Rent determination lawsuit is filed for the court to determine the rent price in accordance with the right and fairness in case the parties cannot agree on the new rent amount during the renewal of the lease contract.
Legal Basis: TBK art.344
"Agreements of the parties regarding the rental fee to be applied in the renewed rental periods are valid, provided that they do not exceed the rate of change in the consumer price index according to the twelve-month averages in the previous rental year."
If there is no agreement, the rental fee is determined by the judge under the same conditions. With the temporary regulation in housing rents, the increase limit has been applied as 25% for a certain period of time (law changes should be followed).
Difference between Rent Determination Case and Adaptation Case
Rent Determination Case
- Determines the new fee to be applied for the renewal of the lease period.
- After a period of 5 years, the judge makes a determination based on factors such as comparable rental price, value of the real estate, environmental conditions
- Effect: at the beginning of the new lease year.
Adaptation Case (TBK article 138)
- It is opened if an unforeseen hardship of performance arises when the contract is established.
- Extraordinary situations such as high inflation, exchange rate increase, currency crisis.
- Effect: immediately switch to the adapted cost.
Jurisprudence of the 3rd Civil Chamber of the Supreme Court
The 3rd Civil Chamber of the Supreme Court of Appeals emphasized that when determining the new rental price at the end of the 5-year period, the judge should evaluate the precedent rental fee review, expert report and current market value of the real estate together. It is not enough to just stick to the CPI increase.
The same Chamber stated that in adaptation cases, the burden of proof of extreme difficulty lies on the plaintiff, and that ordinary market fluctuations will not be considered as a reason for adaptation.
Time to File a Lawsuit
The rent determination lawsuit is applied starting from that year if a notice is notified 30 days before the start of the new rental year or if a lawsuit is filed within the new rental year. Otherwise, it will be valid for the next rental year.
Jurisdictional and Competent Court
- Officer: Civil Court of Peace
- Authority:The court where the property is located
Calculation Example
Current rent: 10,000 TL. Previous period CPI 12-month average: 35%. Housing rent increase limit (temporary regulation): 25%. Increase to be applied: 25% → New rent: 12,500 TL.
If the 5-year period has expired, the judge may decide the market value exceeding this by peer review.
Since rent determination and adaptation cases are very dependent on changes in the law and case law, it is recommended that you consult with a lawyer who knows the current legislation.