How Much Was the March 2020 Rent Increase? Landlords preparing to raise rents in March have finally seen the expected figures. According to available data, landlords wondering how much they can increase rent under lease agreements in March 2020 have begun to research the applicable percentage. The rent increase calculation depends on TEFE and TÜFE rates, and tenants and landlords alike closely follow these figures.
It is a well-established practice that rent increases are determined on paper according to the TEFE and TÜFE rates. As usual, landlords may opt to apply a smaller increase or no increase at all; the maximum allowed rate is what the published indices set, but the final decision often depends on the agreement between landlord and tenant.
How Much Will the March 2020 Rent Increase Be?
How Much Will the March 2020 Rent Increase Be? For February 2020, the combined TEFE–TÜFE-based rent increase rate was 14.52%. For March 2020, the consumer price index (TÜFE) showed a yearly increase of 12.37% and a monthly increase of 0.35%. In February 2020, TÜFE rose 0.35% compared with the previous month, 1.71% compared with December of the previous year, 12.37% compared with the same month of the previous year, and the 12‑month average rose 13.94%.
Based on these figures, landlords may apply a 13.94% rent increase for March 2020. The annual average TÜFE over the 12 months announced in the month following the lease expiry is used to calculate the permitted annual rent increase. For example, a tenant whose lease expires in January must pay the revised rent with the increase applicable for February. The increase for February is calculated using the 12‑month TÜFE average published by TÜİK for January 2020; that average determines the February 2020 rent increase percentage to be applied to the rent.
The 12‑month TÜFE average taken from the January 2020 TEFE–TÜFE figures sets the ceiling for the rent increase applicable in February 2020; this ceiling represents the maximum increase a landlord can lawfully demand. Landlords and tenants can agree on a lower, mutually acceptable increase instead of applying the maximum. Legally, parties should reach an agreement that does not exceed the 12‑month TÜFE figure, observing the statutory limit and mutual consent when determining the rent adjustment for 2020.