its ruling, the Court of Cassation found the tenant's request justified and decided that the security deposit should be calculated according to the current rent.

HOW WILL IT BE APPLIED?

The ruling also included the calculation method for the security deposit refund:

1. The ratio between the rent at the beginning of the contract and the security deposit will be determined.

2. This ratio will be applied to the current rent at the time of eviction to calculate the amount to be refunded.

According to the example calculation; if the initial rent was 1,000 TL and the security deposit was 3,000 TL, the ratio is accepted as 1/3. If the rent increases to 20,000 TL at the time the tenant moves out, the security deposit to be refunded is calculated as 60,000 TL.

In the Court of Cassation's ruling, it was stated that “The security deposit to be paid to the tenant must be proportional to the rent paid and current.” In this direction, it was emphasized that the loss of value of the deposit paid years ago should be taken into account and the current rent should be taken as the basis in the refund process.

News Source: 12punto