Rent Increase Proceedings in Türkiye

PROCESS, LEGAL BASIS AND STRATEGIES FOR OWNERS LIVING ABROAD

Many property owners who manage their real estate in Türkiye from Germany, Austria, Switzerland or other European countries face the same problem: while the cost of living and market rents in Türkiye continue to rise sharply, their own rental income has often remained unchanged for years. Tenants ignore rent increase requests, describe themselves as “long-standing tenants,” or accept only minimal adjustments – even when the actual market value of the property is significantly higher.

In such situations, a judicial rent determination action under Turkish law becomes the central legal mechanism for aligning the rent with economic conditions. At Vural & Demir Law and Consulting, we assist owners living abroad with meeting all legal deadlines, correctly initiating the mandatory mediation process, and obtaining a court-ordered rent adjustment at the earliest possible time, ensuring that your property is not rented far below its value.

1. LEGAL REQUIREMENTS FOR BRINGING A JUDICIAL RENT DETERMINATION ACTION UNDER TURKISH LAW

A) Existence of a Valid Tenancy Agreement

The most important requirement for initiating a judicial rent determination action is the existence of a valid tenancy agreement.

Since Turkish contract law does not require a specific form, tenancy agreements may be concluded either orally or in writing.

For court proceedings, however, the existence of the tenancy must be provable. The following documents are particularly relevant:

• rent payment records,
• written correspondence (emails, messages),
• handover or inspection reports,
• any documentation confirming the existence of the tenancy.

Without a provable tenancy, a judicial rent adjustment is not legally possible.

B) The Tenancy Must Have Existed for at Least Five Years OR the Agreement Must Lack an Effective Rent Adjustment Clause

Whether a judicial rent determination action can be brought depends on:

1. whether the tenancy has lasted for at least five years, or
2. whether the tenancy agreement lacks a valid rent adjustment clause.

This distinction determines the timing, the extent of judicial review, and the potential amount of the adjustment.

→ Case 1: The tenancy agreement contains no rent adjustment clause

If the agreement does not contain an enforceable clause for adjusting the rent and the parties cannot reach an agreement, the property owner is not required to wait five years.

In this case, a judicial rent determination action may be filed for each new rental period. However, the court’s jurisdiction is limited: the adjustment can be based only on the legally defined inflation index, and no broader market analysis is permitted.

→ Case 2: The tenancy has existed for more than five years

If the tenancy has existed for more than five years, an action may be filed even if the agreement contains a rent adjustment clause.

In these cases, the court has broad discretion and evaluates:

• the legally defined inflation index,
• the physical and functional characteristics of the property,
• its location and surrounding environment,
• comparable rental values for similar properties in the region.

The resulting rent is typically closer to market value and is often significantly higher than inflation-based limits.

C) Written Notice to the Tenant – When Is It Required?

Before filing a judicial rent determination action, sending a written notice to the tenant is not a mandatory condition under Turkish law. The action may be filed even without prior notice.

However, the date on which the notice is served determines from which rental period the new rent will take effect.

There are two ways to ensure the adjusted rent applies from the beginning of the upcoming rental period:

→ Filing the lawsuit at least 30 days before the start of the new rental period

No prior notice is required.
The court-determined rent applies from the first day of the new period.

→ Serving written notice at least 30 days before the start of the new rental period

The notice may be served:

• through a notary, or
• via any written method that provides proof of delivery.

If the notice is served on time, the lawsuit may be filed even after the new rental period begins and the adjusted rent will still apply retroactively from the start of that period.

→ If both deadlines are missed

The adjusted rent will apply only from the following rental year.

For property owners abroad, this often results in the loss of an entire year of increased rent – a common and costly mistake.

At Vural & Demir Law and Consulting, we ensure that notices are prepared and served in a valid, timely and provable manner to protect our clients from financial loss.

2. THE MANDATORY MEDIATION PROCEDURE IN RENT ADJUSTMENT CASES

Since 1 September 2023, mediation has been a mandatory procedural step for tenancy-related disputes in Türkiye, including judicial rent determination actions.

If a lawsuit is filed without mediation, the court will dismiss the case on procedural grounds.

For property owners living abroad, this may result in:

• significant delays,
• additional costs,
• and potential liability for the tenant’s legal fees.

Mediation must therefore be completed before litigation can proceed.

3. THE RIGHT TIME TO FILE A JUDICIAL RENT DETERMINATION ACTION

The correct timing depends primarily on:

1. whether the tenancy has exceeded five years, and
2. whether the agreement contains a valid rent adjustment clause.

General rules:

• If the tenancy has lasted longer than five years → the action can be filed at any time.
• If it has existed for less than five years → the action can only be filed if the agreement lacks an adjustment clause.

Incorrect timing is one of the most common reasons for loss of rental income among owners living abroad.

4. WHEN DOES THE NEW RENT APPLY? – TEMPORAL EFFECTS OF RENT ADJUSTMENT PROCEEDINGS

Accurate timing is essential, as it affects when the adjusted rent becomes enforceable.

A) The action is filed at least 30 days before the new rental period

→ The adjusted rent applies from the beginning of the new period.

B) The tenant was notified in writing at least 30 days in advance

→ The adjusted rent applies from the beginning of the new period, even if the lawsuit is filed later.

C) The deadline is missed

→ The adjusted rent applies only from the next rental year.

A single missed date can result in the loss of an entire rental year of income.

5. COMPETENT COURTS AND LOCAL JURISDICTION

Judicial rent determination actions fall under the exclusive jurisdiction of the civil peace courts in Türkiye.

The action may be filed either:

• at the tenant’s place of residence, or
• at the location of the property (place of performance).

This is strategically important for owners abroad, as jurisdiction is usually determined by the location of the property.

6. STRATEGIC RECOMMENDATIONS FOR OWNERS LIVING ABROAD

Owners abroad often face significant losses due to:

• missed notice deadlines,
• failure to initiate mandatory mediation,
• filing the lawsuit too late,
• procedural mistakes.

Because each error can cost an entire rental year, professional legal support is essential.

7. TIMING IS EVERYTHING: NOTICE – MEDIATION – LAWSUIT

The most common mistakes by owners abroad include:

• serving notices too late,
• skipping mandatory mediation,
• filing the lawsuit after the applicable deadline.

These errors directly lead to financial losses.

Vural & Demir Law and Consulting provides full legal representation for rent adjustment proceedings and supports clients in English, German and Turkish. We manage all procedural steps on your behalf so that your property rights are fully protected without your physical presence in Türkiye.