Important Announcement: Homeowners and Tenants, Countdown Begins for 25% Rent Increase Limit
Minister of Treasury and Finance Mehmet Şimşek recently addressed concerns regarding the possible removal of the 25 percent increase limit on rent. He stated that without a regulation to extend this limit, it may be eliminated in July, adding that there are currently no plans to implement such a regulation.
With this potential change on the horizon, experts are weighing in on the expected impact on rental prices. Real estate expert Sebahattin Aslan pointed out that the removal of the increase limit could lead to differences between new and existing tenants, potentially resulting in landlords setting different rental fees for each. However, Aslan emphasized the importance of fair treatment for all tenants and called for any adjustments to rental fees to be fair and balanced.
While some anticipate a rise in rental prices following the removal of the limit, experts note that the actual movement in prices will depend on various market factors such as demand, supply, and economic conditions. To maintain a balance between tenant and landlord interests, experts recommend a fair and measured approach to rent increases, considering economic indicators like the Wholesale Price Index (WPI).
In light of these potential changes, experts stress the importance of landlords making reasonable and fair requests for rent increases. It is advised for landlords to consider economic conditions, market trends, and tenants’ financial capabilities when adjusting rental prices, to avoid potential disputes.
Furthermore, while there may be expectations of a decrease in housing prices, experts suggest that this is unlikely to impact rental prices, with a more probable scenario being an increase in rents. Additionally, the removal of the increase limit is expected to stimulate investment in housing purchases, offering investors more flexibility and potential returns.
Overall, the potential removal of the 25 percent increase limit on rent may lead to changes in the rental market. As stakeholders navigate these potential shifts, it is crucial for all parties to approach rent adjustments with transparency, fairness, and consideration for the rights of tenants.
