Rent increases and eviction under a lease: the basic rules

Leases of residential and covered commercial premises are governed by the Turkish Code of Obligations. The most common disputes between tenants and landlords concern rent increases and eviction. On both issues, the law sets special rules that limit the parties' freedom and protect the tenant.

The legal cap on rent increases

When the lease is renewed, the rent increase may not exceed the change in the twelve-month average of the consumer price index (CPI) for the previous lease year. This cap applies even if the contract provides for a higher increase; if a lower rate has been agreed, the lower rate applies.

The temporary twenty-five percent cap that applied to residential leases for a period is no longer in force, as its term has expired. Since temporary rules may be introduced in rental legislation from time to time, check the current rules before applying an increase.

Example calculation

Assume a home rented for TRY 20,000 per month and a twelve-month average CPI change for the previous lease year of, say, fifty percent. The new rent may then be at most TRY 30,000. If the contract provides for a forty percent increase, the new rent is TRY 28,000; if it provides for sixty percent, the legal cap applies and the rent is still at most TRY 30,000. The current rate is published monthly by the Turkish Statistical Institute.

Re-determining the rent after five years

In leases longer than five years and in leases renewed after five years, the rent for the new lease year at the end of every five years is determined by the judge on an equitable basis, taking into account the change in CPI, the condition of the property and comparable rents. In this way, the rent can be brought closer to market levels.

Rent determination action and mandatory mediation

• If the parties cannot agree on the rent for the new period, a rent determination action may be filed.
• If the action is filed at least thirty days before the start of the new lease period, or if the landlord has notified the increase in writing within that period, the rent determined applies from the new period. Otherwise, it applies from the following period.
• Applying to a mediator is mandatory before filing a lawsuit in rental disputes such as rent determination and eviction. Eviction requests made through enforcement proceedings are outside this requirement.

Statutory grounds for eviction

For residential and covered commercial premises, a landlord simply saying "I want my property back" is not enough. The lease can be ended through a lawsuit or enforcement proceedings only if one of the grounds listed in the law exists.

The landlord's need and reconstruction

• The landlord may seek eviction where the property is needed as a home or workplace for the landlord, their spouse, descendants, ascendants or persons they are legally obliged to support. The need must be genuine, sincere and compelling.
• Eviction may be sought where major repairs, expansion or reconstruction of the property are required and the property cannot be used while the work is carried out.
• An action on these grounds must be filed within one month of the end of the term for fixed-term leases or, for indefinite-term leases, of the date determined in accordance with the termination periods and notice requirements.

A new owner who has purchased the property

A new owner who acquires the leased property may, where there is a need for themselves or their relatives, file an eviction action six months after the acquisition, provided that the tenant is notified in writing within one month of the acquisition. The new owner may also file an action at the end of the lease term.

Grounds arising from the tenant

• Undertaking to vacate: if, after the property was handed over, the tenant undertook in writing to vacate on a specific date, the landlord may seek eviction by filing a lawsuit or applying for enforcement within one month of that date.
• Two justified warnings: if the tenant has given cause for two justified written warnings within one lease year for failing to pay rent, the landlord may seek eviction within one month of the end of the lease year.
• Another home in the same area: if the tenant or the spouse living with them owns a home suitable for living in within the same district or municipality, and the landlord did not know this when the lease was made, eviction may be sought.

Non-payment of rent

If the tenant fails to pay rent, the landlord of residential or covered commercial premises may send a written warning giving at least thirty days to pay; if payment is not made within that period, the landlord may terminate the lease. In practice, this route may also be pursued by having the enforcement office send a payment order. If payment is not made in time, an eviction order may be requested from the enforcement court.

At the end of the ten-year extension period

For fixed-term leases of residential and covered commercial premises, at the end of the ten-year extension period that begins after the contract term expires, the landlord may end the lease without giving any reason by giving notice at least three months before the end of each extension year.

Ban on re-letting after eviction

Property vacated on the grounds of need or reconstruction may not, without a justified reason, be let to anyone other than the former tenant for three years. A landlord who breaches this rule must pay the former tenant compensation of no less than one year's rent at the rate paid in the last lease year.

Your rights as a tenant

• An increase above the legal cap is invalid as to the excess; if you have overpaid, you may claim the excess back.
• Unless one of the grounds listed in the law exists, the expiry of the lease term alone is not sufficient for eviction.
• Carefully review the deadlines in any formal notices sent to you and the ground for eviction relied on; notices that do not comply with the procedure may invalidate the eviction request.

Practical tips

• Make rent increase notices, warnings and eviction notices in writing and in a provable form, preferably through a notary.
• Pay rent by bank transfer and state which month the payment relates to.
• Check the date of any undertaking to vacate and whether it was signed after the property was handed over.
• The time limit for filing an action differs for each ground for eviction; seek legal advice before sending a warning or notice so that you do not miss the deadlines.