Lease Agreement in Turkey – Attorney Ozan Soylu

WHAT DOES A LEASE AGREEMENT?

Lease Agreement in Turkey is a contract where the lessor grants the use of a property or asset to the tenant (lessee) in exchange for the payment of rent. The lessor must provide the property in a suitable condition for the intended use, while the tenant is obligated to pay rent. The lessor’s obligation to deliver the property is determined by the agreed date between the parties, while the tenant’s obligation to pay rent is due at the end of each month or by the end of the lease term, unless otherwise specified in the agreement and local laws.

KEY COMPONENTS OF A LEASE AGREEMENT IN TURKEY 

A lease agreement consists of three crucial elements: the subject of the lease, the rental fee, and the mutual declarations of intent by the parties involved.

1. Subject of Lease

The subject of the lease can be anything from movable or immovable assets, the use of a product-yielding item or right, to the collection of said products. It is important to note that the lessor does not necessarily have to be the owner of the subject of the lease. The essential factor is that the lessor is able to deliver the leased item in suitable condition for its intended use on the agreed date. If the lessor fails to fulfill this obligation, the lessee can hold them responsible.

2. Rental Fee

The lessee’s primary obligation is to pay the agreed-upon rental fee on time, which is an integral part of the lease agreement. The payment can be made either through the bank or by hand, with the latter requiring the lessor’s signature and specification of the payment period.

3. Mutual Declarations of Intent

For a contract to be legally binding, both parties must have congruent and well-informed declarations of intent and must have agreed upon the essential elements of the lease agreement. These essential elements include the transfer of the right to use the leased property and the obligation of the lessee to pay the rental fee. The form of the agreement, whether verbal, written, or formal with a notary, is up to the parties involved.

TYPES OF LEASE AGREEMENTS IN TURKEY 

1. Rental of Movables

A movable rental is a type of lease agreement where the lessor grants the use of a movable property, such as a motor vehicle, clothing, or instrument, in exchange for rental payment.

2. Rental of Immovables

An immovable rental refers to a lease agreement that involves real estate properties such as residences, land, and workplaces. Residential and workplace rentals, which are common examples of immovable rentals, have specific regulations in the law.

3. Product Leasing 

A product lease agreement is established when the tenant agrees to pay a rental fee for the use and benefit of a property, regardless of whether it is movable or immovable, in order to obtain its products.

PARTIES IN THE RENTAL AGREEMENTS

Lessor

For someone to be considered the lessor in a lease agreement, they must have the capacity to act, be of age, and have the power of discernment. As a result, anyone who has the ability to act can enter into a lease agreement. Minors and individuals who are with limited capacity must obtain the consent of their legal guardians or have their legal guardians sign the contract on their behalf. However, if the lease agreement is for a product that lasts over a year or an immovable property that lasts over three years, permission from the guardianship authority is required.

It should be noted that the lessor doesn’t have to be the owner of the property being leased to enter into a valid lease agreement.

Tenant

To be considered the tenant in the lease agreement, the individual must have the capacity to act, similar to the lessor. Minors and individuals who are with limited capacity must obtain the consent of their legal guardians or have their legal guardians sign the contract on their behalf. Additionally, if the lease agreement is for a product that lasts over a year or an immovable property that lasts over three years, permission from the guardianship authority is required.

FORM OF RENTAL CONTRACT 

As per the Turkish Code of Obligations, there is no set form requirement for the validity of rental agreements. As a result, the parties involved can conclude the contract in any form they desire. However, it is advisable to make the agreement in writing in order to avoid disputes and facilitate proof.

DURATION OF RENTAL CONTRACT 

Rental agreements can either be for a specified or unspecified time frame. If the agreement has a set expiration date, it will come to an end without notice upon reaching that date. Leases that do not have a set expiration date are considered to be of an indefinite duration. In such cases, either party may terminate the agreement by adhering to the legal termination and notice periods, unless a longer notice period has been agreed upon. The start date of the rental agreement is used as a reference for calculating the termination and notice periods. If the specified termination or notice period is not followed, the notice will be valid for the next available period.

CONSIDERATIONS OF CREATING A RENTAL AGREEMENT

When making a rental agreement, the following items should be taken into account:

 

– Ensure that the lease agreement includes the following information about the property:

– Land registry and address details

– Physical characteristics of the property

– Purpose for which the property will be used

– Clearly state the rental price, payment date, and any rent increase periods and amounts.

– To prevent damage, a deposit, not exceeding three months of rent, should be set and recorded to protect the rights of both parties.

– Any items included with the property should be documented in the agreement.

– If the tenant fails to pay rent, a guarantor should be required to prevent any potential harm. The suretyship contract must be in writing and specify the maximum amount for which the guarantor is responsible, as well as the date of the guarantee. The guarantor must also clearly state the maximum amount of responsibility and the date of the suretyship in their own handwriting.

– It is advisable for both parties and the guarantor to sign the lease agreement together, with each page signed.

– The agreement should state that the leased property may only be transferred to a third party or sublet with written consent from the landlord.

– To avoid disputes, it may be helpful to document the condition of the property at the start of the lease, such as if it is painted or furnished, and if the tenant is expected to return it in the same condition at the end of the contract.

– If the tenant terminates the contract early, the landlord can claim three months of rent as compensation for the loss of rent during the period when the property is unoccupied.

 

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