Leasing law in Turkey is a dynamic and evolving field, especially in 2025, as new regulations and economic factors reshape the rental landscape. For landlords, tenants, and investors navigating Istanbul’s vibrant real estate market, understanding the legal framework governing leases is crucial to protecting rights and ensuring smooth transactions.
Akkas & Associates Law Firm, a premier Istanbul-based full-service law firm established in 1992, offers unparalleled expertise in Turkish leasing law to guide you confidently through this complex terrain.
Table of Contents
- Introduction: The Dynamics of Leasing in Türkiye
- FAQs on Leasing Law in Turkey
- Reach us for Leasing Law Services in Turkey
Introduction: The Dynamics of Leasing in Türkiye
Turkey’s vibrant economy and strategic location make its real estate market a popular choice for both domestic and international investors and residents. Consequently, understanding the intricacies of leasing law in Turkey is paramount for anyone considering renting or leasing property, whether for residential or commercial purposes.
The legal framework governing lease agreements in Turkey is primarily enshrined in the Turkish Code of Obligations (Law No. 6098), which provides a comprehensive set of rules outlining the rights and obligations of both lessors (landlords) and lessees (tenants).
At Akkas & Associates Law Firm, a leading full-service law firm based in Istanbul since 1992, we have extensive experience in guiding clients through the complexities of Turkish leasing law. Our aim with this article is to provide an in-depth, professional, and informative overview of key aspects of leasing law in Turkey, ensuring you are well-equipped to navigate this crucial area of Turkish legal practice in 2025 and beyond.
I. Foundations of Turkish Leasing Law: The Turkish Code of Obligations
The Turkish Code of Obligations (TCO) serves as the primary legislation for all types of lease agreements in Turkey. It outlines general principles applicable to contracts, along with specific provisions tailored to lease relationships. Unlike some jurisdictions, Turkey does not have separate comprehensive laws for residential and commercial leases; instead, the TCO covers both, with certain distinctions and specific protections, particularly for tenants, who are often considered the economically weaker party in the contractual relationship.
Key principles embedded in the TCO include:
- Freedom of Contract (with limitations): While parties generally have the freedom to determine the terms of their lease agreement, certain provisions of the TCO are mandatory and cannot be altered by mutual agreement, especially those designed to protect tenants.
- Protection of the Tenant: The TCO leans towards protecting the tenant, particularly in residential leases, reflecting a policy aim to ensure housing security.
- Written Form: While not always a strict legal requirement for validity, it is highly recommended to formalize lease agreements in writing to ensure clarity and provide solid protection for both parties’ rights. Notarization is also frequently advised, especially for foreign parties or for agreements that might need to be used for official purposes (e.g., residence permit applications).
II. Essential Elements of a Valid Lease Agreement in Turkey
A robust and legally sound lease agreement is the cornerstone of a successful tenancy. Regardless of whether it’s a residential or commercial lease, several key elements must be clearly defined:
- Identification of Parties: Full names, addresses, and identification details of both the landlord and tenant are crucial. If a party is a legal entity, its full legal name, registration number, and authorized signatory information must be included.
- Description of the Property: A detailed and accurate description of the leased property, including its full address, type (residential, commercial, office, etc.), and current condition, is essential. For real estate, the property’s cadastral information (plot, block, parcel numbers) should also be specified.
- Duration of the Lease: The lease term can be fixed (e.g., one year) or indefinite.
- Fixed-term leases automatically convert to indefinite-term leases upon expiration unless terminated by either party with proper notice.
- For residential leases, the tenant generally has the right to extend the lease for up to 10 years, making it challenging for landlords to terminate without specific legal grounds.
- For commercial leases, different rules apply regarding termination by the landlord, especially after 10 years, where the landlord gains more flexibility to terminate with a three-month notice before the renewal date.
- Rent Amount and Payment Terms: This section outlines the exact rent amount, currency (Turkish Lira or foreign currency, subject to specific regulations), payment frequency (monthly, quarterly, annually), and acceptable payment methods.
- Rent Increases: Annual rent increases are subject to limitations. For residential leases, the maximum increase is typically capped based on the Consumer Price Index (CPI) announced by the Turkish Statistical Institute (TÜİK). In certain periods, like between June 2022 and July 2024, a temporary 25% cap was imposed on residential rent increases. For commercial leases, the rules for rent increases can be more flexible, especially for agreements entered into before certain TCO provisions became fully effective for commercial properties.
- Security Deposit (Rental Guarantee): Commonly, landlords require a security deposit to cover potential damages or unpaid rent. The contract should specify the amount (typically 1-3 months’ rent) and the precise conditions for its return at the end of the lease. Turkish law does not explicitly require the deposit to be held in a separate account, but good practice suggests transparency.
- Maintenance and Repair Responsibilities: The lease should clearly delineate which party is responsible for routine maintenance, minor repairs, and major structural repairs. Generally, landlords are responsible for major repairs that affect the habitability or usability of the property, while tenants are responsible for minor upkeep and damages caused by their own misuse or negligence.
- Termination Clauses: The conditions under which either party can terminate the lease, including required notice periods and specific grounds for termination, must be clearly defined.
For further details on drafting comprehensive lease agreements, you may refer to our dedicated article on “Lease Contracts in Turkey: 7 Facts for Tenants and Landlords” on our website.
III. Rights and Obligations of Landlords and Tenants
Understanding the specific rights and obligations enshrined in Turkish law is critical for both landlords and tenants to avoid disputes.
A. Landlord’s Rights and Obligations:
Rights:
- Right to Receive Rent: The primary right is to receive timely and full rent payments as per the agreement.
- Right to Property Use in Accordance with Agreement: The landlord can expect the tenant to use the property for the agreed-upon purpose and without causing damage beyond normal wear and tear.
- Right to Inspect (with notice): Landlords typically have the right to inspect the property with prior reasonable notice, except in emergencies.
- Right to Terminate for Valid Reasons: The landlord can terminate the lease under specific conditions outlined in the TCO, such as non-payment of rent, material breach of contract, or if the landlord or their family needs the property for personal use (subject to stringent conditions and notice periods).
Obligations:
- Delivery of Habitable/Usable Property: The landlord must deliver the property in a condition suitable for its intended use on the agreed date.
- Maintenance of Property: The landlord is generally responsible for major repairs and ensuring the property remains habitable/usable throughout the lease term.
- Respect for Tenant’s Quiet Enjoyment: The landlord must ensure the tenant’s peaceful enjoyment of the property and cannot interfere without legitimate reasons or prior notice.
- Return of Security Deposit: The security deposit must be returned promptly at the end of the lease, minus any justified deductions for damages beyond normal wear and tear or unpaid rent.
- Registration of Contract (for certain purposes): For foreign parties, especially those seeking residence permits, notarization and registration of the lease contract with tax authorities may be necessary.
B. Tenant’s Rights and Obligations:
Rights:
- Right to Habitable/Usable Property: The tenant has the right to receive a property that is fit for the agreed-upon purpose.
- Right to Peaceful Enjoyment: The landlord cannot arbitrarily interfere with the tenant’s use of the property.
- Protection Against Unjust Rent Increase: Tenants are protected by legal caps on annual rent increases.
- Right to Remain in Property: Tenants cannot be evicted without just cause and proper legal procedure.
- Right to Reimbursement for Necessary Repairs: In certain situations, if the landlord fails to perform necessary repairs, the tenant may have the right to carry out repairs and deduct the costs from the rent (subject to legal conditions).
Obligations:
- Timely Payment of Rent: The tenant’s primary obligation is to pay rent in full and on time.
- Use of Property as Agreed: The property must be used for the purpose specified in the lease agreement.
- Minor Maintenance and Cleanliness: The tenant is responsible for routine cleaning and minor upkeep.
- No Unauthorized Alterations: Significant alterations or modifications to the property require the landlord’s prior written consent.
- Return of Property in Good Condition: At the end of the lease, the tenant must return the property in the condition it was received, accounting for normal wear and tear.
IV. Navigating Lease Termination and Eviction in Turkey
Lease termination and eviction processes in Turkey are strictly regulated by the TCO, reflecting the law’s protective stance towards tenants. Landlords cannot unilaterally terminate a lease or evict a tenant without valid legal grounds and adherence to specific procedures.
Common grounds for lease termination by the landlord include:
- Non-payment of Rent: If the tenant fails to pay rent, the landlord can initiate collection proceedings and, after providing two justified written warnings within one lease term, can initiate an eviction lawsuit.
- Material Breach of Contract: Violation of other significant lease terms (e.g., unauthorized subletting, causing significant damage, using the property for an illegal purpose).
- Owner’s Need for Property: If the landlord or their close family members genuinely need the property for their own residence or business, they may terminate the lease. This ground is subject to strict judicial scrutiny to prevent abuse.
- Necessary Renovation: If the property requires extensive and essential renovation or reconstruction that makes continued tenancy impossible, the landlord may terminate the lease. Again, this is subject to proof and a defined process.
- Expiration of 10 Years (for commercial leases): After 10 years of a commercial lease, the landlord gains more flexibility to terminate the contract by giving written notice three months prior to the lease renewal date.
Important Considerations for Eviction:
- Judicial Process: In most cases, landlords cannot physically evict a tenant without a court order. The eviction process involves filing a lawsuit in the Civil Courts of Peace.
- Notice Periods: Specific notice periods are mandated for different termination grounds. Failure to adhere to these periods can invalidate the termination.
- Mediation as a Mandatory Precondition (2025 update): As of March 28, 2023, mediation became a mandatory precondition for filing a lawsuit in most landlord-tenant disputes in Turkey. This means parties must attempt mediation before proceeding to court, aimed at fostering out-of-court settlements and reducing litigation burdens. This is a crucial development to consider in 2025.
For comprehensive assistance with lease terminations and eviction procedures, including understanding the mediation requirement, consulting with experienced legal counsel is indispensable.
V. Commercial Leases: Specific Considerations
While the TCO generally applies, commercial leases often have additional nuances:
- Longer Terms: Commercial leases tend to be for longer fixed terms, reflecting the investment and stability required for businesses.
- Revenue Share Agreements: Beyond fixed rent, some commercial leases, particularly in retail, may include clauses for a percentage of the tenant’s revenue.
- Subletting and Assignment: Commercial lease agreements frequently contain detailed provisions regarding the tenant’s ability to sublet or assign the lease, often requiring landlord consent.
- Tax Implications: Commercial leases have specific tax implications for both landlords and tenants, including stamp duty and VAT considerations.
- Fit-out and Alterations: Commercial tenants often require more extensive fit-out or alteration rights, which should be clearly outlined in the agreement.
Given the complexities and higher stakes often involved, seeking specialized legal advice for commercial leasing agreements is highly recommended.
FAQs on Leasing Law in Turkey
Q1: Is a written lease agreement mandatory in Turkey? A1: While verbal agreements can be legally binding, it is highly recommended to have a written lease agreement. A written contract clearly defines the terms, rights, and obligations of both parties, providing crucial evidence in case of disputes. Notarization is also advisable, especially for foreigners.
Q2: How much can a landlord increase the rent in Turkey? A2: For residential leases, the annual rent increase is capped at the Consumer Price Index (CPI) announced by the Turkish Statistical Institute (TÜİK). There was a temporary 25% cap on residential rent increases between June 11, 2022, and July 1, 2024. For commercial leases, the increase can be more flexible depending on the contract and certain TCO provisions, but often still tied to official inflation rates.
Q3: Can a landlord evict a tenant without a court order in Turkey? A3: Generally, no. Landlords cannot physically evict a tenant without a valid court order or a mutually agreed-upon eviction commitment. The Turkish Code of Obligations provides strong protections for tenants against arbitrary eviction, requiring specific legal grounds and adherence to proper judicial procedures.
Q4: What are the main grounds for a landlord to terminate a lease agreement? A4: Common grounds include non-payment of rent, significant breach of contract by the tenant, the landlord or their family’s genuine need for the property, or necessary extensive renovations making the property unusable. Specific procedures and notice periods apply to each ground.
Q5: Is mediation mandatory for rental disputes in Turkey? A5: Yes, as of March 28, 2023, mediation is a mandatory precondition for most landlord-tenant disputes in Turkey before a lawsuit can be filed. This aims to encourage out-of-court settlements and streamline dispute resolution.
Q6: What is a security deposit, and when should it be returned? A6: A security deposit (rental guarantee) is an amount, typically 1-3 months’ rent, held by the landlord to cover potential damages or unpaid rent. It should be returned to the tenant at the end of the lease term, provided the property is returned in good condition (allowing for normal wear and tear) and all rental obligations are met.
Q7: Do foreign individuals and entities have the same leasing rights as Turkish citizens? A7: Yes, generally, foreign individuals and legal entities have the same rights and obligations regarding leasing real property in Turkey as Turkish citizens, subject to the same terms and conditions under the Turkish Code of Obligations.
Navigating the complexities of leasing law in Turkey requires expert legal guidance to safeguard your interests. Whether you are a landlord seeking to protect your investment or a tenant aiming to secure your residential or commercial space, understanding the nuances of Turkish leasing law is critical.
From drafting legally sound lease agreements to resolving potential disputes, the experienced team at Akkas & Associates Law Firm is equipped to provide comprehensive and strategic legal solutions.
Reach us for Leasing Law Services in Turkey
Navigating Turkey’s complex leasing law framework requires specialized legal expertise and thorough understanding of current regulations. Whether you’re a property owner, tenant, or investor dealing with residential or commercial lease agreements, professional legal guidance is essential for protecting your interests and ensuring compliance with Turkish leasing law.
At Akkas & Associates Law Firm, our experienced legal team has been providing comprehensive leasing law services in Turkey since 1992. We understand the intricacies of Turkish property law, tenant rights, landlord obligations, and dispute resolution procedures. Our expertise covers all aspects of leasing law, from contract preparation and review to complex litigation and arbitration proceedings.
Don’t navigate Turkey’s leasing law complexities alone. Contact Akkas & Associates Law Firm today for professional legal consultation and representation. Our dedicated team is ready to provide the expert guidance you need for successful property leasing transactions in Turkey.
Please fill out and submit the form below to make an appointment.
