Landlords demand additional guarantees from tenants

ISTANBUL

The expiration of a 25 percent cap on rent increases has led to a dramatic surge in rental prices and landlords now are demanding additional guarantees from prospective tenants, including credit card information, debt research and a letter committing to eviction if necessary.

“They definitely want a guarantor,” Rıdvan Akgün, the head of the İzmir Real Estate Club Association, said.

With the cap no longer in effect as of July 1, rental prices have reportedly increased by approximately 65 percent.

Akgün highlighted that while landlords have been unhappy with the previous cap, tenants are now struggling with the sudden spike in costs. “The 25 percent rent increase cap continued for two years. Landlords were unhappy, and tenants were happy. Two years ended quickly. Tenants faced a 65.07 percent increase rate as of this month,” he stated.

The rental market has been thrown into turmoil, with many tenants unable to afford the new rates. “There is desperation. Those who do not get an increase are trying to leave the house. Those who are unable to pay are trying to hold on to a new life. Tenant-landlord problems are getting out of hand,” Akgün explained.

Akgün shared that the price for an average apartment in İzmir now ranges between 15,000 and 30,000 Turkish Liras ($455-$900), with potential increases up to 20,000 liras if the property is empty.

“Landlords who have been waiting for two years have raised the figures, He [the landlord] wants even the 0.07 out of the 65.07 percent. Evictions may be on the agenda. Mediators and lawyers can participate in the process,” Akgün noted.

The rise in rental prices is attributed to the high demand for housing, as there is a limited supply of available apartments.

“There is no supply, the demand is too high. People are either getting married or divorced. Tenants who have problems with property owners are evicted. There is a serious circulation in the rental sector,” Akgün remarked.

He emphasized the role of property owners in determining rental prices, pointing out that they have significant control over the market. “Most of the property owners determine the rental prices themselves. There are those who ask 35,000 or 40,000 liras for an apartment valued at 15,000.”

The rapid increase in rental prices and stringent demands of landlords have left many tenants in a precarious situation. Akgün expressed hope for a resolution that considers the well-being of tenants amidst the rising market pressures.