The upper limit for rent increases in lease agreements is determined by the Turkish Code of Obligations. Currently, this upper limit is based on the 12-month average of the Consumer Price Index (CPI). This average is calculated by summing the inflation rates of each month over the past 12 months. In the past, high inflation rates resulted in high 12-month averages. However, to curb inflation, rent increases have sometimes been based on projected inflation rates rather than actual inflation.
This discrepancy—where salaries increased by 30% while legally permissible rent increases reached 55%—has led to disputes between landlords and tenants. This article explains how the legal rent increase is determined, what happens if a tenant fails to comply, and how landlords can pursue eviction and addresses frequently asked questions.
How Is the Legal Rent Increase Determined?
The legal rent increase refers to the adjustment specified in the lease agreement, and both parties are required to comply with it. However, this does not grant absolute freedom to the parties involved. According to the Turkish Code of Obligations:
"Agreements made by the parties regarding the rent applicable during renewed lease periods shall be valid provided they do not exceed the 12-month average change rate of the Consumer Price Index for the previous year."
Thus, even if a higher amount is agreed upon in the contract, the rent increase cannot exceed the 12-month CPI average. If a tenant pays less than the legally adjusted rent, the landlord has the right to initiate eviction proceedings.
What Happens If a Tenant Does Not Comply with the Legal Rent Increase?
Paying the rent is the tenant's primary obligation under the lease agreement. Tenants must make their payments within the timeframe specified in the contract and follow the legal increase rates. Failure to do so may result in eviction. When notifying a tenant about underpayment, the notice must clearly indicate the months for which payments are missing. Additionally, legal deadlines outlined in the Turkish Code of Obligations should be granted for the tenant to complete the payment. If these notices yield no results, the landlord may proceed with eviction.
Determination of Rent Through a Rent Determination Lawsuit
If the landlord and tenant cannot agree on the rent increase, either party can file a rent determination lawsuit. Particularly for contracts lasting longer than five years or those renewed after five years, the landlord can request a rent adjustment based on fairness.
In these cases, the judge will consider factors such as the 12-month CPI average, the condition of the property, comparable rental prices, changes in minimum wage, and fluctuations in currency or gold prices. The goal is to adjust the rent fairly, considering the property's appreciation over time.
How to Evict a Tenant Who Does Not Comply with the Legal Rent Increase
There are two legal methods for evicting a tenant who does not comply with the rent increase under Turkish law:
- Eviction based on two justified warnings (under the Turkish Code of Obligations)
- Eviction due to non-payment of rent (under the Enforcement and Bankruptcy Law)
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- Eviction Based on Two Justified Warnings
The first method involves sending two justified warnings to the tenant. A written notice or a payment order through enforcement proceedings informs the tenant of the missing rent payment. If the tenant fails to comply and receives two separate warnings within a rental year, the landlord can initiate eviction proceedings.
To qualify for eviction:
- For leases shorter than one year, two separate warnings must be issued during the contract period.
- For leases lasting one year or longer, the two warnings must be issued within a rental year.
- The notices must be in writing and delivered before payment is made.
- The eviction lawsuit must be filed within one month following the end of the rental period.
- Eviction Due to Non-Payment of Rent
Regardless of the lease type, the Turkish Code of Obligations allows landlords to terminate the lease if the tenant does not pay the legally increased rent. The landlord must:
- Clearly state the missing payment,
- Provide the tenant with the legally required deadline to make the payment (at least 30 days for residential and commercial leases),
- Send a notarized written notice outlining the consequences of non-payment, including eviction.
Enforcement Proceedings Without Judgment
Landlords can also seek eviction through enforcement proceedings without requiring two justified warnings. The landlord or their legal representative applies to the enforcement office to request the collection of unpaid rent and the eviction of the tenant. A written lease agreement should accompany the application, if available.
The enforcement office will send a payment order, granting the tenant 30 days to settle the debt. If the tenant pays the debt within this timeframe, eviction is avoided. Otherwise, the landlord can apply to the court for eviction.
If the tenant disputes the debt or the lease agreement, the enforcement process is halted until the issue is resolved in court. The burden of proof lies with the tenant, who must provide evidence (e.g., receipts) that the payment has been made.
Court Jurisdiction and Duration of Eviction Cases
- Cases filed through enforcement proceedings without judgment fall under the jurisdiction of the enforcement court.
- Eviction cases based on the Turkish Code of Obligations are heard by the civil courts of peace
- The competent court will be the one located where the property is situated or where the defendant resides.
How Long Do Eviction Cases Take?
If represented by a lawyer, eviction cases generally conclude within 1-2 years, depending on the court's workload. A well-prepared lawyer who follows legal procedures closely can shorten this period. Consulting a real estate lawyer in Turkey is advisable to ensure efficiency and minimize the risk of losing rights due to procedural errors.
Frequently Asked Questions
What happens if rent is unpaid for two consecutive months?
The landlord can issue a notice or initiate enforcement proceedings, allowing for eviction based on two justified warnings.
What if a tenant refuses to comply with the legal increase?
The landlord can send a written notice or initiate enforcement proceedings. If the tenant continues to underpay, eviction proceedings can be initiated.
What if a tenant rejects the CPI-based increase?
If the lease agreement specifies a rate lower than the CPI average, the tenant is not obliged to comply with a higher rate.
Can landlords request rent increases retroactively?
Yes, landlords can claim rent increases retroactively for up to five years if the legal increase rate was specified in the lease agreement.
Conclusion
Landlords aim to protect the value of their property and avoid losses due to inflation by applying rent increases. If a tenant fails to comply, the landlord can pursue legal action through warnings or enforcement proceedings. Considering the complexity of real estate law, consulting a specialized attorney is highly recommended to ensure the process runs smoothly and effectively.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
