Last update: 26.02.2026
Rapidly increasing inflation has led previously set rent and rent increase rates to become disconnected from reality. Moreover, Law No. 7409 and 7456 limited rent increase rates to significantly lower levels, to 25%, despite higher inflation of around 100%. This situation created problems for both tenants and landlords, resulting in disputes. Rent increase lawsuits are regulated under the Turkish Code of Obligations and can be initiated by tenants, property owners, and landlords in residential and commercial lease relationships. This article will cover the definition, requirements, outcomes, and frequently asked questions about the rent increase lawsuits in Turkey.
What is a rent increase lawsuit?
A rent increase lawsuit or rent determination lawsuit is a legal case that allows the rent to be determined by a judge independently of the amount specified in the contract. It is regulated under Article 344 of Turkish Code of Obligations, titled "Determination of Rent," stating that the rent for each new rental year should be determined based on the twelve-month average change rate in the consumer price index, the condition of the property, and rents of similar flats. Thus, the judge determines the rent considering various conditions and the mutual benefit of the parties.
In practice, it allows the rent amount to be determined by the judge with a higher increase rate than the rate stated in the contract. This serves landlords by ensuring that, after an equity adjustment, the rent is set at a rate closer to the market value. The benefit of a rent determination lawsuit for tenants is that the rent is set fairly, and any increases over the next five years are going to be based on the determined amount.
The competent court for rent increase lawsuits
The competent court for rent increase lawsuits is the court of peace (sulh hukuk mahkemesi). According to Article 4 titled "Jurisdiction of Courts of Peace" in the Code of Civil Procedure, courts of peace are responsible for resolving all disputes related to rental relationships, including rent claims arising from leased immovable properties, separate from the provisions regarding the non-executory eviction of leased immovable properties under the Law on the Execution and Bankruptcy No. 2004.
Conditions for rent increase lawsuit
Once the conditions for the rent determination lawsuit in Turkey are met, legal action can be initiated. The first essential condition is that the lease contract must have been established as either an oral or written agreement. Additionally, it can be filed only for residential or commercial property. Apart from these conditions, the following requirements are also considered.
When can a rent increase lawsuit be filed?
Article 345 of the Turkish Code of Obligations states that a rent increase lawsuit can be filed at any time. However, in practice, parties often wish to increase the rent by a higher rate than stipulated in the contract. The most critical condition for a rent increase lawsuit is the time condition, and the starting date of the contract plays an essential role in determining this period. According to Article 344/3, the judge determines the rent after five years have passed since the commencement of the lease or at the end of each subsequent five years. Therefore, if a rent increase is asked before a five-year period, a rent increase more than the official rate is not possible. In such cases where the rent is considered low, a rent adjustment lawsuit may be filed.
A rent determination lawsuit can be filed at any time. However, for the rent to be increased beyond the amount specified in the contract, a period of five years must have elapsed by the time the lawsuit is filed. On the other hand, if a formal notice has been sent to request an increase beyond the contractually agreed amount, the period for filing the lawsuit will be extended by one rental year. For example, if the lease agreement dates back to May 2016 and the rent determination is sought for the May 2026-2027 rental year, sending a formal notice at least 30 days before May 2026 will extend the period for filing the rent determination lawsuit until May 2027. If the 30 days are missed, the rent can still be determined for the following rental period upon the plaintiff’s request.
In a precedent, it is stated: "However, since the plaintiff has requested the rent determination to be set as of 01.04.2014, considering that a new period began on 01.04.2015 during the proceedings after the lawsuit was filed on 09.05.2014, the court must ask the plaintiff whether they also request the determination of the rent for the following period. If they do, a decision should be made regarding the rent determination for the next period; otherwise, the case should be dismissed."
Notification condition for a rent increase lawsuit
Another essential requirement for a rent increase lawsuit is the notification condition. This can be accomplished by either directly filing a lawsuit or sending a formal notice. The notice must be sent to the recipient through a notary public. The notice will be effective for the new rental period and must be delivered at least 30 days before the beginning of the new period. Otherwise, the rent increase lawsuit will not be meeting the notice requirement for the new period, and the rent for the desired period will not be determined. Therefore, the notice must be sent at least 30 days before the new period to meet the condition for a rent increase lawsuit. Otherwise, the rent will be determined for the following year.
Notice Requirement in Rent Increase Lawsuits Where the Lease Contains an Escalation Clause
Pursuant to Article 345 of the Turkish Code of Obligations No. 6098 and the well-established jurisprudence of the Court of Cassation, for the rent increased by the court in a rent increase lawsuit to take effect as of the beginning of the new lease term, certain timing requirements must be satisfied.
As a general rule, the rent increase lawsuit must be filed at least thirty days prior to the commencement of the new lease term, or the lessor must provide written notice within this period indicating that the rent will be increased. If this requirement is not met, the rent amount increased by the court will, as a rule, take effect only for the subsequent lease term. However, in cases where the lawsuit is filed after the new lease term has already commenced, whether the court’s decision will be effective retroactively from the beginning of that term depends on whether the lease agreement contains an escalation clause. In practice, this distinction is decisive.
According to the settled case law of the Court of Cassation, where the lease agreement includes an escalation provision reflecting the parties’ intent (for example, an increase based on CPI, PPI, inflation rates, or a fixed percentage), failure to comply with the thirty-day filing requirement or the written notice requirement does not prevent the court-ordered rent increase from taking effect as of the beginning of the new lease term. The rationale underlying this approach is that the tenant, by virtue of the contractual escalation mechanism, is already in a position to foresee that the rent will increase in the new term. Therefore, an additional formal notice is not deemed mandatory.
In its decision numbered E. 2015/2292, K. 2015/2939, the 6th Civil Chamber of the Court of Cassation explicitly held that where the lease contains an escalation clause, a lawsuit filed until the end of the new lease term may result in a rent increase effective from the beginning of that term, without the need for prior notice. Similarly, in decision E. 2014/8948, the same Chamber stated that the existence of an escalation clause entitles the lessor to seek a judicial rent increase for the ongoing lease term, provided that the lawsuit is filed before the end of that term, without requiring a prior notice to be served before the term expires.
In decision E. 2016/9167 of the 6th Civil Chamber, although the lawsuit was filed after the commencement of the new lease term despite the presence of an escalation clause, the court accepted that determining the increased rent effective from the beginning of the term was not procedurally improper. On the other hand, in certain decisions, even where an escalation clause existed, courts have determined the increased rent as of the date of filing rather than from the beginning of the lease term, pursuant to Article 26 of the Code of Civil Procedure No. 6100, which binds the court to the scope of the claimant’s request. This situation does not constitute an exception to the established principle but rather reflects the natural consequence of the claimant limiting the relief sought.
The scope of what constitutes an escalation clause is interpreted broadly by the Court of Cassation. In decision E. 2017/738 of the 3rd Civil Chamber, even a provision stating that “the parties shall meet for the new term” was deemed sufficient to qualify as an escalation clause. In the presence of such provisions, it is possible to file a rent increase lawsuit until the end of the new lease term without the necessity of serving a written notice thirty days in advance.
In conclusion, where the lease agreement contains an explicit or implicit escalation mechanism, the thirty-day notice or filing requirement does not apply to rent increase lawsuits filed after the commencement of the new lease term. Accordingly, in rent increase disputes, the lease provisions must first be carefully reviewed, and the existence and scope of any escalation clause must be subjected to a precise legal analysis.
How is the rent amount calculated in a rent increase lawsuit?
The rent in a rent increase lawsuit is determined by the judge, considering the twelve-month average change rate in the consumer price index, the condition of the rental property, and the rent of similar flats, ensuring fairness.
In a precedent decision by the 3rd Civil Chamber of the Court of Cassation (Case No. 2021/5455, Decision No. 2021/8864, dated 22.09.2021), it was stated:
"According to the High Court of Appeals General Assembly's decision dated 18/11/1964 and numbered 2/4, as well as established Court of Cassation practices, when determining the rental amount in accordance with the 'right and fairness' principle, … comparable lease agreements must be included in the case file, the leased property and comparable properties must be examined one by one by an expert, and the obtained data must be concretized. All characteristics affecting the rental price (such as location, surroundings, features, usage, lease start date, and duration) should be compared separately. … The rental price that the subject property could yield if leased anew should be determined, and the judge must rule on a reasonable rent amount that aligns with fairness and particularly with the legitimate expectations of the parties under the lease agreement."
Frequently Asked Questions
Outcome of a Rent Increase Lawsuit
With the court order rent for the claimed period is determined, and if there is a difference between the determined amount and the amount actually paid, retroactive execution can be carried out. Before filing a lawsuit, it is crucial to ensure that the conditions for a rent increase lawsuit are met to avoid loss of rights and time. Considering the time this lawsuit might take and the dispute between the parties seems unresolvable, eviction of the tenant is another option at hand. Consulting a real estate lawyer for a rent increase lawsuit or rent adjustment lawsuit can help expedite the resolution of your problems. Therefore, in cases concerning rent increase lawsuits in Turkey seeking advice from a real estate law firm in Turkey is essential.
For any questions or legal assistance regarding this matter, you may contact us at info@paldimoglu.av.tr.