THE CONCEPT OF RENT DETERMINATION UNDER TURKISH LAW

Under the Turkish Code of Obligations, lease agreements may be arranged as either fixed-term or indefinite-term contracts. In practice in Turkey, residential and roofed commercial lease agreements are frequently concluded for a period of one year. Unless terminated by either party, these agreements are automatically extended for successive one-year terms. In such lease agreements, while it is possible for the parties to freely agree on the rent amount for the renewed period, even in the absence of an agreement, the rent increase rate to be applied for the renewed lease year is determined in accordance with Article 344 of the Turkish Code of Obligations.

Pursuant to this provision, the rent increase rate in Turkey may not exceed the twelve-month average change rate of the Consumer Price Index (CPI). Therefore, at the end of the first lease year, since the rent will be increased within this legal limitation, there is no need for a separate rent determination.

However, if a lease agreement in Turkey is renewed by the parties for five years or more, the landlord may raise a demand to re-determine the rent amount. At this point, the third paragraph of Article 344 of the Turkish Code of Obligations becomes applicable, allowing the landlord to request a new rent amount to be determined based on the current market rent if the lease has exceeded five years. This type of determination is made by taking into account the current rental values of other comparable properties.

In this case, two different paths may be followed:

1. Agreement between the parties on rent adjustment in Turkey:
   The tenant and the landlord may, through mutual consent, agree on what the new rent amount will be for the upcoming period in Turkey. In this case, the rental relationship continues based on the newly agreed rent.
2. Judicial rent adjustment in Turkey: If the parties fail to reach an agreement, the landlord (or in some cases, the tenant) may file a rent determination lawsuit before the court in Turkey to request the determination of the rent amount. In such court proceedings, the court will determine a fair rent based on comparable rental prices in the area where the property is located, economic conditions, and the specific characteristics of the property.

In conclusion, the institution of rent price determination in Turkey arises particularly from the landlord’s need to adjust the rent to the current market conditions in long-standing lease relationships. It is regulated within the framework of Turkish law in order to maintain a balance between the parties and ensure a fair rental relationship.

• How Is Rent Determination By Mutual Agreement Conducted In Turkey?

Pursuant to Article 344/3 of the Turkish Code of Obligations, if a lease agreement is extended beyond five years, the landlord becomes entitled to request the rent to be re-determined in line with the current market value. At this point, rent determination in Turkey may be carried out by mutual agreement between the parties.

1. Freedom of Contract Regarding Rent Adjustment in Turkey

In accordance with the principle of freedom of contract, the parties are free to structure the rental relationship as they see fit in Turkey. In lease agreements that have lasted for five years or longer, either the landlord or the tenant may request a new rent amount based on current market conditions. Reaching an agreement without resorting to court proceedings is important both for shortening the legal process and for protecting the mutual interests of the parties.

2. Form of Rent Price Determination Agreement in Turkey

In lease relationships that have continued for five years or more, the parties have the right to agree—either verbally or in writing—on the new rent for the upcoming rental period. The Turkish Code of Obligations does not prescribe a specific form requirement for such agreements, meaning verbal agreements are also legally valid. However, proving a verbal agreement may be difficult, which is why a written document is strongly recommended in practice.

A written agreement both clearly records the consensus between the parties and serves as evidence in the event of future rental price disputes in Turkey. In this context, the rent adjustment in Turkey should be documented with clear and precise language, making reference to the previous lease agreement, such as:

“Pursuant to the existing lease agreement between the parties, only the rent amount has been re-determined for the new term.”

Advantages of Written Rent Determination Agreements in Turkey:

• Prevention of rental price disputes in Turkey: Ensures that the agreed rent is not open to future debate, thereby helping to prevent potential rent dispute resolution in Turkey.
• Ease of proof: Even if one party denies the agreement, the written document can be submitted to court as evidence in case of a rental value dispute in Turkey.
• Preservation of contract status: When clearly stated that only the rent amount has changed and all other terms remain valid, it guarantees that a new lease agreement has not been formed, but rather that the existing one continues.

In conclusion, when an agreement is reached through mutual consent on rent determination in Turkey, and this agreement is documented in writing, it both protects the ongoing lease relationship and minimizes future legal risks.

3. The Legal Nature of Rent Determination Agreements in Turkey

If the parties have only reached an agreement regarding the new rental amount, this does not alter the other provisions of the existing lease agreement in Turkey. Such an agreement is considered a continuation of the current contract and is not regarded as a new lease agreement under Turkish law. However, if changes are made not only to the rental amount but also to other elements such as the payment date, usage conditions, security deposit, or eviction date, then it shall be deemed that the parties have established a new and independent lease agreement, separate from the previous one.

Therefore, when drafting an agreement between the parties regarding rent adjustment in Turkey, it is essential to make an explicit reference to the previous lease agreement and to clearly state that the update pertains only to the rental amount. Such wording creates a presumption that the agreement is limited strictly to rent adjustment, and that all other terms and conditions of the original lease remain fully valid. For this reason, obtaining assistance from a rental law attorney in Turkey before entering into any agreement regarding rent determination would be beneficial to protect the rights of the parties.

4. Rent Determination Through Actual Payment and Implied Acknowledgement

Even in the absence of an express written or verbal agreement between the tenant and the landlord, if the tenant begins to pay rent at the new amount demanded by the landlord, and the landlord does not object to these payments, this constitutes an implied acknowledgment. In such cases, it is presumed that the parties have agreed on the new rental amount for the upcoming lease term in Turkey, and there is no need to initiate a lawsuit. In particular, making payments at the new rate over an extended period will serve as strong evidence supporting this implied agreement.

5. Practical Precautions Regarding Rental Price Disputes in Turkey

Agreements made between the parties regarding rental value dispute in Turkey should include certain points of attention in order to prevent potential disputes in the future:

• The agreement for rent determination in Turkey should be made in writing and, if possible, certified by a notary public.
• The written text should include an explicit reference to the previous lease agreement and should clearly state that only the rental amount is being updated.
• The parties’ intentions must be expressed clearly and unambiguously.
• To facilitate proof of actual rent determination, the payment description section of the tenant’s bank transfers may include a note such as “Updated rental amount for the 2025–2026 period.”

Reaching a mutual agreement in rent determination in Turkey helps the parties avoid time-consuming and costly rent dispute resolution in Turkey, ensuring the peaceful continuation of the rental relationship.

However, the validity and scope of such agreements must be legally defined with care; one must keep in mind that when the agreement only concerns the rental amount, it does not constitute a new lease agreement, but if other matters are also amended, a new lease contract may be deemed to have been formed. For this reason, it is of great importance that parties structure their agreements in a way that provides legal security.

• How Is Rent Determination Conducted Through Court in Turkey?

In Turkey, judicial rent determination is a legal remedy sought when the parties are unable to agree on the rental amount. In such cases—especially when the lease agreement has been in effect for five years or more—either party may apply to the court and request that the rental amount be re-evaluated based on comparable properties. This legal action is referred to in Turkey as a “rent determination lawsuit”.

1. What Is a Rent Determination Case in Turkey?

A rent determination case in Turkey is a legal process initiated to determine a fair and current rental amount between the tenant and the landlord, particularly in light of changing economic conditions and market values. This lawsuit becomes relevant when the parties fail to reach a mutual agreement on the appropriate rent and plays a crucial role especially in long-term lease relationships.

Rent determination lawsuits in Turkey are only applicable to residential and roofed commercial property leases, as regulated under Article 344 of the Turkish Code of Obligations. Such lawsuits cannot be filed for land, fields, unregistered properties, properties with Ottoman title deeds, vehicles, or other movable assets. Therefore, it is essential to obtain accurate information regarding the nature of the property, and consulting a real estate lawyer in Turkey is highly recommended in such situations.

In particular, for lease agreements lasting five years or more, either party may request the court to recalculate the rental amount based on comparable properties, regardless of whether there is an existing agreement between the parties.

These lawsuits are solely for the purpose of determining the rental amount and do not include any claims related to rent receivables. Consequently, court decisions regarding rent adjustment in Turkey cannot be enforced via judgment-based execution proceedings. If the landlord wishes to claim outstanding rent based on the newly determined rental amount, a separate lawsuit for rent receivables must be filed or a collection process must be initiated under general provisions.

In conclusion, a rent determination lawsuit in Turkey provides an objective and judicial solution to adjust the rental amount according to current market conditions. During this process, the court evaluates expert reports, comparable rental rates, and property characteristics, including title deed records, mortgage information, and other relevant data, in an effort to determine a fair and equitable rental amount.

2. What Are the Conditions for Filing a Rent Determination Lawsuit in Turkey?

A rent determination lawsuit in Turkey is a legal action that can be initiated by either the tenant or the landlord, with the main objective of recalculating the rental amount in line with current market conditions and in a fair manner. If the landlord has passed away, the legal heirs, upon the transfer of inheritance under Turkish inheritance law, become parties to the lease agreement and are therefore entitled to file a rent determination case in Turkey.

This type of lawsuit, which can be filed under the provisions of the Turkish Code of Obligations (TCO), produces legal consequences only if certain conditions are met. Although in theory a lawsuit can be filed at any time, specific requirements such as the duration of the lease, form of notification, and nature of the agreement must be considered for the lawsuit to be valid.

a) Existence of a Valid Lease Agreement in Turkey

To initiate a rent review lawsuit in Turkey, there must first be a valid lease agreement between the parties. This agreement may be written or verbal; however, for evidentiary purposes, written contracts are preferred in practice. Without documents proving the existence of a rental relationship in Turkey, it is not possible to file a rent determination lawsuit.

b) Existence of a Legitimate Legal Interest

According to the TCO, a legitimate legal interest is required to file a lawsuit. This refers to a legitimate and legally protected benefit that the plaintiff seeks to obtain through the lawsuit. The court will assess whether the plaintiff has a concrete need for rent determination. If this legal interest is not found, the court will dismiss the lawsuit on procedural grounds.

c) Five-Year Duration of the Lease Agreement in Turkey

One of the key conditions in rent determination cases in Turkey is that the rental relationship must have continued for five years or more. Pursuant to Article 344/3 of the Turkish Code of Obligations, rent cannot be determined by the court based on market conditions before the five-year term has elapsed. For rental periods shorter than five years, only limited increases based on the Consumer Price Index (CPI) are applicable. However, for rental contracts exceeding five years, a lawsuit can be filed even in the absence of an agreement between the parties.

d) Requirement of Written Notification (Notice)

If the landlord intends to file a rent increase lawsuit in Turkey to take effect at the end of the lease term, they must send the tenant a written notice (ihtarname) at least thirty (30) days before the end of the lease period. This notice serves to communicate the landlord’s intent to alter the rental amount for the upcoming term.

The notice may be delivered through a notary public or in accordance with the provisions of the Turkish Notification Law. Although there is no specific form requirement, what matters is that the notice is in writing and delivered in a timely manner. The notification must explicitly request a rent increase and clearly state the proposed new rental amount. However, if the lease agreement already contains a provision regarding rent increases for renewed terms, then sending a prior notice is not necessary before filing a rent determination case in Turkey.

A rent determination lawsuit in Turkey is a special type of legal action that can be filed only when the conditions set forth by law are met. For a lawsuit to be valid, the following must be ensured: the existence of a valid lease, the presence of a legal interest, the passage of a five-year lease period, and the delivery of timely written notification.

Failure to comply with these conditions may lead to dismissal of the lawsuit or an erroneous judgment due to an incomplete legal review. Therefore, especially for landlords, it is strongly recommended to seek legal advice in Turkey before initiating this process and to act in full compliance with legal requirements, thereby minimizing the risk of rent dispute resolution in Turkey.

3. How to File a Rent Revaluation Case in Turkey?

A rent revaluation case in Turkey is filed before the Civil Court of Peace located in the jurisdiction where the property is situated, if the tenant and the landlord fail to reach an agreement regarding the rental amount. However, as of September 1, 2023, a mandatory mediation process has been introduced as a prerequisite before initiating a lawsuit.

Accordingly, the following legal steps must be followed to file a rent determination lawsuit in Turkey:

a. Application to a Mediator Before Filing a Rent Review Lawsuit (Mandatory Prerequisite)

As of September 1, 2023, pursuant to the amendments to the Law on Mediation in Civil Disputes No. 6325, mediation has become a mandatory condition before filing lawsuits related to rental law in Turkey. In this context, before filing a rent determination case in Turkey, one of the parties must initiate the process by applying to the mediation office located at the courthouse.

b. Completion of the Mediation Process for Rent Determination in Turkey

With the assistance of a mediator, the parties attempt to reach a mutual agreement on the new rental amount. If an agreement is reached during mediation, this becomes legally binding, and filing a rent determination lawsuit is no longer necessary. However, if the parties fail to reach an agreement, the mediator issues an official “non-settlement report”, which then allows the parties to proceed with filing a rent review lawsuit in Turkey.

c. Filing the Lawsuit by Submitting a Petition to the Court

If the mediation process ends without settlement, the landlord or tenant may submit a petition to the relevant Civil Court of Peace to file the rent determination lawsuit in Turkey. The petition should include:

• Information about the parties and the lease agreement,
• Duration of the rental relationship,
• Payment receipts or bank statements proving rental payments,
• Comparable rental values,
• Details of the property (e.g., title deed information),
• Specific requests regarding the rent adjustment.

In addition, the official non-settlement report from the mediation process must be attached to the petition.

d. Payment of Court Fees and Expenses

To proceed with the lawsuit, the required court fees and litigation expenses must be fully paid. Fees vary depending on the type of case, but proportional (ad valorem) fees apply in rent determination lawsuits in Turkey.

• If the plaintiff seeks determination of the monthly rental amount, the fee is calculated based on the monthly rent difference.
• If the determination is sought for the annual rental amount, the fee is based on the annual rent difference.

Incomplete or late payment of court fees may result in the dismissal of the rental price adjustment case in Turkey.

4. When Can a Rent Determination Lawsuit Be Filed in Turkey?

The timing of a rent determination lawsuit in Turkey depends on the duration of the lease agreement and the provisions contained within the contract. Pursuant to Article 344 of the Turkish Code of Obligations, different legal procedures and evaluation criteria apply to rental agreements shorter than five years and those lasting five years or longer. Therefore, accurately determining the duration of the lease agreement before initiating a rent adjustment lawsuit in Turkey is of critical importance.

a. Timing of Filing a Rent Determination Lawsuit in Lease Agreements of Five Years or More in Turkey

If the lease relationship has exceeded five years, and no agreement has been reached between the parties regarding a new rental amount, the lessor or the lessee may file a rent determination lawsuit in Turkey to adjust the rent in accordance with current market conditions.

According to Article 345 of the Turkish Code of Obligations, a rent determination lawsuit can be filed at any time. However, in order for the newly determined rental amount to be effective from the beginning of the new rental term, the lawsuit must be filed at least thirty days before the start of the new rental period, or the tenant must be notified within this period that a rent determination lawsuit will be filed.

In such cases, the judge will determine the rent for the new period based on the current market value, taking the following elements into account:

• Twelve-month average change rate of the Consumer Price Index (CPI),
• The location, condition, and intended use of the leased property,
• Rental values of comparable properties in the same area,
• The principle of equity.

This lawsuit must be filed at least 30 days before the lease term expires. The landlord must either send a written notice to the tenant or initiate legal action within that period for the court’s decision to be retroactively applicable.

However, according to Court of Cassation (Yargıtay) precedents, if the lease contract includes a provision for rent increase in the new term, any lawsuit filed before the end of the new term will still allow the newly determined rent to be effective from the beginning of that new term.

b. Timing of Filing a Lawsuit for Lease Agreements Shorter Than Five Years in Turkey

If the lease agreement has not yet completed five years, and there is no explicit clause regarding rent increase in the contract, it is still possible to file a rent determination lawsuit in Turkey. However, in such cases, the judge’s discretion is more limited.

In agreements shorter than five years, the judge can only rule for a rent increase up to the twelve-month average CPI rate, and may not consider comparable rental values or market rates. Thus, rent increases in this context are limited solely to inflation-based adjustments.

c. Key Considerations for Parties Before Filing a Rent Determination Lawsuit in Turkey

A rent determination lawsuit in Turkey may be initiated by either the landlord or the tenant. However, before filing such a lawsuit, the following factors should be carefully reviewed:

• Duration of the lease agreement (Is it below or above five years?),
• Whether the agreement includes a clause about rent increase,
• Whether any written or verbal agreement was made between the parties,
• Whether a written notice for rent increase was served in time,
• Whether the mandatory mediation process was duly completed.

The timing of rent determination lawsuits in Turkey depends on the duration of the lease agreement. In agreements exceeding five years, the rent can be freely adjusted based on market value, while for agreements shorter than five years, the CPI cap cannot be exceeded. In both scenarios, compliance with legal requirements before initiating the lawsuit is essential to avoid potential loss of rights.

5. How Long Does a Rent Determination Lawsuit Take in Turkey?

The duration of a rental price adjustment case in Turkey is not fixed and can vary depending on numerous factors. However, such lawsuits in Turkey typically conclude within 12 to 18 months on average. Below are the main factors that affect the duration of the lawsuit process in Turkey:

• Court Workload: The current caseload of the court handling the matter directly affects how soon the file will be processed and how frequently hearings will be scheduled. In busy courthouses, the legal process may take longer.
• Expert Witness Examination: Since determining the rental value often relies on technical and market data, courts usually appoint an expert. The appointment of the expert, preparation of the report, and its submission to the court can significantly prolong the duration of the lawsuit.
• On-Site Inspection and Evidence Collection: An on-site inspection may be necessary to evaluate the condition of the leased property, comparable rental values, and parties’ statements. These procedural steps also affect the litigation timeline.
• Appeal Process (Regional Court of Appeal): Rent determination lawsuits in Turkey do not produce final judgments until they are finalized. If either party appeals the local court’s decision, the case is sent to the regional court of appeal. The finalization of the case may be delayed until the upper court completes its review.

The duration of a rent increase lawsuit in Turkey is subject to variation depending on court workload, expert involvement, on-site inspections, and possible appeals. On average, these lawsuits are expected to be resolved within 1 to 1.5 years. However, shorter or longer durations are also possible.

Therefore, it is highly recommended to seek legal advice from a qualified property dispute lawyer in Turkey before initiating the legal process, as this can help with time management and prevent potential loss of rights.

WHAT ARE THE RESULTS OF A RENT INCREASE LAWSUIT IN TURKEY?

The results of a rent determination lawsuit in Turkey may vary depending on the court’s decision, the evidence presented during the trial, and the claims of the parties involved. However, generally, the outcomes of a rent determination lawsuit in Turkey can be summarized under the following headings:

1. Determination of the New Rent Amount

The primary result of a rent determination case in Turkey is the court’s reassessment of the rent amount based on the parties’ circumstances, the characteristics of the property, the rental values of similar properties in the area, and economic indicators (such as the CPI). The court takes care to ensure, in line with the principle of fairness and Article 344 of the Turkish Code of Obligations, that the rent is neither excessively raised nor unfairly low.

The newly determined rent becomes the binding amount that the tenant is required to pay in future periods.

2. Retroactive Effect and Implementation Period

The retroactive effect of the rent amount determined by the court depends on whether all legal requirements of the case were properly fulfilled. If the landlord has given the tenant a written notice at least 30 days before the new rental period, as required by law and contract, and the lawsuit was filed timely, the new rent amount decided by the court will apply retroactively from the start of the rental period when the lawsuit was filed.

Conversely, if the procedural requirements were not fully met, the court decision will only be effective from the next rental period onward. This distinction is critically important for the protection of the parties’ rights and ensuring legal certainty.

3. Distribution of Litigation Costs and Fees

The rent determination lawsuit in Turkey is subject to a proportional court fee, calculated based on the annual total rent amount. In addition, technical examinations such as expert reports and inspections during the trial may incur additional expenses. The court will decide the extent to which the parties are liable for these costs at the conclusion of the case.

The allocation of costs can vary depending on whether the case is won or lost, potentially creating an economic burden on the parties.

4. Binding Nature of the Judicial Decision and Legal Consequences

If the court’s rent determination decision exceeds the appeal threshold amount, it becomes subject to review by a higher court (Court of Appeal). If the higher court upholds the lower court’s decision, the ruling gains the status of a final judgment, and the new rent amount is officially established.

Once the decision becomes final, if the tenant fails to pay the new rent amount, the landlord can pursue legal enforcement measures in Turkey. It is important to note that the rent determination lawsuit itself cannot be used directly for rent collection. Therefore, for unpaid rents, the landlord must initiate enforcement proceedings or eviction actions separately.

This judicial ruling thereby gains a binding character that helps ensure legal stability in rental relationships and protects the rights of the parties.

5. Resolution of Disputes and Provision of Legal Security

The rent adjustment lawsuit in Turkey facilitates the resolution of rental price disputes in Turkey between the tenant and the landlord in court. This allows the parties to obtain an objective and legally compliant determination of the rent.

The rent amount clarified by the court decision helps to prevent future rental value dispute in Turkey, promoting a healthier and more sustainable rental relationship. It also clearly defines the rights and obligations of both tenant and landlord.

CAN A RENT DETERMINATION CASE BE FILED IN TURKEY BEFORE 5 YEARS?

According to the Turkish Code of Obligations, if there is no provision regarding rent increase in the lease agreement, it is possible to file a rent determination case in Turkey before five years. However, in this case, the court’s discretion is limited.

In lease agreements shorter than five years or in rent determination lawsuits filed before five years, the judge can only rule for an increase not exceeding the twelve-month average change rate of the CPI (Consumer Price Index). During this process, the court does not consider the market value of the property or comparable rent values. Only a rent increase based on the inflation rate within legal limits can be made.

Another way to request a change in rent before five years is a rent adaptation lawsuit in Turkey. According to Article 138 of the Turkish Code of Obligations, if there are extraordinary and unforeseeable circumstances, it is possible to request the adaptation of the contract to new conditions.

Conditions Required To File A Rent Adaptation Lawsuit In Turkey:

• The existence of an extraordinary situation arising after the contract was made (for example: economic crisis, pandemic, natural disaster, etc.),
• This situation excessively complicates the performance of the contract for the parties,
• The situation was unforeseeable and unavoidable by the parties,
• The excessive difficulty in performance is not caused by the tenant.

If these conditions exist, it is possible to apply to the court to request the reduction of the rent or the termination of the contract. The rent adaptation lawsuit is different from classic rent determination lawsuits and is opened entirely based on extraordinary conditions.

In conclusion; if there is no provision regarding rent increase in the lease agreement, a rent determination case can be filed in Turkey before five years, but in this case, the court can only make an assessment limited to the CPI increase rate. No research on the market value of the property or comparable rents is done.

On the other hand, in the presence of extraordinary economic and social conditions, a rent adaptation lawsuit can be filed in Turkey requesting the modification or termination of the contract terms.

Both lawsuit types are effective legal means to eliminate legal uncertainties that may arise between tenants and landlords. However, since these processes require technical and legal knowledge, obtaining professional legal support from an English-speaking lawyer in Turkey is important to protect tenant rights and to prevent possible loss of rights that may arise from a rental value dispute in Turkey.

IS IT MANDATORY TO SEND A WRITTEN NOTICE TO THE TENANT BEFORE FILING A RENT DETERMINATION CASE IN TURKEY?

As a rule, filing a rent revaluation case in Turkey is not conditional on sending a notice. The landlord may file a rent determination lawsuit in Turkey without sending a notice to the tenant, provided that the legal conditions are met. However, an exception to this rule arises when a lawsuit is intended to be filed regarding a rent increase for the new rental period.

According to Article 345, paragraph 2 of the Turkish Code of Obligations, for the landlord to file a lawsuit aiming to determine the rent for the new period, it is required to notify the tenant in writing at least 30 days before the expiration of the lease agreement. This written notification constitutes a legally valid notice and grants the landlord the right to file a lawsuit within the new rental period.

The relevant notification can be made via a notary, by registered mail, or by hand in writing. The law does not make it mandatory for the notification to be sent exclusively through a notary or under the Notification Law. However, being written and timely is of great importance in terms of legal validity and proof, especially in the context of rent dispute resolution in Turkey.

Within this framework, if a notice has been sent to the tenant and the lawsuit is not filed at the beginning of the new rental period, it can still be filed until the end of the new rental period in Turkey. Otherwise, the rent increase lawsuit in Turkey will only be valid for the following rental period.

IS IT NECESSARY TO FILE A RENT DETERMINATION LAWSUIT AT THE END OF 5 YEARS IN RENTAL AGREEMENTS IN TURKEY?

The completion of 5 years in rental agreements does not automatically require filing a rent determination case in Turkey. If there is a valid contract between the parties and the annual rent increase rate is clearly stated in this contract, this rate can be applied by the parties. Especially if the parties are satisfied with the determined increase rate and the rental relationship continues smoothly, it is not mandatory to file a rent determination lawsuit at the end of 5 years in Turkey.

According to the Turkish Code of Obligations, unless terminated by the parties, the rental agreement is considered to have been extended in one-year periods under the same conditions in Turkey. During this extension period, the increase rate determined in the contract continues to apply. Therefore, in cases where the agreed increase rate is valid, there may be no need for a separate determination lawsuit at the end of 5 years.

However, if the rent amount is significantly below the market value, economic conditions have changed considerably, or disputes arise between the parties regarding the rent amount, the completion of 5 years creates a legal opportunity to file a rent determination case in Turkey. In this case, one of the parties may apply to the court by claiming that the increase rate in the contract does not reflect current market conditions.

In conclusion, filing a rent determination lawsuit at the end of 5 years in Turkey is not mandatory, but if there is a dispute between the parties or a request to update the rent amount, filing a lawsuit is possible. In practice, if the increase rate agreed in the rental contract is considered sufficient by the parties, the rental relationship can continue without the need to apply to the court.

HOW IS THE 5-YEAR PERIOD CALCULATED IN A RENT ADJUSTMENT LAWSUIT IN TURKEY?

In Turkey, the calculation of the five-year period in a rent determination lawsuit is determined according to the date of the first rental agreement made at the beginning of the rental relationship. Pursuant to Article 344 of the Turkish Code of Obligations, in order to request the re-determination of the rent amount by the judge, at least five years must have passed. This period generally starts from the date the first rental agreement was signed.

1. Calculation of the Period Based on the First Rental Agreement

Even if new rental agreements are made every year while the rental relationship continues, if there is no explicit statement in these rental agreements that the previous rental agreement has been completely terminated, the five-year period will be calculated based on the date of the first rental agreement.

For example, if the rental agreement started on 01.01.2020, the five-year period will expire on 01.01.2025.

2. Calculation of the Period Based on a Subsequently Signed Rental Agreement

However, if in the subsequently signed rental agreement it is clearly stated that the previous rental agreement was terminated and a new rental relationship was established with new terms, then the five-year period will be calculated from the date of the new rental agreement.

Which Rental Agreement is Taken as Basis in Which Situation?

• If the new rental agreement does not include a statement that the previous rental agreement has ended or been terminated, the five-year period is calculated based on the first rental agreement.
• If the new rental agreement explicitly states that the previous rental agreement has ended, the period starts from the date of this new rental agreement.

The answer to the question of how the five-year period is calculated in a rent determination case in Turkey depends on the content of the rental agreements signed between the parties. In each concrete case, the expressions in the rental agreements should be carefully evaluated. Whether the first rental agreement or the last rental agreement will be taken as the basis will be determined according to the declarations in these documents, and this evaluation will be decisive regarding the calculation of the period in the rent revaluation case in Turkey.

HOW IS THE NEW RENT AMOUNT DETERMINED IN A RENT REVALUATION CASE IN TURKEY?

In Turkey, the determination of the new rent amount in rent determination lawsuits is carried out by the court based on objective criteria. Pursuant to Article 344 of the Turkish Code of Obligations, the judge decides the rent amount considering the limitations prescribed by law and the specific circumstances of the case. The main criteria taken into account in this process are as follows:

1. CPI (Consumer Price Index) Change Rate

The court primarily considers the twelve-month average CPI increase rate for the previous year in Turkey. The CPI rate sets a legal upper limit on rent increases to prevent excessive rent hikes in Turkey and thus provides a reasonable basis for rent determination in Turkey. However, in rental relationships exceeding five years, the court may consider factors beyond just the CPI.

2. Current Condition of the Leased Property

The physical condition, location, age, maintenance status, usage type, and characteristics of the property are directly influential factors in determining the rent amount in Turkey. Properties that are renovated, centrally located, and have modern features are generally valued with a higher rent amount.

3. Current and Comparable Rent Amounts

The court takes into account the current rent amounts of similar properties in the same area. Through this comparison, the court aims to determine a market-appropriate rent amount by identifying the fair rental value based on comparable data.

4. Principle of Equity 

The principle of equity, as stipulated in Article 344 of the Turkish Code of Obligations, plays an important role in the judge’s assessment. Applications such as “old tenant discount” may be considered in favor of tenants who have resided in the same property for a long time. The court also evaluates factors such as the economic status, livelihood, and social conditions of both the landlord and the tenant, striving to determine a rent amount that is fair and equitable.

The new rent amount in a rent increase lawsuit in Turkey is determined not only based on the CPI rate but also through a comprehensive evaluation within the framework of the property’s characteristics, current comparable rents in the region, and the principle of equity. The court takes all these criteria into account to deliver a balanced decision that protects the interests of both the landlord and the tenant in rent dispute resolution in Turkey.

HOW IS THE EQUITY DISCOUNT (OLD TENANT DISCOUNT) APPLIED IN RENT INCREASE LAWSUIT IN TURKEY?

In Turkey, in rent determination lawsuits, judges may apply a discount by taking into account the principle of equity. This discount is commonly referred to as the “equity discount” or “old tenant discount.”

The old tenant discount can be applied to persons who have been long-term tenants of the same property before. This discount means a reduction in the rent amount compared to what new tenants are required to pay, based on the former tenants’ long-term use of the property.

During the process of determining the rent amount in Turkey, the judge may decide on the equity discount by considering the property’s condition, market conditions, the general level of rent amounts, and other important factors. This discount is usually reflected as a decrease in the rent and is determined by the judge in accordance with the principle of equity in the rent determination lawsuit in Turkey.

However, the extent of the equity discount and the conditions under which it is applied may vary in each case. Generally, in rent determination lawsuits, the equity discount is determined as a rate between 10% and 20%. This rate is applied by the court based on the principle of equity during the determination of the rent amount. Therefore, each rent determination lawsuit in Turkey has different conditions, and judges evaluate each case individually.

CAN A RETROACTIVE RENT DETERMINATION CASE BE FILED IN TURKEY?

In Turkey, the new rent amount determined by the court in rent determination lawsuits is generally applied prospectively. However, under certain conditions, retroactive rent determination is also possible in Turkey. Two separate situations are considered in practice regarding this matter:

1. If There is a Provision Regarding Rent Increase in the Lease Agreement

If the lease agreement contains a provision stating that the rent will be increased for the new rental period and the rent determination lawsuit is filed before the new period begins, the court’s decision will be valid from the start of the new period in Turkey. In this case, the newly determined rent amount may also be applied for the rental period that started before the lawsuit was filed.

2. If There is No Provision Regarding Rent Increase in the Lease Agreement

If there is no rent increase provision in the lease agreement, the landlord must file the rent determination lawsuit within thirty days from the beginning of the new rental period or use the right to file the lawsuit by giving written notice to the tenant at least thirty days before the new period begins. If these conditions are met, the rent amount ruled by the court will be valid from the beginning of the new rental period.

Retroactive rent adjustment in Turkey is exceptionally possible, but it is strictly subject to formal and time requirements. For the landlord’s rent increase claim to be valid, the contract provisions, notice periods, and timing of filing the lawsuit are of great importance. Therefore, before filing a retroactive rent increase lawsuit in Turkey, the lease agreement must be carefully reviewed and legal procedures must be properly followed.

FROM WHICH DATE IS THE RENT DETERMINATION LAWSUIT DECISION VALID IN TURKEY?

In Turkey, the issue of from which date the decision of a rent determination lawsuit becomes effective is explicitly regulated in Article 345 of the Turkish Code of Obligations. Accordingly:

1. If the Lawsuit Is Filed Before the New Rent Period or the Tenant Has Been Properly Notified in Time

If the rent determination lawsuit is filed within thirty days from the start of the new rent period, or if a written notice has been sent to the tenant at least thirty days before the new period begins, the new rent amount determined by the court will be valid from the beginning of the rent period for which the lawsuit was filed in Turkey.

Moreover, if there is a clear provision in the lease agreement stating that the rent will be increased for the new period, the court’s decision will also be applied from the beginning of the new rent period.

2. If These Conditions Are Not Met

If none of the above conditions are fulfilled, the new rent amount determined by the court will be valid only from the beginning of the next rent period in Turkey. In this case, the decision applies not to the rent period when the lawsuit was filed, but effectively to the following rent period.

CAN A RENT DETERMINATION LAWSUIT BE FILED FOR COMMERCIAL PREMISES IN TURKEY?

Under the Turkish Code of Obligations, not only residential properties but also commercial leases related to workplaces owned by companies in Turkey, merchants, and tradesmen established in Turkey under Commercial Law can be subject to a rent determination case in Turkey. The law does not make a separate distinction for commercial rents, and it is legally possible to file a rent determination lawsuit between commercial tenants and landlords.

A rental price adjustment case in Turkey is a type of lawsuit filed to re-determine the rent of the leased property according to the market value and the principle of equity. These lawsuits typically arise when there is a need to update the existing rent based on economic conditions, especially in long-term lease relationships.

In the case of commercial rents in Turkey, if there is a dispute between the parties regarding the rent amount or if the current rent is below the market value, either the landlord or the tenant can apply to the court to request a re-determination of the rent.

In conclusion, both natural and legal persons who are parties to a commercial lease agreement can file a rent determination lawsuit under the provisions of the Turkish Code of Obligations to request that the rent be determined based on objective conditions. However, since tax obligations such as Value Added Tax (VAT) and withholding tax arise in commercial leases, it is important to seek support from a tax law attorney in Turkey in these cases.

WHAT ARE THE LAWYER FEES AND COURT COSTS FOR A RENTAL PRICE ADJUSTMENT CASE IN TURKEY?

Rent determination lawsuits in Turkey are subject to proportional fees. The proportional fee is calculated based on the total annual amount of the disputed rent. The fee amount is determined annually according to the Fee Law and relevant tariffs, and as the value of the lawsuit increases, the fee rate rises correspondingly.

In addition, during the lawsuit process, judicial procedures such as expert examination, on-site inspection, and if necessary, local inspection are generally conducted. The fees for these procedures are collected from the parties as advances determined by the court at the beginning or relevant stages of the lawsuit. These litigation expenses may include items such as expert fees, inspection expenses, notification costs, and file expenses.

If legal assistance is obtained from a lawyer during the lawsuit process in Turkey, the lawyer’s fee is determined based on the Attorney Minimum Fee Tariff. This fee may vary depending on the amount in dispute, the legal and technical difficulty of the case, and the provisions of the power of attorney agreement with the lawyer. However, under no circumstances can a fee lower than the minimum tariff be agreed upon.

Before filing a rent determination lawsuit in Turkey, it is important to evaluate the financial aspects of the process together with a property dispute lawyer in Turkey specialized in rent law and to plan the expenses accordingly.

CAN A RENT DETERMINATION LAWSUIT BE FILED WHILE AN EVICTION LAWSUIT IS ONGOING IN TURKEY?

Legal disputes between the tenant and the landlord in Turkey often involve rental value disputes as well as property eviction cases. Therefore, it is legally possible and commonly encountered in Turkey to file a rent determination lawsuit while an eviction lawsuit is ongoing.

Under Turkish law, eviction lawsuits and rent determination lawsuits are separate cases serving different legal processes and purposes. The eviction lawsuit demands that the tenant vacate the property, whereas the rent determination lawsuit aims to re-determine the rent amount in accordance with market conditions.

The Court of Cassation decisions explicitly state that these two lawsuits can be filed and conducted simultaneously. The 3rd Civil Chamber of the Court of Cassation has emphasized that filing a rent determination lawsuit while the eviction lawsuit is ongoing is not procedurally improper and does not lead to a conflict of interests. These two cases are handled independently by the courts and proceed without waiting for the outcome of the other. Therefore, the result of the eviction lawsuit does not affect the result of the rent determination case in Turkey.

In summary, filing a rent determination lawsuit while an eviction lawsuit is ongoing in Turkey is legally possible and valid. This situation enables the parties to effectively protect their reciprocal rights. The independence of the lawsuits allows for separate adjudications on both matters. During this process, parties should carefully conduct their lawsuits with legal support to avoid losing their rights in rent dispute resolution in Turkey.

CAN A NEW OWNER FILE A RENT REVALUATION CASE IN TURKEY?

When a rented property is sold to another person in Turkey, the new owner becomes a party to the rental relationship. In this context, considering the continuity and binding effect of the lease agreement, it is important to determine whether the new owner has the right to file a rent determination lawsuit in Turkey.

The new owner is free to file a rent adjustment lawsuit in Turkey within the scope of the duration and procedural provisions of the existing lease agreement. However, strict compliance with the procedural rules and time limits stipulated in the existing lease agreement is mandatory in the lawsuit to be filed. Failure to comply with the terms of the existing agreement may lead to dismissal of the case on procedural grounds or cause other legal impediments.

In conclusion, the new owner can apply to legal remedies in Turkey for the determination of the rent amount as long as the rental relationship continues and in accordance with the existing contract provisions. Since the new owner becomes a party to the lease agreement, they can exercise rights such as eviction undertakings, rent determination lawsuits, and eviction due to need. In this process, the limits set by the lease agreement must be observed, and legal procedures must be fully complied with.

CAN A RENT DETERMINATION LAWSUIT BE FILED FOR ORAL LEASE AGREEMENTS IN TURKEY?

In Turkey, the validity of oral lease agreements for the purpose of rent determination lawsuits is often debated in practice, but since lease agreements are not subject to formal requirements under the Turkish Code of Obligations, oral lease agreements are legally valid. Therefore, as long as the existence of an oral lease agreement between the parties is acknowledged, it is possible to file a lawsuit for the determination of the rent amount.

However, there may be difficulties in proving oral lease agreements. Especially, the collection of evidence related to the existence of the agreement and the parties’ acknowledgment of the agreement are factors that directly affect the outcome of the rent determination case in Turkey. For this reason, oral lease agreements are harder to prove compared to written contracts and require extra care during the lawsuit process.

In conclusion, in cases of oral lease agreements, it is very important that the parties document this situation and present sufficient evidence. Thus, the court can evaluate the validity of the oral lease agreement in the rent review lawsuit in Turkey and make a decision in accordance with fairness.

FOREIGNERS’ RIGHT TO FILE A RENT DETERMINATION CASE IN TURKEY

In international rental relationships, especially when one party is a foreign natural or legal person, questions arise regarding which law applies to disputes arising from lease agreements and which courts have jurisdiction. Within this framework, the rights and obligations of foreigners in filing rent determination lawsuits are clearly regulated under Turkish law.

Article 20 of the International Private and Procedural Law No. 5718 (MÖHUK) stipulates that in debt relationships concerning immovable property, the law of the place where the immovable property is located shall apply. Accordingly, in rental relationships related to immovable property located within the borders of Turkey, Turkish law applies regardless of the nationality of the parties involved. Likewise, the competent court is the court of the place where the immovable property is situated.

Within this scope, a foreign lessor who owns immovable property in Turkey or a foreign tenant in Turkey has the right to file or be a party to a rent determination lawsuit concerning immovable property located in Turkey. In other words, whether it is a foreign natural or legal person owning immovable property in Turkey or a foreign person residing as a tenant in Turkey, they can file a rent determination lawsuit under the relevant provisions of the Turkish Code of Obligations aimed at the re-determination of the rent amount.

In particular, in practice, not only foreign natural persons but also foreign companies’ branches and liaison offices in Turkey frequently participate in immovable leasing relationships. In this context, such foreign persons or entities also have the right to file rent determination lawsuits in Turkey based on the provisions of the Turkish Code of Obligations.

In conclusion, without any nationality-based discrimination, the provisions of the Turkish Code of Obligations regarding rent determination apply to all rent-related determination claims arising from immovable properties located in Turkey. Foreigners have full legal capacity to file lawsuits in this regard, and Turkish courts are competent and authorized judicial bodies responsible for hearing these cases.