Fixed Exchange Rate On Rents Introduced

North Cyprus News - Bank - signThe government has introduced a new rule affecting those who pay rent in foreign currency. This measure has been necessary because of the ever weakening Turkish Lira and fluctuations in foreign exchange rates, Kibris Postasi.

According to the new decision, the US Dollar was fixed at 10 TL, the Euro at 11 TL, and Sterling at 12 TL. This decision will be valid for three months.

The article goes on to say however, that according to the Cyprus Real Estate Centre, not all landlords may agree to cap rent according to the fixed exchange rate and that it is necessary to get the landlord’s agreement before assuming that rental payments will be fixed. In which case rent payments need to be documented by paying via the post office, naming the landlord and giving the address or paying into a the landlord’s Turkish Lira bank account.

If your landlord accepts, there is no problem, but if he does not, there are some precautions you need to take.

If your landlord says “I want my rent at the current rate“, either pay via into your landlord’s Turkish Lira bank account or make your payment via the post office, by registered letter, in order to use the right to fix the rate given to you by the state.

When sending, you should state the name of your owner, for example, the rent debt for December as a description, and add a note with the full address.

Because historical examples show that some owners do not accept the exchange rate being fixed, they can dodge the issue in various ways.

For example, avoiding communication with the tenant, and even closing his Turkish Lira account, thus avoiding receipt of the rent money. This then gives the landlord the right to evict.

Legally it is essential that the tenant does not miss the rent day. So if the rent is sent via the bank, the tenant must ensure he has a receipt for the transaction.

If the tenant cannot reach the landlord in any way, the tenant should secure his position legally by sending a notice from a law firm giving the message that the rent money is ready to be received in order to secure himself legally.

For further details click here Kibris Postasi

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