NEWSLETTER-2019-metin

217 LAW OF OBLIGATIONS by the lessees to take the deposit back under unjust enrichment provi- sions. Rent Increase – Article 344 of the TCO Article 344 of the TCO covers the rent increase topic, and sets the limit for the maximum increase applied by lessors. It states that if the parties agree on the rate of change under the lease agreement it, nevertheless, shall not exceed the twelve-month averages of the con- sumer price index. Likewise, if the parties do not agree upon the rate of change under the lease agreement, the next lease year’s rent will be determined by the judge using the principle of equity, provided that the rate of change shall not exceed the twelve-month averages in the consumer price index of the previous lease year. Therefore, for today, but except for Commercial Rent Relation- ships, any rent increase applied to lease agreements shall not exceed the twelve-month averages in the consumer price index of the previ- ous lease year; whereas, in Commercial Lease Relationships, there is no limit for to parties in which to determine the rate of change. Therefore, in practice, the lessors can rightfully set exorbitant increase rates, which are generally followed by revision requests by the lessees due to payment difficulties. Being effective from 1 July 2020, Article 344 of the TCO, which limits the increase in rental rates, will apply to Commercial Lease Rela- tionships, as well, and through this, any rate increase clauses as drafted under lease agreements, which, however, exceed the upper limit of the TCO , shall be deemed invalid. However, in order for Article 344 to be applicable to Commercial Lease Agreements, such agreements must come into effect after 1 June 2020, pursuant to Article 1 of the Law on the Enforcement and Application of the Turkish Code of Obligations numbered 6101. The said Article states that for any action regarding the subjects other than default, termination and liquidation are subject to the provisions of the law that is in force at that time.