What is a Lease Agreement?
A lease agreement, regulated under Articles 299 and subsequent articles of the Turkish Code of Obligations No. 6098, is a contract where the landlord agrees to provide the use of property to the tenant, and the tenant undertakes to pay the agreed rent in return.
Rent Increase Rate and Limitations
Annual rent increase for residential properties cannot exceed the producer price index (PPI) increase rate from the previous rental year. As of 2024, a ceiling has been established for residential rent increases.
Key considerations for rent increases:
• Even if specified in the contract, rent increase cannot exceed the legal limit
• For contracts longer than five years, the court may determine new rent amounts
• Written notification is required to file a rent determination lawsuit
• Rent increases apply at each new rental period
Tenant Rights
The fundamental rights of tenants include:
• Right to use the property as specified in the contract
• Right to request rent reduction during temporary evacuation for major renovations
• Right to demand rent discount or terminate the contract for defective property
• Right to claim reimbursement of mandatory expenses from the landlord
• Right to sublease and transfer (with landlord's written consent)
Landlord Rights
The landlord's rights include:
• Right to collect rent fully and on time
• Right to demand careful use of the property
• Right to terminate the contract in case of misuse
• Right to file eviction lawsuit due to personal need
• Right to set renewal conditions at contract expiration
Grounds for Eviction
The landlord may file an eviction lawsuit in the following cases:
Tenant-caused grounds:
• Non-payment of rent (two justified warnings)
• Failure to use the property with due care
• Existence of an eviction commitment
Landlord-caused grounds:
• Housing need of the landlord, their spouse, or children
• Property requiring reconstruction or major renovation
• Need of the new owner (notification within 1 month of purchase, lawsuit after 6 months)
Security Deposit
The security deposit collected from the tenant cannot exceed 3 months' rent. The deposit must be placed in a bank account and returned upon termination of the lease agreement. In case of property damage, repair costs may be deducted from the deposit.
Ten-Year Extension Period
Fixed-term lease agreements extend by one year if not terminated by the tenant at expiration. After 10 years from the end of the contract period, the landlord may terminate the agreement without showing any cause. This termination must be made with 3 months' written notice.
Conclusion
Both tenant and landlord rights are guaranteed by law in lease agreements. It is crucial to follow current legislation on rent increase rates, eviction grounds, and deposit rules. Seeking professional legal support in case of disputes protects the rights of both parties.