Lease Law

1- Lease Agreement

The lessor giving the lessee the right to use something or to benefit from it, and the lessee
undertaking to pay the agreed-upon rent amount in return, constitute the subject matter of the lease
agreement.

2- Lease Term

The lease agreement can be made for both a specific period and an indefinite period.
Lease agreements that will terminate without the need for any notification upon the expiration of
the agreed-upon period are called fixed-term lease agreements. Lease agreements in which such a
condition is not specified are referred to as indefinite-term lease agreements.

3- Obligations of the Lessor

The lessor is obliged to deliver the leased property in accordance with the intended use specified in
the contract on the date determined by the parties and ensure that it remains in that condition
throughout the contract period.
Taxes, mandatory insurance, and similar expenses related to the leased property are borne by the
lessor unless otherwise regulated by law or agreed upon by the parties. Examples of ancillary
expenses include lighting expenses for common areas, security expenses, and fees to be paid to the
building caretaker.

4- Determination of the Rent Amount

According to the Turkish Code of Obligations, the parties to a lease agreement are free to determine
the rent amount. However, there are many limitations in the law regarding matters other than the
rent amount. The purpose of these limitations is to protect the rights of the lessee, who is considered
the weaker party in the lease agreement, according to the law.
A- Determination of the Rent Amount in a New Lease Period
The agreement reached by the parties regarding the rent amount to be applied in renewed lease
periods will be valid as long as it does not exceed the rate of change in the twelve-month averages of
the consumer price index (CPI) in the previous lease year. This rule also applies to lease agreements
lasting more than one year.
If no agreement has been made between the parties in this regard, the rent amount will be
determined by the judge, taking into account the condition of the leased property and considering
fairness, without exceeding the rate of change in the twelve-month averages of the consumer price
index in the previous lease year, through a lawsuit to be filed.
B- Lawsuit for Determination of the Rent Amount
In case of lack of agreement between the parties regarding the determination of the rent amount
and the existence of the conditions prescribed by law, the rent amount for the new lease period can
be determined through a lawsuit.
Regardless of whether the parties have reached an agreement on this matter, in lease agreements
lasting more than five years or renewed after five years, and at the end of every subsequent five
years, the rent amount to be applied in the new lease year is determined in a fair manner by the

judge, taking into account the rate of change in the twelve-month averages of the consumer price
index, the condition of the leased property, and comparable rent amounts.
In recent years, there has been a significant increase in lawsuits for the determination of the rent
amount in our country, mainly due to the global pandemic and economic conditions.

C- Lawsuit for Rent Adjustment
The conditions at the beginning of the lease agreement can be changed later due to unforeseeable
reasons by the parties. In such a case, if the lease agreement becomes unreasonably difficult for one of the parties, a lawsuit can be filed to modify the lease agreement. For this, it is necessary for the newly emerging extraordinary situation to be unforeseeable by the parties and for the continuation
of the lease agreement to become excessively burdensome for one party. Examples of such
situations can be the global Covid-19 pandemic and major economic crises.
5- Tenant’s Obligations
The tenant’s basic obligations are to pay the rent and ancillary expenses and to use the leased property with care.

If the tenant fails to pay the rent or ancillary expenses due after the delivery of the leased property, the landlord can give a written notice to the tenant, providing a certain period of time to make the
payment. If the payment is not made within this period, the landlord can terminate the agreement.
The period to be given to the tenant is at least ten days, and in residential and roofed workplace
leases, it is at least thirty days. This period starts from the day following the date of the written
notice to the tenant.

The tenant is obliged to use the leased property in accordance with the agreement and show
necessary respect to the individuals residing in the property and the neighbors.
In case of the tenant’s violation of this obligation, the landlord, in residential and roofed workplace
leases, gives a minimum of thirty days to remedy the violation, and if it is not resolved, provides a
written warning that the agreement will be terminated. In other lease relationships, the landlord can
terminate the agreement immediately by giving a written notice to the tenant without prior
notification.

In residential and roofed workplace leases, if the tenant intentionally causes significant damage to
the leased property, if it is understood that the given period to the tenant will be futile, or if the
tenant’s behavior contrary to this obligation becomes unbearable for the landlord or the individuals
residing in the property, the landlord can terminate the agreement immediately with a written
notice.

If necessary for maintenance, sale, or subsequent leasing, the tenant is obliged to allow the landlord
and the third party designated by the landlord to visit and inspect the leased property.
The landlord must inform the tenant in a reasonable period of time before these visits and
inspections take place and must consider the tenant’s rights during these activities.

6- Making Innovations and Changes on the Leased Property

The landlord has the right to make innovations and changes on the leased property that do not
require the termination of the lease agreement and can be expected to be borne by the tenant.

During the implementation of these innovations and changes, the landlord must consider the
tenant’s interests.

The tenant can make innovations and changes on the leased property with the written consent of the landlord.

If the landlord has given consent to the innovations and changes, unless otherwise agreed in writing,
the leased property cannot be demanded to be returned in its original condition.
The tenant has the right to sublease the leased property to someone else, either completely or
partially, as well as to transfer the right of use to someone else, as long as it does not cause harm to
the landlord due to the changes made.

In residential and roofed workplace leases, the tenant cannot sublease the leased property to
someone else or transfer the right of use without the written consent of the landlord.
The tenant does not have the right to transfer the lease relationship to someone else without the
written consent of the landlord. However, in roofed workplace leases, the landlord cannot refuse to
give this consent without a justifiable reason.
The person to whom the lease relationship is transferred with the written consent of the landlord
becomes a party to the lease agreement, and the transferring tenant is released from their
obligations towards the landlord.

7- Termination of the Lease Agreement

If a specific period is agreed upon by the parties for the termination of the lease agreement, the
agreement will automatically terminate at the end of this period.

If the parties continue the lease relationship without an explicit agreement, the lease agreement will
become an indefinite-term agreement.

In the event of the tenant’s death, the heirs have the right to terminate the agreement by
terminating the contract for the end of the nearest termination period, in accordance with the legal
notice period.

The tenant is obliged to return the leased property at the end of the lease agreement if they received
it in good condition. However, the tenant will not be responsible for the wear and tear and damages
that occur on the leased property due to its proper use. An example of this can be the worn-out paint
on the walls of a house that has been used for many years.

In residential and roofed workplace leases, if the tenant does not give a notice at least fifteen days
before the expiration of the term of a fixed-term agreement, the agreement will be deemed
extended for one year under the same conditions. In this case, the landlord cannot terminate the
agreement based on the expiration of the term. However, after the ten-year extension period, the
landlord can terminate the agreement without giving any reason, by giving a notice at least three
months before the end of each subsequent extension year.

In indefinite-term lease agreements, the tenant can terminate the agreement at any time, and the
landlord can terminate the agreement after ten years from the beginning of the lease, in accordance
with the conditions stipulated by the la