Reaction of real estate agents to the rent increase limit: It does not solve the problem, on the contrary, it escalates it

CEM YILDIRIM/ANKARA

The president of the Ankara Professional Chamber of Realtors, Hakan Akçam, regarding the decision of the 25 percent increase limit against the exorbitant increase in rents, said: “This cannot solve the problem. On the contrary, it makes the problems between the landlord and the tenant escalate.

Recalling that landlords and tenants often try to resolve their problems through reconciliation, Akçam said the following about the alternative formula for imprisonment, judicial fine or administrative fine prepared by the Ministry of Justice:

“There is information that penalties will be imposed for exorbitant rent increases and efforts are being made to impose fines and prison terms. In our opinion, I think it would be appropriate to do a study of scale determining the lower and upper limits in the cities in terms of determining exorbitant increases, and then introduce penalties.

Of course, I think that sanctions, fines or prison sentences can be effective. However, it should not be forgotten that supply and demand, which are the indispensable rules of the economy, determine prices. According to him, I think introducing legal rules is important to maintain balance.

‘CASES GO LONG’

The lawyers note that the tenant can sue against the exorbitant price claim, and the landlord can sue saying, “This is not the value of my house.” In such a case, the landlord can require a determination of the real value of the apartment, which results in litigation between the landlord and the tenant.

As a precautionary measure, the sale of land, residences and workplaces to foreigners should be stopped. According to the location, a price determination commission should be established jointly with local governments, the Ministry of Environment and Urban Planning and NGOs, and the current price should be established, which will follow the real estate identity of each house.

Taking construction costs into account, the exorbitant prices of materials, especially cement and concrete, must be checked and, if necessary, a temporary export ban imposed.

In addition to TOKİ, which has only been producing real estate for sale, municipal companies must be included in the system and their ability to rent must be emphasized.”