Legal Limits on Rent Increases: The Basics

The annual increase on residential rents is one of the most frequent sources of questions for both tenants and landlords. This article sets out the basic framework in general terms.

How is the increase determined?

Under the Turkish Code of Obligations, the increase applied for renewed terms of a residential lease is limited by the rate agreed between the parties in the contract. Even where a rate has been set in the contract, it cannot exceed the upper limit prescribed by law.

The upper limit is calculated by reference to the twelve-month average of the consumer price index for the preceding rental year. This is a regulation intended to ensure the increase does not exceed a certain ceiling.

Where no rate is agreed

If the parties have not set any increase rate in the contract, the rent for the new term is again determined by reference to the same index measure, with regard to equity. In the event of a dispute, the matter may be assessed before the courts.

Lease relationships exceeding five years

Where the lease relationship exceeds five years, it may be possible to reassess the increase rate. In such cases, different criteria may come into play depending on the specific circumstances.

Points to keep in mind

• Notifying the increase in writing and on time reduces potential disputes.
• The contract terms and the statutory upper limit should be assessed together.
• Eviction, adaptation and determination claims are separate legal processes.

Disputes over rent increases vary according to the content of the contract and the specific situation. General information may not apply directly to every case.