Turkey is an attractive destination for real estate investment and residency, making it essential for both tenants and landlords to understand its rental laws. This comprehensive guide provides an in-depth look at the legal framework governing rentals in Turkey, including the rights and obligations of all parties involved, applicable taxes, and dispute resolution mechanisms.

Lease Agreements in Turkey: Types and Conditions

Lease agreements in Turkey are primarily governed by the Turkish Code of Obligations (Law No. 6098), which regulates the relationship between landlords and tenants. While lease agreements can be made verbally, it is always advisable to have them in writing to protect the rights of both parties. Lease agreements in Turkey are classified into two main types: fixed-term and indefinite-term contracts.

Fixed-term contracts specify a defined rental period and automatically terminate at the end of that period unless renewed. Indefinite-term contracts continue until one party terminates the agreement in accordance with legal procedures. In both cases, the party wishing to terminate the contract must give prior notice, usually at least one month in advance.

A valid lease agreement in Turkey must include essential elements such as the full details of the landlord and tenant, property description and address, rental period, rent amount and payment method, security deposit (if any), and the obligations of each party regarding maintenance and repairs. Special conditions such as pet ownership or modifications to the property may also be included, provided they do not contradict existing laws.

It is common practice in Turkey to notarize lease agreements, which gives the contract additional legal strength and facilitates enforcement in case of disputes. The notarization fee is approximately 1% of the property's value. Although optional, this step is highly recommended for long-term or high-value leases.

Annual Rent Increases and Their Regulation in Turkey

Annual rent increases are a critical aspect that both tenants and landlords should understand in the Turkish real estate market. Rental increase laws in Turkey have evolved significantly in recent years in response to economic changes and inflation.

Rent Increase Cap Until July 2024

Due to the sharp rise in rental prices in recent years, the Turkish government introduced a cap limiting residential rent increases to a maximum of 25%, even if inflation exceeds this rate. This measure aimed to protect tenants from excessive increases during economic volatility.

Justice Minister Yılmaz Tunç confirmed that this law would remain in effect for one year, from July 1, 2023, to July 1, 2024. It’s important to note that this cap applied only to residential units and did not affect commercial property rents.

Situation After July 2024

After the cap expired on July 1, 2024, rent increases were once again based on the Consumer Price Index (TÜFE), published monthly by the Turkish Statistical Institute (TÜİK). This means rent hikes now reflect the actual inflation rates in the country.

Recent rental increase rates after lifting the cap:

  • November 2024: 62.02% for residential and commercial properties

  • January 2025: 58.51%, based on the annual inflation average for December 2024

Residential vs. Commercial Properties

It’s important to distinguish between rent increase regulations for residential and commercial properties:

  • Residential Properties: Were subject to the 25% cap until July 1, 2024, and are now adjusted according to the Consumer Price Index.

  • Commercial Properties: Were never subject to the 25% cap and always follow the Consumer Price Index. For example, the rent increase rate for commercial units in March 2024 was 55.91%.

How Rent Increases Are Calculated

Rent increase calculations in Turkey are based on the annual average of the Consumer Price Index (TÜFE) released monthly by TÜİK. Here are two examples:

Example During Cap Period:

  • Current rent: 15,000 TRY

  • Month of increase: March 2024

  • Increase rate: 25%

  • Increase amount: 3,750 TRY

  • New monthly rent: 18,750 TRY

Example After Cap Lifted:

  • Current rent: 15,000 TRY

  • Month of increase: January 2025

  • TÜFE rate: 58.51%

  • Increase amount: 8,776.5 TRY

  • New monthly rent: 23,776.5 TRY

Impact of Rent Increases on Tenants and Investors

Impact on Tenants:

  • Increased financial burden, especially after the cap was lifted

  • Need for financial planning to cope with rising annual rents

  • Potential shift to more affordable housing options

Impact on Investors:

  • Higher rental income potential

  • Need for careful analysis of rental yields when investing

  • Consideration of changing laws and regulations

Rights and Obligations of Tenants in Turkey

Tenants in Turkey enjoy a range of rights protected under Turkish law. One of the most significant is protection from unjust eviction; a landlord can only evict a tenant based on legally defined reasons and through proper legal procedures. A tenant also has the right to renew their lease contract, even if the landlord refuses, as long as there is no legal reason to deny the extension.

If the tenant delays rent payments, the landlord must provide a grace period to settle outstanding payments before initiating legal action. Tenants also have the right to request the landlord to fix essential repairs in the property. If the landlord fails to do so, the tenant may legally terminate the contract.

At the end of the lease, tenants are entitled to reclaim their security deposit, provided the property is in good condition and has not been misused. Tenants may also challenge any unfair clauses, such as penalty fees, that could harm their interests.

In return, tenants have several obligations, including paying rent on time, maintaining the property properly, and covering damages caused by misuse either by themselves or their family. They must also notify the landlord of any issues raised by the building or residential complex management and are not allowed to sublet the property without the landlord’s consent.

Under Article 317 of the rental law, tenants are responsible for regular utility payments (electricity, water, gas) and maintenance expenses required for normal usage of the property. These costs vary depending on usage and include charges that would not be incurred if the property were unoccupied.

Rights and Obligations of Landlords in Turkey

Landlords in Turkey are granted rights to protect their real estate investments. These include the right to receive rent on time and to terminate the lease in cases such as non-payment or violation of contract terms. Landlords are also entitled to raise rent annually based on the Consumer Price Index (TÜFE), subject to any legal limits.

At the end of a lease, the landlord has the right to receive the property in the same condition it was initially given, accounting for normal wear and tear. If there are major violations or rent defaults, landlords can file for eviction through legal channels.

Landlords also have obligations: they must provide a habitable property (or commercially usable property as agreed), handle essential repairs that are not the tenant’s responsibility, and pay property-related taxes and fees, including property tax, earthquake insurance, and environmental levies.

They are also required to respect the tenant’s privacy, not enter the property without prior consent, and follow proper procedures if they wish to terminate the lease or evict the tenant. These responsibilities help maintain a balanced relationship and protect both parties.

Taxes and Fees on Rental Properties in Turkey

Several taxes and fees apply to rental properties in Turkey, which both landlords and tenants should be aware of. One of the key taxes is rental income tax, imposed on the income earned from renting property. This tax varies depending on property type and income level:

  • Residential properties: 15%–35%

  • Commercial properties: Up to 45%

To calculate rental income tax, the total annual rental income is first determined, then deductible expenses such as lighting, heating, water, property management, insurance, depreciation, and related taxes are subtracted. The resulting net income is then taxed according to the applicable rate.

There are exemptions, such as for individuals whose annual rental income does not exceed a threshold set annually by the tax office. If the property is co-owned, each owner receives an exemption based on their share.

Other taxes and fees include:

  • Annual property tax: 0.1%–0.2% for residential, 0.4% for commercial properties, and 0.6% for land. Paid by the owner twice a year (May and November).

  • DASK (Compulsory Earthquake Insurance): Mandatory insurance that costs about $50 per year per property.

  • Site maintenance fees (Aidat): Monthly fees covering shared services like security, cleaning, elevator maintenance, lighting, and pool upkeep. Usually paid by the tenant.

  • Title deed transfer fee (Tapu): 4% of the declared value when the property is sold.

  • Notary fees: Around 1% of the property value when certifying property purchase contracts.

Dispute Resolution Procedures Between Tenants and Landlords

Disputes between landlords and tenants in Turkey often arise over issues like rent payments, property maintenance, lease terms, and eviction. These disputes are primarily governed by the Turkish Code of Obligations (Law No. 6098), particularly Articles 299 to 378, which outline the rights and obligations of both parties.

1. Amicable Solutions

Before taking legal action, it is strongly recommended to attempt resolving disputes amicably. This may include:

  • Direct communication between the landlord and tenant

  • Mutually agreed contract amendments

  • Flexible payment plans

  • Scheduled repair or maintenance agreements

  • Voluntary contract termination with fair terms for both sides

2. Mediation

If a resolution cannot be reached, parties may opt for mediation, a voluntary and confidential process in which a neutral mediator helps the parties reach a mutually acceptable agreement. Mediation in Turkey is regulated under the Law on Mediation in Civil Disputes (Law No. 6325). It is:

  • Less costly than court proceedings

  • Faster and more flexible

  • Legally binding if approved by the court, as per Article 18 of the law

3. Arbitration

If mediation fails, the parties may choose arbitration, where a neutral arbitrator issues a binding decision. Arbitration is regulated by the Turkish International Arbitration Law (Law No. 4686). It offers:

  • Legally enforceable decisions

  • Confidential proceedings

  • Faster resolutions than court trials

4. Court Proceedings

As a last resort, parties can take their disputes to Turkish courts. Common legal actions include:

  • Eviction lawsuits for major contract breaches or unpaid rent

  • Compensation lawsuits for damages or contract violations

  • Security deposit recovery lawsuits

Since September 2022, Turkey introduced a mandatory mediation mechanism before filing rental disputes in court. If a case is filed without prior mediation, it will be rejected. This aims to reduce the court’s burden and speed up dispute resolution.

Practical Tips for Tenants and Landlords

Tips for Tenants:

  1. Read the contract thoroughly before signing—seek translation help if needed.

  2. Document the property’s condition at move-in with photos and videos.

  3. Pay rent on time to avoid legal issues.

  4. Report problems immediately to the landlord.

  5. Keep payment receipts, including rent and deposit payments.

  6. Know your rights under Turkish law.

  7. Plan for annual increases, especially now that rent caps are lifted.

Tips for Landlords:

  1. Draft a detailed lease agreement that protects your interests.

  2. Screen tenants before signing any agreement.

  3. Document property condition before and after the lease period.

  4. Perform timely maintenance to preserve property value.

  5. Maintain accurate records of payments and communications.

  6. Understand your legal obligations as a landlord.

  7. Comply with legal limits on annual rent increases.

Conclusion

Understanding rental laws in Turkey is crucial to ensuring a successful and conflict-free rental experience. Whether you’re a landlord or a tenant, knowing your rights and responsibilities and adhering to the relevant laws will help prevent disputes and foster a positive rental relationship.

Turkey’s rental laws offer balanced protections for both parties, with effective mechanisms for resolving conflicts. With ongoing changes—especially concerning rent increases—it is advisable to stay updated on the latest regulations and seek legal advice when necessary.

We hope this guide has provided you with valuable insights into Turkey’s rental laws and assists you in making informed decisions in your real estate journey in this beautiful country.