Articles

What to know about a lease

Residential and commercial leases are governed by special provisions of the Turkish Code of Obligations that protect the tenant. The parties are free to agree terms, but the statutory limits on rent increases, deposits and termination apply regardless of the contract.

What the lease should say

The rent and payment date, the term, how rent will increase, who pays the running costs, the condition of the property at handover and any fixtures should be set out clearly. A handover report with photographs largely prevents disputes about damage when the tenant leaves.

Under Article 342, the deposit for residential and commercial leases may not exceed three months' rent. A cash deposit is placed in a time deposit account that cannot be withdrawn without the landlord's consent.

Rent increases and rent determination

Under Article 344, an agreed increase for renewed lease years is valid only up to the change in the twelve-month average of the consumer price index for the previous lease year. For leases longer than five years, or renewed after five years, the court may set the rent on an equitable basis, also taking comparable rents into account.

If rent is agreed in a foreign currency, it can generally not be changed until five years have passed, subject also to the rules on the protection of the value of the Turkish currency.

Termination and eviction

Under Article 347, a fixed-term lease is deemed renewed for one year unless the tenant gives notice at least fifteen days before expiry; the landlord cannot end the lease merely because the term has expired. After ten years of renewals, the landlord may terminate without giving a reason.

The landlord's grounds for eviction are listed in the law: need for the property for the landlord or close relatives, reconstruction or major renovation (Article 350), the tenant's written undertaking to vacate, and two justified written warnings for non-payment within one lease year (Article 352). Each of these is subject to short, strict time limits; if missed, the right may be postponed to the next period.

If rent is not paid, under Article 315 the tenant can be given at least thirty days in writing, with notice that the lease will be terminated. Mediation is mandatory before filing a lease lawsuit; summary eviction through enforcement proceedings is outside this requirement.

Our view

Most lease disputes stem from something not written down on the first day. A well-drafted lease and deadlines entered in the calendar protect both landlord and tenant from lengthy litigation.