In leases of residential and roofed business premises, the maximum increase for a renewed lease year is the rate of change in the twelve-month average of the consumer price index (CPI) for the previous lease year (Turkish Code of Obligations, Art. 344). The temporary 25% cap for residential leases ended on 1 July 2024. If the parties cannot agree on the new rent, it is set through a rent determination lawsuit at the civil court of peace; applying to a mediator before filing the lawsuit is mandatory.
In this article, we cover the legal increase cap, how rent is set in tenancies lasting more than five years, rent in foreign currency, and the deadlines and procedure of the rent determination lawsuit. For other tenancy and title deed matters, see our real estate law page.
How is the legal rent increase rate determined?
Under the Turkish Code of Obligations, agreements between the parties on the rent for renewed lease periods are valid provided that they do not exceed the rate of change in the twelve-month average of the consumer price index (CPI) for the previous lease year (TBK Art. 344(1)). This rule also applies to leases with a term longer than one year.
The consequences of this provision can be summarised as follows:
- Even if the contract states a higher increase rate, the part exceeding the cap is not valid.
- The parties are free to agree on a rate below the cap.
- If the parties have not agreed at all, the judge sets the new rent on the basis of fairness, taking the condition of the property into account and without exceeding the same cap (TBK Art. 344(2)).
In practice, the rate used is the twelve-month average CPI change announced by TÜİK for the month preceding the month in which the lease year renews. As a hypothetical example: if the monthly rent is 20,000 TL and the relevant rate is 30%, the highest rent that can be requested for the new lease year is 26,000 TL. As the actual rate changes every month, the calculation must be made for the month in which your lease renews.
Does the 25% cap still apply?
No. During the period of high inflation, the legislator introduced two temporary provisions for residential leases only. The provisional article added by Law No. 7409 limited increases to 25% for lease periods renewed between 11 June 2022 and 1 July 2023 (TBK Provisional Art. 1). The second provisional article, added by Law No. 7456, applied the same cap to periods renewed between 2 July 2023 and 1 July 2024 (TBK Provisional Art. 2).
For lease periods renewed after 1 July 2024, only the CPI cap applies again. As of October 2026, when this article was prepared, the Code of Obligations contains no new temporary cap. Since tenancy legislation has changed frequently in recent years, it is advisable to check the text in force on mevzuat.gov.tr before applying an increase.
Is there a difference between residential and roofed business premises?
TBK Art. 344 applies to all leases of residential and roofed business premises (TBK Art. 339). The main differences between the two types are as follows:
| Type of lease | Increase cap | Note |
|---|---|---|
| Residential | Twelve-month average CPI for the previous lease year | The temporary 25% cap applied to periods renewed between 11.06.2022 and 01.07.2024 |
| Roofed business premises | Twelve-month average CPI for the previous lease year | The temporary 25% cap did not apply to business premises |
| Rent in foreign currency | No change for five years | After five years, the judge sets the rent (TBK Art. 344(4)) |
| Tenancy lasting more than five years | The judge sets the rent on the basis of fairness | Comparable rents and CPI are considered together (TBK Art. 344(3)) |
In leases of business premises where the tenant is a merchant or a legal entity, TBK Art. 344 did not apply for eight years from 1 July 2012 under Provisional Article 2 of Law No. 6217. That period ended in 2020, so the same cap now applies to these premises as well. These provisions do not apply to properties that by their nature are intended for temporary use and are let for six months or less (TBK Art. 339(1)).
How is rent set in tenancies lasting more than five years?
In leases with a term of more than five years or renewed after five years, and at the end of every subsequent five-year period, the rent for the new lease year is set by the judge. The judge determines a fair rent by taking into account the change in CPI, the condition of the property and comparable rents (TBK Art. 344(3)). This rule applies regardless of whether the parties have an agreement on increases.
This provision allows rents that have fallen far below market levels in long tenancies to be brought up to date. However, the landlord cannot set the rent unilaterally; if no agreement is reached, a rent determination lawsuit must be filed. In the following lease years, the rent set by the court is again increased within the CPI cap.
In the case law of the Court of Cassation (Yargıtay), the five-year period is, as a rule, calculated from the start of the tenancy relationship with the same tenant; re-signing the contract between the same parties does not automatically restart the period. When comparable rents are used, a fairness reduction is applied, taking into account that the existing tenant is not in the same position as a new tenant.
Can rent be set in foreign currency?
Under the Communiqué on Decree No. 32, persons resident in Turkey cannot agree the price in foreign currency or indexed to foreign currency in real estate lease contracts between themselves, including residential and roofed business premises (Communiqué No. 2008-32/34, Art. 8(2)). Contracts in which the tenant is a person resident in Turkey who is not a Turkish citizen are an exception to this ban; in these contracts, the rent may be set in foreign currency (Art. 8(3)). If one of the parties is not resident in Turkey, the contract does not fall within the ban at all.
If the rent has been validly agreed in foreign currency, the rent cannot be changed until five years have passed (TBK Art. 344(4)). If an extraordinary change severely disrupts the balance of the contract during this period, the provisions on excessive difficulty of performance remain applicable (TBK Art. 138). After five years, the new rent is set by the judge, also taking into account changes in the value of the foreign currency.
Who files a rent determination lawsuit, and when?
A lawsuit for determination of the rent can be filed at any time (TBK Art. 345(1)). It is usually filed by the landlord; the tenant may also ask for the rent to be determined. What matters most is the date from which the rent set by the court applies:
| Situation | Deadline | When does the rent set by the court apply? | Legal basis |
|---|---|---|---|
| Lawsuit filed before the new period | At least 30 days before the start of the new period | From the start of the new lease period | TBK Art. 345(2) |
| Landlord gave written notice of the increase | Notice at least 30 days before the new period, lawsuit before the end of the new period | From the start of the new lease period | TBK Art. 345(2) |
| The contract contains an increase clause | Lawsuit before the end of the new lease period | From the start of the new lease period | TBK Art. 345(3) |
| None of these conditions is met | The lawsuit can be filed at any time | As a rule, from the lease period following the lawsuit | TBK Art. 345(1) |
| Mandatory mediation | The mediator concludes within 3 weeks (extendable by at most 1 week) | Peremptory deadlines do not run during this period | Law No. 6325, Art. 18/A |
Sending the written notice through a notary public and documenting the date of service are important for proving the thirty-day period. Because the mediation stage is mandatory, it is open to debate whether the thirty-day period is preserved merely by applying to a mediator. The safest course is therefore to deliver the written notice to the tenant at least thirty days before the new period.
How does mandatory mediation before the lawsuit work?
Following the amendment made by Law No. 7445, since 1 September 2023 applying to a mediator before filing a lawsuit has been a procedural requirement in disputes arising from tenancy relationships (Law No. 6325 on Mediation in Civil Disputes, Art. 18/B). The provisions on eviction through enforcement proceedings without a court judgment (ilamsız icra) fall outside this rule.
The application is made to the mediation office at the place of the court that has jurisdiction over the subject of the dispute. From the application to the mediator until the date the final report is drawn up, limitation periods are suspended and peremptory deadlines do not run (Art. 18/A(15)). If no agreement is reached, the final report is attached to the statement of claim; a lawsuit filed without any application to a mediator is dismissed on procedural grounds (Art. 18/A(2)).
If one of the parties fails to attend the first meeting without a valid excuse, that party is held liable for half of the litigation costs payable by the other side, even if it wins the case in whole or in part (Art. 18/A(11)). If an agreement is reached, obtaining an annotation of enforceability from the civil court of peace for the agreement document is mandatory (Art. 18/B(3)).
Which court hears a rent determination lawsuit?
All disputes arising from tenancy relationships are heard by the civil court of peace, regardless of the amount in dispute (Code of Civil Procedure (HMK) Art. 4(1)(a)). The lawsuit can be filed at the court of the defendant’s place of residence or at the court of the place where the property is located, which is where the contract is to be performed (HMK Arts. 6 and 10). For a residence or business premises in Ankara, a rent determination lawsuit can be filed at the Ankara civil courts of peace.
How does the court determine the rent?
As a rule, the court obtains an expert examination (HMK Art. 266). The court-appointed expert, carrying out an on-site inspection where necessary, examines the location, size, age and features of the property and compares the rents of similar properties in the same area. The parties may submit their own comparable lease contracts with the statement of claim and the response.
It is important that the comparables are genuinely comparable: contracts for properties of a different size, a different use or a very different date do not provide a sound comparison. In tenancies lasting more than five years, after determining the comparable rent, the court applies a fairness reduction and sets the new rent while also taking the CPI change into account.
Is refusing a rent increase a ground for eviction?
No. A tenant’s refusal to accept an increase request is not, on its own, a ground for eviction; what can be done in that case is to file a rent determination lawsuit. However, if the tenant does not pay the current rent or the rent set by the court, the rules on default may come into play. For the grounds of eviction and the deadlines attached to them, see our article on how to evict a tenant.
Which documents should you prepare?
In a dispute about the rent, the following documents are important:
- The lease agreement and any later addenda
- Bank records showing rent payments
- The notice of increase sent through a notary public and proof of its service
- Comparable lease contracts or listings for similar properties in the same area
- The title deed record and documents showing the features of the property
- The final mediation report
Before the lease year begins
The most common mistake in disputes about rent is missing the thirty-day period. Working out in advance the start date of the lease year, the CPI rate that will apply and when the tenancy will complete five years makes the next steps easier for both landlord and tenant. For an assessment specific to your case, you can contact our office.
