The lease agreement is a contract specifically regulated under the Turkish Code of Obligations, where the parties assume mutual rights and obligations. The lease agreement obligates the tenant to pay the rent on time and in full, and to use the leased property carefully and for its intended purpose, while it obligates the landlord to deliver the leased property in a condition suitable for the tenant’s use.
For the lease agreement to be established and become valid, the rent must be agreed upon. The parties have the freedom to freely determine and increase the rent. If the parties cannot reach an agreement on the rent, a determination of the rent can be requested through a court decision.
What is a Rent Determination Lawsuit?
If the parties fail to agree on the rent amount and a dispute arises between them, they always have the right to file a rent determination lawsuit to request the court to set the rent. A rent determination lawsuit is filed to adjust the rent to its fair value considering current market conditions. Governed by Articles 344 and 345 of the Turkish Code of Obligations No. 6098, such lawsuits can only be filed for residential and covered commercial property leases. Rent determination lawsuits cannot be filed for other types of lease agreements. Additionally, a rent determination lawsuit can only be filed if the plaintiff has a legal interest in doing so.
As a rule, a rent determination lawsuit can be filed at any time. However, there are certain specific limitations in the law. Since the rent amount agreed upon during the first year of the contract already exists, the plaintiff will not have a legal interest in filing the lawsuit. If the parties wish to increase the rent at the end of the rental period, it is possible to file a rent determination lawsuit at least 30 days before the new rental period begins. If the lessor gives the tenant a written notice at least 30 days before the start of the new rental period, the rent determination lawsuit can be filed until the end of that rental period.
It is not possible to file a rent determination lawsuit retroactively. To file such a lawsuit, there must not be a definite agreement on the rent amount, or the lease contract must be longer than five years. Additionally, a change in the ownership of the leased property does not affect the tenant’s obligations under the lease contract. The competent court for rent determination cases is the Civil Court of Peace. The lawsuit can be filed at the Civil Court of Peace where the contract is executed.
What is a Rent Adjustment Lawsuit?
The rent amount agreed upon by the parties in the lease contract cannot exceed the annual increase rate of the Consumer Price Index (CPI) at the end of the rental period for the next rental term. Therefore, the rent increase rate is limited by the CPI. However, in cases of excessive hardship of performance, for example, if the performance of the contract becomes considerably difficult for one party due to extraordinary circumstances, the party facing difficulty in performance may request the court to adjust the lease contract.
In practice, rent adjustment lawsuits are often confused with rent determination lawsuits. The main difference between a rent adjustment lawsuit and a rent determination lawsuit is that in a rent adjustment lawsuit, the judge is not bound by the Consumer Price Index (CPI) when determining the new rent. Additionally, a rent adjustment lawsuit can be filed in cases where the value of the property has increased or decreased unpredictably. Examples include the construction of structures such as a metro, airport, or hospital near the property, or the relocation of a courthouse adjacent to an office used as a law firm to another area. In such situations, the lease contract may be adjusted.
A rent adjustment lawsuit can be filed in cases where the rent amount is significantly below the market value due to inflation or similar reasons, where there is a difference between the rent and comparable market rents, and when the lease duration has reached five years. The judge can make a decision based on comparable rental values and may increase the rent if deemed necessary.
Filing a rent adjustment lawsuit is not subject to any notification, deadline, or warning. This lawsuit can be filed for all types of movable and immovable property leases. The rent adjustment lawsuit is filed at the civil peace court located at the place of performance of the contract.
ANTALYA RENTAL LAWYER – ANTALYA TENANT LAWYER
As can be seen, rent determination and rent adjustment cases are easily confused and frequently mixed up in practice. To avoid loss of rights and time, it is essential to seek help from a lawyer specialized in Rental Law. Our law office provides you with professional consultancy, assistance, and follow-up services in the field of Rental Law.
