Rent Increases: The Legal Limit and Rent Determination Lawsuits

The annual increase on residential rent is capped by Article 344 of the Turkish Code of Obligations. The parties can agree on an increase rate in the contract, but that rate cannot exceed the legal limit.

The legal limit

The increase applied for renewed rental periods cannot exceed the twelve-month average change in the consumer price index (CPI/TÜFE) for the preceding rental year. Even if the contract states a higher rate, it is capped at this limit. The temporary 25% cap that applied for a specific period has ended, and the general rule now applies.

Example

If the rent is 30,000 TL and TÜİK's published twelve-month average CPI change for the preceding rental year is 40%, the new rent can be at most 42,000 TL. If the contract sets a lower rate, that rate applies instead.

After five years: rent determination

For contracts longer than five years, or renewed after five years, the rent for the new rental year can be set by a judge on equitable grounds, taking into account the CPI change, the condition of the property, and comparable rents. Landlords use this route when a rent has fallen well below the market rate.

Mediation

For rent disputes such as rent determination and adjustment, applying to a mediator is mandatory before filing a lawsuit. If mediation doesn't produce an agreement, the matter proceeds to court.