How Is the Rent Increase Determined for Residential Leases?
2 min read İsmail Boybey
The increase that applies to a renewed period of a residential lease is one of the most common sources of dispute between landlords and tenants. Article 344 of the Turkish Code of Obligations sets a cap that protects the tenant.
The statutory cap
An agreement on the rent for the renewed period is valid as long as the increase does not exceed the twelve-month average change in the consumer price index for the previous lease year. Even if the contract provides for a higher rate, the increase is applied up to this cap.
If the parties cannot agree
Where the parties do not agree, the court determines the rent on an equitable basis, taking the condition of the property into account and without exceeding the same cap. For leases lasting more than five years, the rent for the new period may be set by reference to comparable rents.
Time limit for a rent determination action
A rent determination action may be filed during the new lease period. If it is filed no later than thirty days before the new period begins, or if the landlord notifies the tenant in writing within that time, the rent set by the court applies from the start of the new period.
In any dispute over an increase or a determination, the lease terms and the parties’ correspondence should be assessed together.
This article is for general information only and does not constitute legal advice. You should consult a lawyer about your specific situation.
