Rent is one of the most frequent sources of dispute between landlords and tenants. The Turkish Code of Obligations sets rules that bind both the parties and the judge.
The annual cap
For residential and covered commercial leases, the increase applied in a renewed lease year may not exceed the twelve-month average of the consumer price index for the previous lease year (TCO art. 344).
The five-year rule
In leases longer than five years, or renewed after five years, at the end of every five years and in each following lease year the rent is set by the judge on an equitable basis, taking into account the index, the condition of the property and comparable rents.
When to file
If the rent determination action is filed at least thirty days before the new lease period begins, or the landlord notifies the tenant in writing within that time, the rent set by the court applies from the start of the new period (TCO art. 345).
Mediation first
Since 1 September 2023, applying to a mediator before going to court is a precondition for lease disputes. If mediation does not produce an agreement, the parties may then litigate.
Articles are for general information only; always consult a lawyer about your specific situation.
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