The Five-Year Rule in Rent Determination

For residential and roofed commercial premises, how far rent may be increased in renewed lease years is governed by Article 344 of the Turkish Code of Obligations.

The general rule: the CPI cap

Agreed increases are valid provided they do not exceed the twelve-month average change in the consumer price index for the previous lease year. The temporary 25 percent cap that applied to residential leases between 2022 and 2024 has expired.

The five-year rule

For leases lasting more than five years or renewed after five years, and at the end of each subsequent five-year period, the court sets the rent for the new lease year equitably, taking into account the CPI change, the condition of the premises and comparable rents.

Once five years have passed, rent can be brought closer to market conditions, independent of the index cap.

Procedure

Mediation is mandatory before filing a rent determination action. If the action is filed, or the tenant is notified in writing, at least thirty days before the new lease period begins, the determined rent applies from the start of that period.