Turkey Rental Laws: Pro-landlord, Neutral or Pro-tenant?
Turkish landlord and tenant laws are judged by the Global Property Guide to be Pro-Tenant between landlord and tenant. Turkey's rental laws generally favor tenants in terms of long-term security and protections against eviction and rent hikes. But there are also provisions that protect the interests of landlords, particularly regarding property maintenance and the right to receive rent.
Rents: Can landlord and tenant freely agree rents in Turkey?
Rents may be freely agreed at the beginning of rental contracts.
Under Turkish rental law, the rent increase rate for a renewed lease is valid as long as it does not exceed the increase rate in the 12-month Consumer Price Index (CPI). This increase rate is referred to as the "legal increase rate."
Prior to January 17, 2019, the applicable rate for rent increases was based on the Producer Price Index (PPI), but now it is based on the CPI.
According to Article 344 of the Turkish Code of Obligations, this rule is mandatory, meaning that landlords cannot exceed the legal increase rate when renewing a lease.
Deposits
The property owner may request a security deposit from the tenant as compensation for any potential damages that occur during the lease period. Typically, the deposit is equal to two months' rent.
What rights do landlords and tenants have in Turkey, especially as to duration of contract, and eviction?
The Turkish Civil Code is the primary legal framework that regulates lease agreements in Turkey. This code defines the rights and obligations of both tenants and landlords and sets the procedures for resolving disputes. It covers issues related to lease renewal, eviction, and various other matters that may arise during the rental relationship. The law provides a comprehensive guide to all aspects of rental agreements, including financial transactions between the parties.
Key provisions of the law include:
Lease Agreement:
A formal lease agreement must be signed between the landlord and tenant, detailing the lease’s duration, rent, and other property-related terms. For residential leases, the typical duration is six months or one year, while for commercial leases, it is usually five years or as agreed upon by the parties.
Lease Duration:
Lease agreements are typically automatically renewable unless one party notifies the other of their intention not to renew the lease at least 30 days before its expiration. The duration can vary based on the type of rental, such as touristic or annual leases.
Rent Value:
Rent is determined fairly and must be agreed upon by both parties, with annual rent increases regulated by law. Rent increases are based on the Consumer Price Index (CPI), and the increase must not exceed the percentage specified by the government.
Security Deposit:
The landlord is entitled to request a security deposit (usually two months' rent) as compensation for potential damage to the property during the lease period.
Property Modifications:
The tenant is prohibited from making changes to the property without the landlord’s written consent. Subleasing the property without the landlord's approval is also forbidden. If this occurs, the landlord has the right to file a lawsuit against the tenant and seek eviction within six months.
Responsibility for Costs:
Property-related costs that are not directly related to the tenant's use of the property are the landlord's responsibility. However, if the tenant covers these costs, they have the right to deduct them from their rent payments.
Example of cost responsibility:
The landlord is generally responsible for the exterior painting of the apartment, although this can be altered by mutual agreement in the lease contract.
If the property has maintenance issues before the tenant moves in, the tenant can demand that the landlord handle repairs. Alternatively, the tenant may agree to cover the repair costs and deduct them from rent payments.
Legislation
In Turkey, tenant and landlord relations are primarily governed by the Turkish Civil Code (specifically, Article 299 to 355), which outlines the legal framework for leases, rights, and responsibilities of both parties.
In addition to the Civil Code, specialized regulations apply, such as the Law on the Protection of Tenants and Regulations on Residential Leases, which provide further details on specific rights and obligations, particularly in residential leases. These laws cover areas like lease agreements, rent payment terms, security deposits, eviction processes, and rental increases.
For issues related to commercial leases, the Turkish Code of Obligations also plays a significant role in regulating the relations between landlords and tenants.
How effective is the Turkish legal system?
If there is no promise of vacate by tenant, lawsuits about rentals or vacating the premises take approximately 1-1.5 years, including appeal process.