Real Estate

European model solution for high rent prices: Rental house companies are coming

After President Recep Tayyip Erdogan’s message of fighting against exorbitant prices for shopping and basic needs, new evaluations were made about accommodation outside the markets. Action was taken for the abnormal rise in rent prices. The government is focusing on the home rental company model as in Europe. It is also on the agenda for construction companies to build houses to rent. Accordingly, there will be rental flats that are not homeowners, the addressee will be companies and they cannot be sold. Here is the last minute information about new homes and rental companies.

The button was pressed for the rental apartment model that will put an end to the high rent. According to the last minute information, the government pressed the button for the sudden increase in rental prices, which SABAH had insisted on for a while. As in Europe, the focus is on the model of home rental companies. With the study, it is aimed to create a legislation that will enable construction companies to build houses to rent.

NEW SOLUTION TO ABNORMAL RENTAL INCREASES AND EUROPEAN MODEL FOR RENT HOUSES

Increasing housing demand in response to the decreasing supply of new housing, marriages postponed due to the epidemic, the resumption of face-to-face education, and opportunistic landlords added to the demand for rental housing created by urban transformation, house rents have recently multiplied. Researches revealed that rents in 81 provinces have increased by 55% on average in the last year. Especially in university provinces such as Bursa, Konya, Erzurum and Samsun, rents have increased by more than 50% in the last year. The deputies conveyed the rent problems in the provinces to the relevant institutions, especially the Ministry of Treasury and Finance. Work has been started to solve the problem. A proposal package with alternatives will be prepared in a short time and presented to President Recep Tayyip Erdogan.

EUROPEAN MODEL

The studies focused on the European model. In the vast majority of western countries, especially in Europe, rental houses belong to companies, not individuals. Companies receive their rents within the framework of contracts they make with citizens. Since the houses belong to the companies, there are no situations such as removal in a short time.

HOUSE TO BE BUILT FOR RENT

Within the scope of the study, it is thought that this model will be adapted to Turkey as well. However, there are problems in terms of legislation and taxes before construction companies let the houses they build instead of selling them. With the study, it is aimed to create a legislation that will enable construction companies to build houses for rent. In Europe, companies rent rental houses within the framework of contracts they make with citizens. Since the houses belong to companies, it is not possible for the citizen to be removed from the flat in a short time.

SABAH DREW ATTENTION

SABAH drew attention to the increase in house rents many times. At the beginning of the week, Endeksa.com had published the results of its research in Turkey’s 81 provinces. According to the research, between August 2020 and August 2021, rents increased by 55% across Turkey. The first three provinces with the highest rent increases were Nevsehir, Mus and Batman.

The research also showed that the rents in the university provinces of Bursa, Konya, Erzurum and Samsun increased by more than 50% in one year. Hakkari and Tunceli were the provinces where rental house prices never increased.

Source: Sabah / Translated by Irem Yildiz

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