Rental bill is criticized

 Landlords will have the right to visit the property to show it to prospective tenants and buyers or for maintenance and repair work.

A new law drafted by a commission of the Justice Ministry that revises the contractual obligations of landlords and tenants has been met with criticism for allegedly favoring landlords.

Parliament’s Justice Commission has begun deliberations on the draft law and 212 provisions out of a total of 649 have already been approved.

Dr. Nevzat Koç, dean of the law faculty at the Istanbul Commerce University, who heads the commission, refuted the allegations the draft law favored landlords and said the draft, the preparation of which took more than 10 years and involved more than 50 people, protected tenants but did not ignore the legal status of landlords.

The new draft envisages security deposits, not exceeding three month’s rent, to be paid back to the tenant with interest upon vacating the premises. Landlords will have the right to visit the property to show it to prospective tenants or for maintenance and repair work. The draft also grants landlords the right to unilaterally render void a contract that has been in force for more than 15 years.

The draft was prepared by a scientific commission operating under the jurisdiction of the Justice Ministry and was comprised of scientists, high court judges, lawyers and bureaucrats of the ministry.

Koç, in his role as head of the commission, attended the deliberations in Parliament. Other academics on the commission included Dr. Haluk Burcuoğlu, a lecturer of law at Istanbul University and Dr. Fikret Eren, law faculty lecturer at Başkent University.

Halil Ünlütepe, member of the Justice Commission and a deputy of the Republican People’s Party, or CHP, said the draft granted more rights to landlords and therefore he would demand changes to the draft.

Changes for landlords
The tenant will be responsible for the proper usage of rented premises and civil relations with neighbors. In the case of non-compliance the landlord will have the right to issue a written warning to render the contract void. If the tenant causes deliberate damage to the premises or causes excessive disturbance to neighbors, immediate cancellation of the contract will be possible.

The landlord, after giving due notice, will have the right to visit the rented property for maintenance work, potential sale or to show the property to a prospective tenant. If the landlord brings a handy-person in for urgent maintenance work, the tenant will not be able to deny the worker entry.

If the tenant fails to pay rent or utility bills, the landlord will have the right to terminate the contract after 30 days notice. Any increase in rent will not exceed the previous years’ Producer Price Index, or ÜFE. Currently landlords can increase rent without taking into consideration ÜFE for a period of three years. The draft will extend that period to five years.

Security deposits will not exceed three month’s rent. If the deposit is to be paid in cash, it will be deposited into a bank account, not to be withdrawn without the landlord’s permission. If the deposit is in the form of bonds or shares, it will be deposited in a bank safe. After the expiry of the contract, in the absence of any objection by the landlord, the bank will return the deposit to the tenant with accumulated interest.

With the exception of determining changes to rent, the contract cannot be altered to the tenant’s disadvantage.

Compensation possible
If the landlord evicts a tenant citing a personal need for the premises and consequently rents the property to someone else, the tenant will be entitled to seek compensation of one year’s rent.

The landlord will be responsible for delivering the premises to the tenant in a good condition and maintaining conditions for the duration of the contract.

The tenant will be able to deduct from the rent any expenses incurred for repairs to the premises without providing prior legal notice.

After the expiry of the contract, the tenant will have the right to demand compensation for any action that increased the value of the premises while the contract was valid.