Ministry rules out ‘rent in gold’ speculation after report

ANKARA

The Treasury and Finance Ministry has declared that landlords cannot set rent payments in gold, putting an end to the ongoing debate that arose after a landlord attempted to follow the same move.

Local media recently reported that a landlord stipulated a monthly rent of 7 grams of gold, an annual rent of 84 grams and a security deposit of $500 for his property in the capital Ankara.

Claiming that this was the most "reasonable and fair" system, the landlord’s unconventional practice sparked widespread discussion throughout Türkiye over the course of the week.

In a written statement issued on Aug. 29, the ministry clarified that contracts stipulating rent payments in gold contravene regulations and could lead to grievances.

"It is established by law that individuals residing in Türkiye cannot agree upon payments in foreign currency or index payments to foreign currency in real estate lease contracts concerning immovable properties, including residential and commercial properties, located within the country,” the ministry said.

It emphasized that this prohibition on foreign currency payments also extends to gold.

In the much-discussed case, landlord Ali Duman asserted that the rent would be calculated each month by multiplying the price of 7 grams of gold by the prevailing rate at the Grand Bazaar on the 15th of the month.

“Otherwise, I have no intention of renting out my property. The laws concerning rent are entirely against the interests of landlords; tenants, even when they own property themselves, can lease a house and exploit landlords,” he remarked.

The rapid rise in rents over the past three years has left many landlords and tenants in a series of deadlocked disputes, some of which have ended up in court.