Rent Increase in Turkey: Legal Limit, Calculation and Rent Determination Lawsuit
The rent increase at each renewal of a lease is the most frequent point of disagreement between tenants and landlords in Turkey, including for foreign nationals renting a home or office. The Turkish Code of Obligations (TCO) sets a statutory upper limit on rent increases in renewed lease periods and, where the parties cannot agree, allows the rent to be determined by a court through a rent determination lawsuit.
This guide explains the current rules on rent increases, how the maximum increase is calculated, how rent is determined for leases that have lasted five years, the rent determination lawsuit and the points tenants and landlords should consider.
In Brief: Rent Increases in Turkey
- In renewed lease periods, the rent increase cannot exceed the twelve-month average change in the consumer price index (CPI) announced by the Turkish Statistical Institute (TCO Art. 344/1).
- The temporary 25% cap for residential leases ended on 1 July 2024; the CPI twelve-month average applies again.
- Any agreed increase above the legal limit is invalid for the excess part.
- For leases that have lasted five years, and every five years thereafter, the rent may be determined by the court on an equitable basis, taking market rents into account.
- Mediation is mandatory before filing a rent determination lawsuit.
How Is the Rent Increase Determined?
Under Article 344(1) TCO, the parties’ agreements on the rent for renewed lease periods are valid provided that the increase does not exceed the twelve-month average change in the consumer price index in the previous lease year. This rule applies to both residential and roofed commercial premises.
The 25% cap that applied to residential leases for a period ended on 1 July 2024. For lease periods renewed after that date, the CPI twelve-month average applies again.
How Is the Maximum Increase Calculated?
- Identify the month in which the lease is renewed. For example, if the lease renews every November, the rate announced for the previous month is used.
- Find the twelve-month average CPI change rate announced monthly by the Turkish Statistical Institute (TÜİK) for that month.
- Multiply the current rent by this rate to find the maximum increase and add it to the current rent.
For example, for a home with a monthly rent of TRY 20,000, if the twelve-month average rate announced for the relevant month is 30%, the new rent may be at most TRY 26,000. Even if the lease provides for a higher increase, the excess part is invalid.
If the Lease Does Not Specify an Increase
If the parties cannot agree on the rent for the renewed period and the lease contains no increase clause, the rent is determined by the judge, again within the limit of the CPI twelve-month average change.
Rent for Leases That Have Lasted Five Years
In long-term tenancies, the rent can fall well below market levels over time. For this reason, Article 344(3) TCO provides a special rule for leases longer than five years or renewed after five years, and every five years thereafter. In these cases, the rent for the new lease year is determined by the judge on an equitable basis, taking into account the CPI twelve-month average change, the condition of the premises and comparable rents.
This rule allows the rent in tenancies that have lasted five years to be brought closer to market levels, without being bound by the statutory increase limit. In practice, courts determine comparable rents through expert examination and may apply an equitable reduction in favour of the long-standing tenant.
What Is a Rent Determination Lawsuit?
A rent determination lawsuit is filed to have the rent for the renewed lease period determined by the court. It may be filed by either the landlord or the tenant.
When Should the Lawsuit Be Filed?
Under Article 345 TCO, a rent determination lawsuit may be filed at any time. However, the date from which the rent determined by the court applies depends on when the lawsuit is filed:
- If the lawsuit is filed at least thirty days before the new lease period, or the landlord notifies the tenant in writing within this period that the rent will be increased, the rent determined applies from the beginning of the new period.
- If the lease contains a clause providing for a rent increase, the lawsuit may be filed until the end of the new lease period, and the rent determined applies from the beginning of that period.
- If these conditions are not met, the rent determined generally applies from the following lease period.
Mandatory Mediation
Applying to a mediator before filing a rent determination lawsuit is a condition of the action under Article 18/B of the Mediation Law. If the parties agree on the new rent in mediation, the agreement is binding; otherwise, the lawsuit is filed with the final mediation report before the civil court of peace.
Points for Tenants and Landlords
- Check the twelve-month average CPI rate for the month in which the lease renews before agreeing to an increase.
- Tenants should continue paying rent by bank transfer, with a clear payment description, including the legally permitted increase.
- Landlords who wish to apply a five-year market adjustment should take into account the thirty-day notice rule.
- A tenant who refuses an increase above the legal limit cannot be evicted for that reason alone. See our guide on tenant rights in Turkey.
- Foreign nationals renting in Turkey benefit from the same statutory protection as Turkish tenants.
Frequently Asked Questions
Does the 25% rent increase cap still apply?
No. The 25% cap for residential leases ended on 1 July 2024. The twelve-month average CPI change rate now applies to renewed lease periods.
Can a landlord demand an increase above the legal rate?
An agreement on an increase above the legal limit is invalid for the excess part. However, for leases that have lasted five years, the rent may be determined by the court on an equitable basis, taking market rents into account.
Can a tenant be evicted for not paying the increase?
A tenant who refuses an increase above the legal limit cannot be evicted for that reason. However, a tenant who does not pay the legally valid rent, including the permitted increase, may face default and eviction proceedings.
How long does a rent determination lawsuit take?
The duration depends on the workload of the court and the expert examination of comparable rents.
Conclusion
In renewed lease periods, rent increases in Turkey are limited to the twelve-month average CPI change, and any excess is invalid. For leases that have lasted five years, the rent may be brought closer to market levels through a rent determination lawsuit. Mandatory mediation and the timing rules of Article 345 TCO determine when the new rent applies.
Yetkiner Law Firm provides legal support in İzmir in English, French and Turkish to tenants and landlords in rent increases, rent determination lawsuits, eviction and other real estate law matters. The firm can be reached through the channels on the contact page.
The information on this page has been prepared for general informational purposes and does not constitute legal advice. It is recommended to obtain legal support from a lawyer in specific cases.
