Rent hikes for existing tenants surpass new listings

In the real estate market, the combination of high inflation and rising rental prices has created a significant disadvantage for existing tenants. With the removal of the 25 percent rent increase cap that was in place during the previous period, landlords have begun setting rents according to market conditions. However, this situation has led to rent hikes for existing tenants surpassing the rental prices found in new listings.

According to a report by Mahmut Keşan from Ekol TV, existing tenants are struggling to move to more affordable rental apartments due to high moving costs. Tenants who do not want to pay a new security deposit are facing the high expenses of moving. As a result, many tenants are forced to continue paying the increased rates.

HIKES REACHING UP TO 100 PERCENT

Real Estate Expert Şenay Araç stated, “While the price increase in rental housing has been around 42 percent, the rate of increase applied to existing tenants has varied between 95 percent and 100 percent.” This rate significantly impacts existing tenants, making the moving process difficult.

MARKET TO BECOME ACTIVE IN APRIL AND MAY

Şenay Araç evaluated the situation in the real estate market as follows: “Moving costs are currently quite high. However, the market will become active in April and May, and with the decrease in the number of rental homes, the old system will become functional again. With the start of the rental season in these months, there may also be a correction in rental housing prices.”

News Source: 12punto