Rent Determination Lawsuit in Turkey

In Turkey, when the rent agreed in a residential or commercial lease becomes significantly lower than market value, the landlord (or in some cases the tenant) may file a Rent Determination Lawsuit under Articles 344 and 345 of the Turkish Code of Obligations.

This legal action allows the court to determine a fair rental value based on objective criteria.

When Can a Rent Determination Lawsuit Be Filed?

The most important rule is the five year requirement. If five years have passed since the beginning of the lease agreement, the court may reassess the rent by considering:

• The 12-month average Consumer Price Index (CPI),

• Comparable rental properties in the area,

• The physical characteristics of the property,

• The principle of equity.

If five years haven't passed, rent increases are generally limited to CPI unless otherwise agreed.

Which Court Is Competent?

• Rent determination cases are filed before the Civil Court of Peace (Sulh Hukuk Mahkemesi) in Turkey.

  
  

• Jurisdiction lies with:

1. The court where the property is located, or

2. The tenant’s domicile.

When Does the New Rent Become Effective?

• Timing is crucial. If the lease doesn't contain a rent increase clause, the landlord must either : Send written notice or file the lawsuit at least 30 days before the new lease term. Otherwise, the decision will apply starting from the next lease term.

• If the lease contains a rent increase clause, no prior notice is required.

Evidence and Court Process

The court typically appoints a real estate valuation expert and examines comparable rental agreements in the same area. Accurate comparable evidence plays a decisive role in determining the new rent.

Rent Determination vs. Adaptation

A rent determination lawsuit shouldn't be confused with an adaptation lawsuit under Article 138.

• Rent determination is based on the five year rule and market conditions.

• Adaptation requires extraordinary and unforeseeable circumstances that fundamentally disrupt contractual balance.

Conclusion

A rent determination lawsuit is an important legal tool in Turkish lease law to ensure fairness in long term rental relationships. However, procedural timing and proper claim formulation are critical to avoid loss of rights.

Foreign investors, landlords, and tenants in Turkey should seek professional legal advice before initiating proceedings.

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