Will Rent Contracts in Turkey Become e-Devlet?

important for both landlords and tenants; Lease contracts will be concluded in Turkey via the e-Devlet e-government portal soon!! 

A new era in lease contracts in Turkey! From now on, lease contracts will be concluded between the owner and the tenant through the Turkish government portal or what is known as e-devlet kapısı, according to the demands imposed by the government in its new plan to combat the illegal economy. What might result from such a step? 

First: Contracts will become standard:

Lease contracts will be standardized since the government will be monitoring them, so there will be no opportunity to add or remove formal clauses that will be determined by the government such as:

• Contract period "one year - two years - more"
• The agreed payment method "monthly - yearly"
• Payment date of each month or each year
• An undertaking to vacate in case of breach of the above-mentioned conditions
• and others..

Thus, there will be no bias or injustice to the landlord or the tenant, and the information will be specified in a clear and explicit manner, despite the different parties organizing the contract from the registered real estate companies.

Second: Excluding unregistered real estate agents:

This decision will throw all real estate brokers or agents who are not officially registered to the sidelines, and the contracts concluded through them will not be accepted until it is confirmed that they have a certificate of professional real estate competence or what is known as MYK Emlak Yeterlilik Belgesi after the implementation of this decision. 

Third: Adjusting the percentages of annual increase and utilization:

The notary will be compulsorily involved every time the contract is renewed, and the annual increase will be adjusted according to what is determined by the Turkish government.

Example: Khalil is renting an apartment with two bedrooms and a hall from Ahmed at a value of 4,000 Turkish liras, and the annual rate set by the government to increase the rents coinciding with the end of Khalil’s contract is “ 25% .” Thus, Ahmed will not be able to raise the rent more than 1,000 liras on Khalil because it is the percentage announced by the government . This will restrict the exploitative real estate owners and put an end to the annual increases in lease contracts.

When will the law be implemented? Does it include foreigners?

Yes, of course, the law will be applied to Turks and foreigners alike, as long as they are legally residing in Turkey under temporary protection or an official residence document. Even those who obtained Turkish citizenship from them, and the law will include them once it is applied between the year 2023 and the end of 2024.

Plan to combat the informal economy 2023-2025:

The decision to convert lease contracts in Turkey into e-Devlet is one of the government's steps to combat inflation and the informal economy within the 2023-2025 plan. As it will facilitate a lot of things for tenants and landlords, and will put an end to tax evasion from real estate gains, especially for those who have not registered the rental of their real estate units with the government. It will also result in:

Excluding employees and unregistered companies:

That is, it will not be enough for the company to have an official record with the Tax Department and the Chamber of Commerce only, but the company's employees must be registered with the Ministry of Labor and hold a MYK certificate.

Payment of fees through the bank:

Transaction fees for business owners in Turkey will be paid through banks, and secure payment transactions will be developed and used to make transfers for high-value transactions such as vehicle purchases, real estate ownership transfers, or crowdfunding via the payment service known as FAST.

Editing: Editing © Ramzy Real Estate Team