Rent & Lease Disputes
Rent Determination Lawsuit in Türkiye (Kira Tespit Davası): How a Landlord or Tenant Asks the Court to Set the Rent
When a lease of a home or a roofed business premises is renewed, landlord and tenant can agree on the new rent, but the Turkish Code of Obligations limits that freedom and, where there is no agreement or five years have passed, hands the question to a judge. This guide explains the consumer price index ceiling in Article 344, the five-year rule, the two temporary twenty-five percent provisions of 2022 and 2023 and their date ranges, the timing rules of Article 345 that decide from when a court-set rent applies, the mandatory mediation step and the role of the civil court of peace.
This guide is written for foreign nationals who let out a flat or an office in Türkiye, or who rent one, and who want to understand how the rent for a new rental period is fixed when the parties do not agree. It covers the Code of Obligations rules on rent, the timing rules for filing, the mandatory mediation step and the court that hears the case. It describes what the statutes say; it does not describe how a particular court calculates a rent.
1. Which Leases These Rules Cover, and the One Change Allowed Against the Tenant (Articles 339 and 343)
The rules discussed in this guide sit in the part of the Turkish Code of Obligations No. 6098 (Türk Borçlar Kanunu, TBK) on leases of homes and roofed business premises (konut ve çatılı işyeri kiraları). Under Article 339, those provisions also apply to goods whose use is left to the tenant together with the premises. They do not apply to immovables that by their nature are dedicated to temporary use and are leased for six months or less, and they apply to all lease contracts made by public institutions and bodies, whatever procedure those contracts follow.
Article 343 sets the frame for everything that follows: in lease contracts, no change may be made to the detriment of the tenant, except for the determination of the rent. Other terms of the lease cannot be changed to the tenant's detriment; the determination of the rent is the exception the article names, and Article 344 then sets the limits within which the rent may be determined.
For a foreign owner who lets a flat in Istanbul, or a foreign tenant who rents one, this means that the conversation at renewal time is, in legal terms, a conversation about Article 344. Article 343 does not allow other terms to be changed to the tenant's detriment, whether at renewal or at another time. Our guide to rental deposits in Turkey covers the separate rule on the security a tenant may be asked to give.
2. An Agreed Increase: The Consumer Price Index Ceiling in Article 344(1)
The first paragraph of Article 344 deals with what the parties agree. Agreements of the parties on the rent to apply in renewed rental periods are valid on condition that they do not exceed the change rate in the twelve-month averages of the consumer price index (tüketici fiyat endeksi, TÜFE) in the previous rental year. The article adds that this rule also applies to lease contracts longer than one year.
The wording has a history. By Law No. 7161 of 17 January 2019, the reference to the increase in the producer price index was replaced by the change in the twelve-month averages of the consumer price index; the amendment table annexed to the Code states that it applies from 1 January 2019. Three features of the current text are worth noting:
- It speaks of renewed periods. The ceiling concerns the rent for a rental period that is renewed, and it applies to leases longer than one year as well.
- It is a condition of validity. An increase agreed in the lease or at renewal is valid on the condition that it stays within the change rate; the article itself does not set out a further consequence.
- It refers to an official index. The reference point is the change rate in the twelve-month averages of the consumer price index for the previous rental year, not an amount chosen by either party.
A lease clause that provides for a yearly increase is therefore read together with Article 344(1). Whether a particular clause stays within the ceiling depends on the figures for the rental year concerned, which a party can check against the published index before agreeing or before paying.
3. No Agreement: The Judge Sets the Rent on Equity, Within the Same Ceiling (Article 344(2))
Where the parties have not agreed, the second paragraph of Article 344 provides that the rent is determined by the judge on equity (hakkaniyet), taking into account the condition of the leased property, on condition that it does not exceed the change rate in the twelve-month averages of the consumer price index of the previous rental year.
Two elements are fixed by the text. The first is a ceiling: in a determination under paragraph 2, the judge does not go beyond the consumer price index change rate of the previous rental year. The second is the method: within that ceiling, the judge decides on equity and looks at the condition of the leased property. The article does not prescribe a formula for weighing those elements; how they apply to a given flat or office is assessed by the court on the facts of the case.
This paragraph is the basis on which a landlord who could not reach agreement with the tenant may ask the court to set the rent for the renewed period. The timing of that request, which decides from when the rent set by the court applies, is governed by Article 345 (Section 6).
4. The Five-Year Rule and Rent Agreed in Foreign Currency (Article 344(3) and (4))
The third paragraph of Article 344 changes the picture once a lease has run long enough. Regardless of whether the parties have made an agreement on this point, in lease contracts longer than five years or renewed after five years, and at the end of every five years thereafter, the rent to apply in the new rental year is determined by the judge on equity, taking into account the change rate in the twelve-month averages of the consumer price index, the condition of the leased property and comparable rents (emsal kira bedelleri).
The difference from paragraph 2 lies in the wording. Paragraph 2 sets the consumer price index change rate as an upper limit (“on condition that it does not exceed”). Paragraph 3 lists the index as one of the elements to be taken into account, together with the condition of the property and comparable rents, and does not repeat the words “on condition that it does not exceed”. The paragraph continues: the rent determined in this way may be changed in the rental years following each five-year period according to the principles in the preceding paragraphs.
The fourth paragraph deals with rent agreed in a foreign currency:
- No change before five years: where the rent is agreed in a foreign currency, no change may be made to the rent until five years have passed, subject to the provisions of Law No. 1567 on the Protection of the Value of the Turkish Currency of 20 February 1930 (reference added by Law No. 7161).
- Excessive difficulty of performance reserved: the paragraph states that Article 138 of the Code, headed “excessive difficulty of performance” (aşırı ifa güçlüğü), is reserved.
- After five years: in determining the rent, the third paragraph is applied, also taking into account changes in the value of the foreign currency.
Whether a foreign-currency rent clause is permitted in a given lease is a matter of Law No. 1567 and the rules made under it, which this guide does not cover. What Article 344(4) itself says is limited to the points above.
5. The Temporary Twenty-Five Percent Provisions of 2022 and 2023
Two temporary articles were added to the Code for residential leases. Temporary Article 1, added by Law No. 7409 of 8 June 2022, covered rental periods renewed between its entry into force and 1 July 2023 (that date included). Temporary Article 2, added by Law No. 7456 of 14 July 2023, covered rental periods renewed between 2 July 2023 and 1 July 2024 (both dates included).
In both texts, agreements on the rent for those renewed periods were valid on condition that they did not exceed twenty-five percent of the rent of the previous rental year; where the consumer price index change rate of the previous rental year stayed below twenty-five percent, the change rate applied; the rule also applied to leases longer than one year; contracts exceeding these rates were invalid as to the excess; and each provision also applied to decisions given by the judge under Article 344(2).
Both temporary articles are written for residential leases and for periods renewed within the date ranges stated in them, the later of which ends on 1 July 2024. A rental period renewed after that date is outside the ranges written in either article, and the rent for it is assessed under Article 344 as described above. A dispute about a past period that was renewed within one of those ranges is assessed by the court under the article covering that period.
6. When to File, and From When the New Rent Applies (Article 345)
Article 345, headed time for filing and effect of the decision, opens with a simple rule: an action for the determination of rent may be filed at any time. The second and third paragraphs then decide something that matters as much as the amount: the date from which the rent set by the court applies.
- Filed thirty days in advance: where the action is filed at a date no later than thirty days before the start of the new period, the rent determined by the court binds the tenant from the start of that new rental period (Art. 345(2)).
- Written notice by the landlord: the same effect applies where the landlord has notified the tenant in writing within that period that the rent will be increased and the action is filed by the end of the following new rental period (Art. 345(2)).
- Increase clause in the contract: where the contract contains a clause that the rent will be increased in the new rental period, the rent determined by the court in an action filed by the end of the new rental period is also valid from the start of that new period (Art. 345(3)).
Article 345 does not set out, in these paragraphs, from when the rent applies where an action falls outside these situations; that question is decided by the court on the facts and dates of the case. For a landlord, the practical point is to keep the dates: the start of each rental period, the date of any written notice and the date of filing. For a tenant, the same dates show whether a rent set later by the court can reach back to the start of the period.
The article does not name who may bring the action. The second paragraph refers to a written notice sent by the landlord and to the rent binding the tenant; whether a claim brought by a tenant is admissible on its facts is a matter for the court.
7. Mediation Comes First: Articles 18/A and 18/B of the Mediation Law
Article 18/B of the Law on Mediation in Civil Disputes No. 6325 (Hukuk Uyuşmazlıklarında Arabuluculuk Kanunu, HUAK), added by Law No. 7445 of 28 March 2023, makes applying to a mediator before a lawsuit is filed a condition of the action (dava şartı) in disputes arising from the lease relationship (kira ilişkisinden kaynaklanan uyuşmazlıklar), except for the provisions on the eviction of leased immovables through enforcement without judgment under the Enforcement and Bankruptcy Law No. 2004. The text covers lease disputes in general and names that one exception; a disagreement about the amount of rent for a new period is a dispute about the lease relationship.
The general rules for mandatory mediation are in Article 18/A:
- Where to apply: the application is made to the mediation office in the place of the court having jurisdiction over the dispute, or, where no mediation office has been set up, to the designated court registry (Art. 18/A(4)).
- The final report goes with the claim: the claimant must attach to the statement of claim the original, or a copy approved by the mediator, of the final report stating that no agreement was reached; if a claim is filed without applying to a mediator, the action is dismissed on procedural grounds for lack of a condition of the action without any further step (Art. 18/A(2)).
- Limitation and time limits: from the application to the mediation office until the date of the final report, limitation is suspended and time limits for the loss of rights (hak düşürücü süre) do not run (Art. 18/A(15)). Whether a particular date in Article 345 is affected by this rule is assessed by the court; the text of Article 18/A(15) does not mention Article 345.
- If the parties agree: the agreement document is drawn up taking into account the statutory restrictions, procedures and principles concerning the immovable (Art. 18/B(2)), and obtaining an enforceability annotation is compulsory. The article designates the civil court of peace: for agreement documents concerning an immovable, the court where the immovable is located; for other agreement documents, the court where the mediator acted (Art. 18/B(3)).
Because the dates in Article 345 matter, a party who wants a court-set rent to apply from the start of a period has reason to plan the mediation application and the filing together, with the lease and any written notice ready at the first meeting.
8. The Court and the Evidence: Civil Court of Peace and Expert Opinion (HMK Articles 4, 266 and 282)
Under Article 4(1)(a) of the Code of Civil Procedure No. 6100 (Hukuk Muhakemeleri Kanunu, HMK), civil courts of peace (sulh hukuk mahkemeleri) hear, regardless of the value or amount of the subject matter, actions concerning all disputes arising from the lease relationship, including claims for receivables arising from it, and actions brought against those actions, except for the provisions on eviction through enforcement without judgment under Law No. 2004. A rent determination action is therefore filed before the civil court of peace.
Article 344 asks the judge to look at the condition of the leased property and, under paragraph 3, at comparable rents. The Code of Civil Procedure sets the limits on how outside knowledge enters the file:
- When an expert is heard: under Article 266, the court decides to obtain the opinion of an expert (bilirkişi) in cases whose resolution requires special or technical knowledge outside the law, on the request of a party or of its own motion.
- When an expert may not be heard: the same article provides that an expert may not be appointed on matters that can be resolved with general knowledge or experience, or with the legal knowledge required by the judge's profession, and that persons with legal training may not be appointed as experts unless they document separate expertise outside the field of law.
- How the opinion is weighed: under Article 282, the judge assesses the expert's opinion freely, together with the other evidence.
Whether an expert is appointed in a given rent case, and how an expert approaches comparable rents, are matters for the court within these provisions. What a party can do is put the relevant material before the court: the lease, the payment record, any written notice, documents on the condition of the property and, where paragraph 3 applies, information on comparable leases.
9. Agreed Increase, Court Determination and the Five-Year Rule Side by Side
The table compares the three ways the rent for a renewed period can be fixed under Article 344. Each entry follows the text of the paragraph cited.
| Point | Agreed increase clause | Court determination without agreement | Five-year determination |
|---|---|---|---|
| Legal basis | TBK Art. 344(1) | TBK Art. 344(2) | TBK Art. 344(3) |
| Who sets the rent | The parties, for renewed rental periods | The judge, where the parties have not agreed | The judge, regardless of whether the parties have agreed |
| Consumer price index | Valid on condition it does not exceed the change rate in the twelve-month averages for the previous rental year | Not exceeding the change rate in the twelve-month averages of the previous rental year | Taken into account as one element, together with the others in this column |
| Other elements | Not stated in the paragraph | Equity, taking into account the condition of the leased property | Equity, the condition of the leased property and comparable rents |
| When it applies | Renewed rental periods, including leases longer than one year | Renewed periods where there is no agreement | Leases longer than five years or renewed after five years, and at the end of every five years thereafter |
| From when the court-set rent applies | Not applicable (agreement) | As set out in Art. 345(2) and (3) | As set out in Art. 345(2) and (3) |
10. Landlord and Tenant: Who Does What Under the Code
The second table sets the landlord's and the tenant's positions next to each other. It follows the text of the articles cited and does not describe court practice.
| Point | Landlord | Tenant |
|---|---|---|
| Changes at renewal | May agree or seek a determination of the rent; no other change to the tenant's detriment (TBK Art. 343) | Protected against changes to his or her detriment other than the determination of rent (TBK Art. 343) |
| Agreed increase | Valid within the consumer price index ceiling (TBK Art. 344(1)) | Same ceiling applies to what the tenant agrees (TBK Art. 344(1)) |
| Written notice | May notify the tenant in writing, within the period in Art. 345(2), that the rent will be increased | The date of the landlord's written notice and the dates of the rental period matter under Art. 345(2) |
| Bringing the action | The action may be filed at any time (TBK Art. 345(1)) | Art. 345 does not name who may file; admissibility is assessed by the court |
| Before filing | Must apply to a mediator first; final report attached to the claim (HUAK Arts. 18/B(1)(a) and 18/A(2)) | Same rule if the tenant is the claimant (HUAK Arts. 18/B(1)(a) and 18/A(2)) |
| Court | Civil court of peace, regardless of value (HMK Art. 4(1)(a)) | Civil court of peace, regardless of value (HMK Art. 4(1)(a)) |
11. Step by Step: A Rent Dispute at Renewal
The steps below follow the order in which the provisions come into play, from reading the lease to filing the action. They concern documents and dates a landlord or a tenant can prepare; they are not a description of court practice.
- Check that the lease is a lease of a home or a roofed business premises within Article 339, and note the start date of each rental period.
- Read the rent clause: is there an agreed increase, and does it stay within the consumer price index change rate of the previous rental year (TBK Art. 344(1))?
- Count the years: is the lease longer than five years, renewed after five years, or at the end of a further five-year period (TBK Art. 344(3))? Is the rent agreed in a foreign currency (TBK Art. 344(4))?
- For a past period renewed between 11 June 2022 and 1 July 2024, check whether one of the temporary twenty-five percent articles covered it (Temporary Articles 1 and 2, Laws No. 7409 and 7456).
- Plan the dates: filing at least thirty days before the new period, or a written notice by the landlord within that period followed by filing before the end of the next period, or an increase clause in the contract (TBK Art. 345).
- Apply to the mediation office where the competent court is located; it is a condition of the action (HUAK Arts. 18/B(1)(a) and 18/A(4)).
- If you agree, obtain the compulsory enforceability annotation from the civil court of peace designated in Article 18/B(3).
- If you do not agree, file the action before the civil court of peace with the final mediation report attached (HMK Art. 4(1)(a); HUAK Art. 18/A(2)), together with the lease, notices, payment record and material on the condition of the property and comparable leases.
Each of these points is easier to handle with the documents in front of you: the lease and any annexes, written notices exchanged on the rent, the payment record and photographs or reports on the condition of the property. Where the dispute turns into a question of leaving the premises, our guide to the eviction undertaking in Turkey covers a different set of rules.
Frequently Asked Questions
What is a rent determination lawsuit (kira tespit davası) in Türkiye?
It is an action asking the judge to determine the rent for a lease of a home or a roofed business premises. Under Article 344(2) of the Code of Obligations, where the parties have not agreed, the judge determines the rent on equity, taking into account the condition of the leased property, without exceeding the change rate in the twelve-month averages of the consumer price index of the previous rental year. Under Article 344(3), in leases longer than five years or renewed after five years, and at the end of every five years thereafter, the judge determines the rent on equity, taking into account that change rate, the condition of the property and comparable rents.
Can my landlord raise the rent by more than the consumer price index?
Under Article 344(1), agreements on the rent for renewed rental periods are valid on condition that they do not exceed the change rate in the twelve-month averages of the consumer price index in the previous rental year, and this also applies to leases longer than one year. Article 344(3) is different: once a lease is longer than five years or has been renewed after five years, and at the end of every five years thereafter, the judge determines the rent on equity, taking into account the index, the condition of the property and comparable rents, without the words on not exceeding the index.
Is the twenty-five percent cap still in force?
The two temporary articles that set a twenty-five percent limit for residential leases covered rental periods renewed between their entry into force in 2022 and 1 July 2023 (Temporary Article 1, Law No. 7409) and between 2 July 2023 and 1 July 2024 (Temporary Article 2, Law No. 7456), both dates included. A rental period renewed after 1 July 2024 is outside the ranges written in either article and is assessed under Article 344.
When should the action be filed?
Under Article 345, the action may be filed at any time. The rent set by the court binds the tenant from the start of the new rental period where the action is filed no later than thirty days before that period starts, or where the landlord notified the tenant in writing within that period that the rent would be increased and the action is filed by the end of the following new rental period. Where the contract has a clause providing for an increase in the new period, the rent set in an action filed by the end of that period is also valid from its start.
Do we have to go to mediation before a rent lawsuit?
Yes. Article 18/B(1)(a) of the Mediation Law No. 6325 makes applying to a mediator before a lawsuit a condition of the action in disputes arising from the lease relationship, except for the provisions on eviction through enforcement without judgment under the Enforcement and Bankruptcy Law. Under Article 18/A(2), the claimant must attach the final report to the statement of claim, and a claim filed without applying to a mediator is dismissed on procedural grounds.
Which court hears the case?
Under Article 4(1)(a) of the Code of Civil Procedure, the civil court of peace hears actions concerning all disputes arising from the lease relationship, regardless of the value or amount of the subject matter, except for the provisions on eviction through enforcement without judgment under Law No. 2004.
Will the court appoint an expert?
Article 266 of the Code of Civil Procedure provides that the court obtains an expert opinion where the resolution requires special or technical knowledge outside the law, and that an expert may not be appointed on matters that can be resolved with general knowledge or experience or with the judge's legal knowledge. Under Article 282, the judge assesses the expert's opinion freely together with the other evidence. Whether an expert is appointed in a given case is decided by the court.
Our rent is agreed in euros. Can it be changed?
Under Article 344(4), where the rent is agreed in a foreign currency, no change may be made to the rent until five years have passed, subject to Law No. 1567 on the Protection of the Value of the Turkish Currency, and Article 138 on excessive difficulty of performance is reserved. After five years, the rent is determined under Article 344(3), also taking into account changes in the value of the foreign currency.