The Fort Worth Press - Turkey inflation woes pit tenants against landlords

USD -
AED 3.673042
AFN 68.345223
ALL 91.574579
AMD 389.145335
ANG 1.812375
AOA 912.503981
ARS 999.314589
AUD 1.519295
AWG 1.8
AZN 1.70397
BAM 1.823845
BBD 2.030401
BDT 120.165991
BGN 1.8241
BHD 0.379074
BIF 2968.993332
BMD 1
BND 1.329137
BOB 6.964144
BRL 5.737904
BSD 1.005642
BTN 84.841703
BWP 13.337063
BYN 3.290903
BYR 19600
BZD 2.02695
CAD 1.39318
CDF 2866.000362
CHF 0.875866
CLF 0.034749
CLP 958.828741
CNY 7.179204
CNH 7.119295
COP 4328.157784
CRC 514.384296
CUC 1
CUP 26.5
CVE 102.82557
CZK 23.557404
DJF 179.073996
DKK 6.957104
DOP 60.558586
DZD 133.324008
EGP 49.274957
ERN 15
ETB 124.505712
EUR 0.932604
FJD 2.238204
FKP 0.765169
GBP 0.774144
GEL 2.720391
GGP 0.765169
GHS 16.491817
GIP 0.765169
GMD 71.503851
GNF 8668.811489
GTQ 7.773581
GYD 210.388399
HKD 7.77435
HNL 25.372313
HRK 6.88903
HTG 132.326199
HUF 379.790388
IDR 15654.85
ILS 3.74981
IMP 0.765169
INR 84.38315
IQD 1317.293794
IRR 42092.503816
ISK 138.740386
JEP 0.765169
JMD 159.54679
JOD 0.709104
JPY 152.65504
KES 129.715112
KGS 86.203799
KHR 4083.55481
KMF 460.375039
KPW 899.999774
KRW 1398.203789
KWD 0.30667
KYD 0.837973
KZT 495.034271
LAK 22070.219611
LBP 90051.475731
LKR 294.204318
LRD 190.562783
LSL 17.597892
LTL 2.95274
LVL 0.60489
LYD 4.879937
MAD 9.930713
MDL 18.035156
MGA 4652.398937
MKD 57.45792
MMK 3247.960992
MNT 3398.000028
MOP 8.051942
MRU 40.06248
MUR 46.403741
MVR 15.450378
MWK 1743.740383
MXN 20.176204
MYR 4.382504
MZN 63.903729
NAD 17.597892
NGN 1668.080377
NIO 37.002844
NOK 10.999904
NPR 135.746724
NZD 1.676306
OMR 0.384818
PAB 1.005642
PEN 3.771996
PGK 4.036928
PHP 58.455038
PKR 279.24409
PLN 4.03435
PYG 7863.104397
QAR 3.6669
RON 4.641704
RSD 109.153038
RUB 97.915792
RWF 1378.467851
SAR 3.755989
SBD 8.340754
SCR 13.420525
SDG 601.503676
SEK 10.813404
SGD 1.325604
SHP 0.765169
SLE 22.850371
SLL 20969.496802
SOS 574.719075
SRD 34.97037
STD 20697.981008
SVC 8.799366
SYP 2512.530268
SZL 17.593137
THB 34.215038
TJS 10.689514
TMT 3.51
TND 3.122208
TOP 2.342104
TRY 34.340368
TTD 6.83359
TWD 32.250367
TZS 2684.944281
UAH 41.514524
UGX 3680.701264
UYU 42.010538
UZS 12858.674873
VEF 3622552.534434
VES 44.647491
VND 25275
VUV 118.722039
WST 2.801184
XAF 611.700471
XAG 0.029645
XAU 0.000367
XCD 2.70255
XDR 0.753952
XOF 611.700471
XPF 111.21369
YER 249.825037
ZAR 18.463855
ZMK 9001.203587
ZMW 27.377256
ZWL 321.999592
  • RBGPF

    61.4000

    61.4

    +100%

  • RELX

    0.3200

    47.98

    +0.67%

  • SCS

    0.0600

    13.14

    +0.46%

  • RYCEF

    0.0100

    7.15

    +0.14%

  • RIO

    -3.0400

    64.43

    -4.72%

  • BTI

    -0.0100

    35.39

    -0.03%

  • NGG

    -0.3600

    63.94

    -0.56%

  • GSK

    -0.3700

    36.29

    -1.02%

  • CMSC

    0.1600

    24.84

    +0.64%

  • JRI

    0.1600

    13.53

    +1.18%

  • BCC

    1.4700

    142.32

    +1.03%

  • VOD

    -0.0100

    9.31

    -0.11%

  • BCE

    0.3000

    28.37

    +1.06%

  • AZN

    -0.2000

    64.49

    -0.31%

  • CMSD

    0.2350

    25.125

    +0.94%

  • BP

    -0.8800

    28.93

    -3.04%

Turkey inflation woes pit tenants against landlords
Turkey inflation woes pit tenants against landlords

Turkey inflation woes pit tenants against landlords

Kicked out in the middle of a harsh Turkish winter, 30-year-old Erdem Yilmaz calculated that he spent two and a half months' salary to urgently relocate to a new home in Istanbul.

Text size:

The father of a two-year-old is not the only Turk in this situation after last year's currency crisis.

Disputes between homeowners and tenants have risen sharply in recent months in Turkey after annual inflation reached nearly 50 percent in January, the highest since April 2002 and may well reach a new peak on Thursday when new monthly data will be published.

In the same period, rents have exploded by 85 percent in Istanbul and by 69 percent at the national level, according to analysis by Bahcesehir University.

But salaries have not risen at the same pace, with most increasing by between 30 and 50 percent on average in January.

"We shouldn't have had to leave," lamented Yilmaz, who works as a receptionist, upset at his former landlord who claimed he wanted the property back for his son.

"He harassed us. My family had no peace," he added.

Yilmaz is even angrier because he said the landlord's son did not move into the apartment.

"I saw an advert (for the flat) on the internet a week after we left," he said, showing a photo of the advert.

The rent is now 2,600 Turkish liras ($190, about 170 euros), compared with the 1,100 liras ($80) paid by Yilmaz.

- Rising legal disputes -

To add insult to injury, Yilmaz's new home will cost him 2,000 liras ($146), half of his salary, and is located in "a remote corner, in an old building that is hard to heat and without a lift," he said.

Yilmaz's dispute has not hit the courts but legal cases between tenants and property owners are now the biggest single issue processed by Turkish courts.

They represent 20 percent of cases, compared to 10 percent a year ago, according to financial daily Dunya.

President Recep Tayyip Erdogan's unorthodox policies, as well as the weakening lira are contributing to inflation.

Central banks normally raise rates to tame inflation but Erdogan vehemently opposes high interest rates, claiming they are the "mother and father of all evil" and cause high inflation.

The Turkish lira lost 44 percent of its value against the dollar last year.

AFP spoke to 12 tenants who described being forced to leave their apartments in the same way as Yilmaz, or who have suffered rent increases of over 100 percent, five times higher than the legal limit in Turkey.

Turkish law stipulates that, under a tenant's contract renewed in February, a landlord cannot increase the monthly rent above 22.6 percent, a figure calculated using base inflation.

The law also restricts evictions, but tenants said they gave in to pushy or threatening landlords.

In January, an Istanbul man in his 90s was filmed by a neighbour using an axe to break down his tenants' door after they refused to pay their rent, which suddenly rose from 1,200 to 4,000 liras.

"The rise in rents is pushing property owners to seek the recovery of their homes to put them back on the market" at distinctly higher prices, according to lawyer Hanife Emine Kara, a specialist in real-estate law who has seen the number of cases rise.

- 'Illegal and opportunistic' -

Property owners pushing for three-figure rent increases argue that official inflation data does not reflect the reality, a claim supported by some independent Turkish economists who say inflation reached over 110 percent in January.

"We live in a period in which owning a home or renting cheap accommodation is a luxury," said Mehmet Bulent Deniz, head of the Turkish Consumers Union Federation.

However, some landlords try to find a balance.

"We have agreed to 35-percent increases. There needs to be a happy medium," said Hakan Yildiz, who owns three properties in Istanbul.

Some tenants, such as Emrullah Comran, refuse to accept, on a matter of principle.

In January, Comran's landlord wanted to increase his rent by 58 percent.

"I'm in a good financial situation, I could have paid but I refused because they did this in an illegal and opportunistic manner," said the 30-year-old, who runs a small metalworking business in Antalya, southern Turkey.

"We have 12 employees and we gave them a pay rise of 45 percent on average this year. But no one has received a 58-percent raise. Nobody," he insisted.

In response to his landlord, Comran sent his rent by wire transfer with an increase he set himself.

"The official rate is 22.6 percent, so I went a little above that, to 23 percent," he said.

"I have not heard back from them yet."

W.Matthews--TFWP