Rent Increase Lawsuit in Turkey *2025 – Atty. Ozan Soylu

For foreigners living in Turkey, understanding the local legal system regarding rental properties is essential. One particularly important aspect is the rent increase lawsuit (kira artış davası), which allows landlords or tenants to request a court-determined adjustment to the rent amount. This comprehensive guide will help foreign residents understand how these lawsuits work in Turkey and what rights they have under Turkish law.

 

Understanding Rent Increase Lawsuits

A rent increase lawsuit is a legal process where either the landlord or tenant asks the court to determine a fair rental price based on current market conditions. While in practice these lawsuits are most commonly filed by landlords seeking higher rent, tenants can also file to request a reduction in rent if circumstances warrant it.

These lawsuits are governed by the Turkish Code of Obligations (Türk Borçlar Kanunu) and are designed to ensure rental amounts remain fair and equitable for both parties as market conditions change.

The court’s decision is binding once finalized, and both parties must comply with the new rental amount determined by the judge.

When Can Rent Increase Lawsuits Be Filed?

There is no statutory time limit for filing a rent increase lawsuit in Turkey. However, timing considerations are crucial for when the new rent amount will take effect.

For the court-determined rent to apply to the current rental period, the lawsuit must be filed at least 30 days before the renewal date of the lease, or the landlord must send a written notice about the intention to increase the rent within this timeframe.

The most significant factor in these lawsuits is the five-year rule. If a rental relationship has continued for less than five years, any increase cannot exceed the previous year’s Consumer Price Index (TÜFE) 12-month average change rate.

The Five-Year Rule for Rent Increases

The five-year threshold is particularly important for foreigners to understand:

• For rental agreements less than 5 years old: The court cannot set rent higher than the TÜFE rate
• For rental agreements 5 years or older: The court can set rent based on market rates, comparable properties, and fairness principles
• After each 5-year period: The process can be repeated

Legal Requirements for Filing a Rent Increase Lawsuit

To file a valid rent increase lawsuit in Turkey, certain conditions must be met:

1. There must be a valid rental agreement between the parties (written or verbal)
2. The plaintiff must have legal interest in filing the lawsuit
3. For disputes over 5-year-old contracts, market rates become relevant
4. For the new rate to apply to the current period, written notice must be given 30 days before renewal

If the landlord wants the new rent amount to apply to the current rental period, they must either file the lawsuit or send a written notice at least 30 days before the renewal date. Otherwise, the new amount will only apply to the following rental period.

How Courts Determine Fair Rent Amounts

When deciding on an appropriate rent amount, Turkish courts consider several key factors:

Consumer Price Index (TÜFE)

The 12-month average change in the Consumer Price Index serves as a baseline reference for rent increases. For leases less than five years old, this rate serves as a hard cap on increases. For older leases, it’s one of several factors considered.

Property Condition

The court evaluates the physical condition of the property, its location, purpose of use, features, and maintenance needs. Properties in good condition with modern amenities typically command higher rents.

Environmental factors like neighborhood developments and changes in the surrounding area are also considered by the judge.

Comparable Market Rates

The court examines rental prices of similar properties in the same area to establish fair market value. This comparison helps ensure the determined rent aligns with current market conditions.

Fairness Principles

Turkish law requires judges to consider “hakkaniyete uygun” (fairness) principles when determining rent. This often results in what’s called an “old tenant discount” of 15-20% below what would be charged for a vacant property.

This discount acknowledges the benefit to landlords of having a reliable, continuing tenant rather than finding a new one.

Procedural Aspects of Rent Increase Lawsuits

Starting from September 1, 2023, mandatory mediation applies to all rent determination lawsuits. This means parties must attempt to resolve the dispute through a mediator before filing a lawsuit.

• The lawsuit must be filed at the Civil Court of Peace (Sulh Hukuk Mahkemesi)
• Court fees are calculated based on the difference between the current rent and requested rent
• Expert witnesses typically examine the property and prepare reports on fair market value
• Lawsuits typically take 1-1.5 years to resolve, depending on court workload

Once the court’s decision is finalized, it cannot be enforced retroactively. The new rental amount applies only from the specified date forward.

Common Questions About Rent Increase Lawsuits

From Which Month Does the New Rent Take Effect?

If proper notice was given 30 days before the renewal date or if the lease contains an increase clause, the new rent applies from the beginning of the new rental period. Otherwise, it applies from the following rental period.

Can a Rent Increase Lawsuit Be Filed for Past Periods?

No, rent determination lawsuits only affect future rent payments. They cannot be applied retroactively to past rental periods.

Can Eviction and Rent Increase Lawsuits Be Filed Simultaneously?

Yes, there is no legal barrier to filing both types of lawsuits simultaneously if the conditions for each are met. However, they must be filed as separate legal actions.

Can Foreign Currency Rental Agreements Be Subject to Increases?

For agreements in foreign currency, no increase can be made for 5 years under the Law on the Protection of the Value of Turkish Currency. After 5 years, changes in the foreign currency’s value can be considered.

Important Considerations for Foreigners

Foreigners renting property in Turkey should be aware of several important aspects of the rent increase process:

• Rental agreements should ideally be in writing, even though verbal agreements are legally valid
• Keep records of all rental payments and communications with your landlord
• Official translation may be required for court proceedings if you don’t speak Turkish
• Consider hiring a lawyer familiar with foreigner rental issues in Turkey
• Mandatory mediation must be attempted before filing a lawsuit

About Soylu Law Office

Soylu Law Office provides comprehensive legal services for foreigners navigating Turkey’s rental laws. Based in Istanbul, our multilingual team specializes in representing international clients in rent disputes and property matters. We offer consultation on lease agreements, mediation services, and court representation for foreigners dealing with rental issues in Turkey.

 

For more assistance or consultation on this matter, you can contact us.