Renting residences and roofed workplaces is an area where problems quite frequently occur. Below, the most frequently asked questions and answers explained to give an idea about the headlines of the practice.

Please feel free to contact Antalya Lawyer Ceren Topcu İncetaban and her Antalya Law Firm to get free information about Lease Law and Residential and Workplace Leases. ALFA team, existing of English and Dutch speaking lawyers in Antalya, make sure that you receive an answer within the same day.

• WHAT IS THE CURRENT LEGISLATION FOR RESIDENTIAL AND WORKPLACE LEASES IN THE SCOPE OF LEASE LAW?

Residential and roofed workplace leases in Turkey are subject to the Turkish Code of Obligations No. 6098 (“TCO”) and the Law on Immovable Property Leases No. 6570 (“Law No. 6570“).

• WHAT IS THE DIFFERENCE BETWEEN FIXED-TERM LEASE AGREEMENTS AND INDEFINITE-TERM LEASE AGREEMENTS?

According to TCO, lease agreements that cease with the expiration of the term and without the need for notice are defined as fixed-term lease agreements. Other lease agreements are deemed to be made for an indefinite term. Whether a term should be fixed or indefinite requires various considerations in many aspects such as the termination of the lease agreement.

• HOW IS THE RENTAL PRICE DETERMINED IN THE SCOPE OF LEASE LAW?

The landlord and the tenant can decide on the rent of a residence or a workplace in accordance with the freedom of contract. However, as the rent is an essential component of a lease agreement, it should definitely be determined or be determinable under the lease. On the other hand, rent amounts unreasonably lower than the market value shall be invalid.

• CAN THE RENTAL PRICE BE DETERMINED IN A FOREIGN CURRENCY?

To determine the rental price, the landlord and the tenant should take the Decision No. 32 on the Protection of the Value of Turkish Currency into account. This decision sets out several limitations on determining a contract value in foreign currency. The respective provision of this decision underlines the prohibition on using foreign currency for the sale and lease of immovable properties, if both parties reside in Turkey.

However, Communique No. 2008/32-34 on Decision No. 32 on the Protection of the Value of Turkish Currency mentions an exception. Accordingly, if 50% or more of the shares of a legal entity residing in Turkey belong to persons not residing in Turkey, agreements in relation to immovable properties can be determined in a foreign currency. However, it should also be noted that this regulation is regularly updated in relation to different types of transactions.

• HOW ARE RENT INCREASES DETERMINED IN THE SCOPE OF LEASE LAW?

The rent can be subject to an increase for each lease year. However, TCO has provided a legal upper limit for the benefit of the tenants. In accordance with Article 344 of TCO, the parties cannot agree on a rent increase of more than the difference of the 12-month average of the consumer price index (“CPI”), published by Turkish Statistical Institute (“TUIK”). If the parties agree on a higher rent increase, this upper limit will be applicable. Additionally, the rent increase provided above is only applicable for lease agreements in Turkish Lira. For rents determined in foreign currency, Article 344 of TCO envisages that no rent increase is allowed for the first five years of the lease.

• UNDER WHAT CIRCUMSTANCES CAN THE TENANT TERMINATE THE LEASE?

In terms of indefinite-term leases, tenants may rely on Article 329 of TCO, and they can give a three-month termination notice for each six-month lease period and terminate the lease by the end of this lease period without providing a particular reason. For definite-term leases, if a shorter termination notice period is not agreed on by the parties, the tenant can terminate the lease by giving notice to the landlord 15 days before the end of the lease term. The tenant can terminate the lease without providing a particular reason.

• CAN THE LANDLORD TERMINATE THE LEASE BY PROVIDING A TERMINATION NOTICE TO THE TENANT?

The termination right provided to the tenant under TCO is only provided to the landlord within certain limits. Accordingly, the landlord cannot terminate the lease on the basis of expiration of the lease’s term. The landlord may only terminate the lease without any justified reason upon the expiration of the 10-year renewal period, and they must give three months’ advance notice.

For landlords who are substantially limited by termination by notice in accordance with TCO, several grounds of termination are provided by TCO, which should be claimed through a lawsuit. For example, the landlord can terminate the lease through a lawsuit based on necessity, reconstruction or zoning, or necessity of the new owner.

• DOES TENANT’S BANKRUPTCY AFFECT THE LEASE IN THE SCOPE OF THE LEASE LAW?

If a tenant becomes bankrupt, the landlord has the right to request a written guarantee to be provided within a reasonable period (Article 332 of TCO. If such guarantee is not provided in due time, the landlord can terminate the lease immediately.

• WHAT HAPPENS TO THE LEASE AGREEMENT IN CASE OF A TRANSFER OF OWNERSHIP?

If the leased property is transferred to a third party by the landlord, the lease will continue to be effective (Article 310 of TCO). This means that the new owner will be bound by the lease.

• WHAT HAPPENS TO THE LEASE AGREEMENT IN CASE OF A TRANSFER OF OWNERSHIP?

The new owner cannot define new lease terms or terminate the lease without a valid cause. However, the new owner can terminate the lease if they need to use the property (Article 351 of TCO). Further, the landlord can file a lawsuit six months after the termination notice is given to the tenant, which should be given within a month following the date of the ownership transfer. Annotation of the lease to the title deed would bar the new landlord from terminating the lease through litigation in accordance with Article 351 of TCO.

• WHAT ARE THE CONSEQUENCES OF NON-PAYMENT, PART PAYMENT OR LATE PAYMENT OF THE RENT IN LINE WITH THE LEASE LAW?

A tenant who pays the rent late or partially or who does not pay it at all, may provide a termination right to the landlord. Firstly, the non-payment or part payment of the rent would lead to the tenant’s default. The landlord can provide a curing period of at least 30 days and notify the tenant that if the payment is not made within the curing period, the lease will be terminated. Additionally, if the tenant causes two rightful notices within one lease year, the landlord may initiate an evacuation lawsuit.

The issue of renting housing and roofed workplaces in the scope of lease law is a matter that needs attention. Do not hesitate to contact Antalya Lawyer Ceren Topcu İncetaban and her team existing of professionals to find out what rights you have in line with the applicable legislation. You can count on the ALFA team with English and Dutch speaking Lawyers in Antalya to find the best way to solve the lease disputes and for a detailed and understandable legal support.