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Rent Allowance’s Increase for August 2017

: 2017-08-07

Rent Allowance’s Increase for August 2017
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Lease contracts are renewed in Turkey each year based on the determination of the rate of increase in the rental allowance taking into account the month of signing the contract. In this context, the rate of increase that landlords can claim from their tenants is determined in August 2017.

The rate of addition is added to the rental allowance based on the month on which the date of signing the contract is signed. This percentage is also applied to those wishing to extend the lease and not to cancel it.

The rate of increase in this regard is announced by the Turkish Statistical Institute every month based on economic inflation rates. Also based on calculations made in this context, the ratio will be 10.94 percent for August. So that real estate owners can apply this percentage to the tenant in the absence of any other percentage except this percentage within the contract.

The monthly consumption index increased in August 2017 by 0.72, which is an important factor in obtaining the final result of the increase that will be applied to the rent allowance as well as the inflation.

An average of 12 months is taken between the month in which it is calculated and the 12 months preceding this month in order to calculate the average increase that will be applied to the amount and in which will be determined as an increase.

The following is a sample of the percentage calculation of rent related to a property and based on this new ratio:

Let’s say the rent agreed upon between the lessor and the tenant to be in the form of 1000 TL. In this case, the corresponding amount of the increase will be 109.4 Turkish liras. The total amount to be paid is TRY 1,109.4.

If the landlord exceeds this percentage and claims a high amount that cannot be paid by the tenant. In such a case the tenant can object to that and resort to the court in order to open a prosecution in this context. The courts of conciliation and punishment are responsible for such judicial proceedings.

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