Introduction
Most disputes that can arise from a tenancy can actually be prevented from the outset with a few simple precautions taken at the moment the lease is formed. For owners managing their property from abroad in particular, having the lease agreement drafted completely and correctly is the most basic step that strengthens their position in any later rent valuation, rent increase, or eviction process. Yet when a property is rented out in Turkey, the lease agreement — perhaps the single most important step in the tenancy relationship — is often not drafted by a legal professional. In particular, we observe that standard lease agreements bought at stationery shops (many of which still reference law provisions that are no longer in force) or draft leases obtained through a brief internet search can lead to serious legal losses.
In this article, in which we examine the legal framework applicable to residential and commercial (roofed) leases, we address the points we believe should, at a minimum, be present in a lease agreement. It is a common misconception that forming a tenancy is simply a matter of “agreeing on the rent” and “handing over the keys” — we want to stress that this is far from the truth. In a country where rental disputes have risen sharply, we emphasize once again that the drafting stage of the lease agreement is critical, both to avoid disputes altogether and to resolve any that do arise with the least possible damage. In this article, we cover the main elements that should be addressed when drafting a residential or commercial lease agreement.
1. The Definition of a Lease Agreement Under the Turkish Code of Obligations
Under Article 299 of the Turkish Code of Obligations (TBK), a lease agreement is defined as an agreement whereby the landlord undertakes to grant the tenant the use of a thing, or its use together with the enjoyment of its fruits, and the tenant in turn undertakes to pay the agreed rent. This definition sets out the two core elements of a tenancy: granting use of the property and payment of a price in return. Drafting these two elements clearly and without leaving room for doubt prevents later disputes over questions such as “what was the intended use” or “what did the rent actually cover.”
2. Formal Requirements
Except for the exceptions provided by law, lease agreements are not subject to any formal requirement and may even be concluded orally. However, for owners living abroad in particular, an oral agreement creates serious problems of proof later regarding the rent amount, the increase rate, or the term of the lease. For this reason, it is strongly advisable to put the agreement in writing and have both parties sign the written text. A written lease is the most fundamental piece of evidence in both rent valuation lawsuits and eviction proceedings.
3. The Parties’ Identity Information and Addresses
The lease should fully state the landlord’s and tenant’s full names, Turkish ID number (or foreign ID/passport number, where applicable), and current address for service of notices. This is especially critical for owners living abroad: having the tenant’s correct and up-to-date address for service in the agreement directly affects how quickly a notice can be served or a lawsuit filed later, should that become necessary.
4. Lease Term
The agreement should clearly state whether the lease is for a fixed or indefinite term, and if fixed, the exact start and end dates. Correctly determining the lease term matters in particular for calculating when the ten-year statutory extension period will expire. In residential and commercial leases, the parties generally structure the agreement as a fixed one-year term. While this term is binding on the tenant, its expiry alone does not entitle the landlord to demand eviction. As the Turkish Code of Obligations expressly provides, the expiry of the fixed term alone does not give the landlord a direct right to eviction. Under the law, the landlord must wait for the ten-year extension period — which begins running from the end of the fixed term — to elapse, and then request eviction within the rental year that follows. Accordingly, a landlord cannot demand a tenant’s eviction merely on the ground that the one-year term set out in the agreement has expired. For more detail on this topic, see our article on Eviction Lawsuit Due to the Expiration of the Lease Term.
5. Condition of the Property and Purpose of Use
The property’s address, nature (residential/commercial), and current condition (fixtures, any damage, deficiencies, where applicable) should be described in detail in the lease itself or in an attached inspection record. This prevents later disputes, at the eviction stage, over the condition in which the property was handed over. In addition, clearly stating the purpose of use (residential use, or commercial use for a specific business activity) is also a precondition for being able to seek eviction on the ground of “use contrary to the lease” should the tenant use the property for a different purpose. This is especially vital for owners who may need to pursue eviction on the ground of improper use. For more detail, see our article on Eviction Lawsuit for Use of the Property Contrary to the Lease Contract.
6. Rent Amount and Payment Date
The rent amount, currency, and the exact date (day of the month) on which it is due should be clearly stated in the agreement. Whether the rent is paid monthly or annually should also be explicitly set out. Requiring payment into a bank account, with that account specified in the agreement, greatly simplifies both proving payment and tracking rental income. Having a clear due date also makes it easier to calculate the date of default and the associated notice periods. This is particularly critical where eviction is later sought for default in payment or for two justified warnings, since the rent amount and due date as stated in the agreement become central. For more detail on eviction lawsuits, see our articles on Eviction for Default in Rent Payment and Eviction for Two Justified Warnings.
7. Rent Increase Rate
The agreement should clearly state the basis on which the annual rent increase will be calculated (for example, the CPI rate). Under Article 344 of the TBK, the rate agreed by the parties may not exceed the twelve-month average change in the Consumer Price Index (CPI) for the preceding rental year; the parties may agree on a rate below this cap, or on a different indexing method. Leaving the agreement silent on rent increases can give rise to fresh uncertainty between the parties every year, which is why this clause should be structured clearly from the outset. For more detail, see our articles on the Rent Valuation Lawsuit and The Importance of the Rent Increase Clause.
8. Subletting and Assignment of the Tenancy
Subletting is where a tenant re-lets the rented home, business premises, or property, in whole or in part, to a third party. It is advisable to expressly state in the agreement that the tenant may not sublet the property to a third party, or assign the tenancy, without the landlord’s written consent. Unless otherwise agreed, the tenant may not resort to either of these without the landlord’s written approval; however, expressly emphasizing this in the agreement helps prevent disputes in practice and provides an added layer of protection, particularly for owners managing their property from abroad.
9. Tax, Fee, and Service Charge Obligations
The agreement should state, item by item, which of the expenses related to the property — property tax, environmental cleaning tax, building/site service charges, gas-electricity-water subscription fees, and the like — will be borne by the tenant and which by the landlord. This prevents later disputes over “who pays this.” Since following up on service charges and shared expenses can be especially difficult from abroad, it is helpful to clearly assign these obligations to the tenant in the agreement and, where possible, stay in contact with a building/site management that provides regular updates.
10. Security Deposit
A security deposit is the sum a landlord takes from the tenant at the start of a lease to secure against potential losses. In practice, a deposit equal to one or two months’ rent is often taken at the start of the lease. Under Article 342 of the TBK, the security deposit taken from a tenant in residential and commercial leases may not exceed three months’ rent, and this amount must be placed in a special time or demand deposit account at a bank, structured so that it cannot be withdrawn without the consent of both the tenant and the landlord. The agreement should clearly state the deposit amount, the account in which it will be held, and whether it will be refunded based on the rent at the start of the lease or the rent as of the date the lease ends. This prevents disputes over the refund of the deposit both at and after the eviction stage. For more detail, see our article on Security Deposit Disputes.
Conclusion
The lease agreement is the foundational document that shapes the entire course of a tenancy, and even a small oversight here can turn into a serious disadvantage years later, at the rent valuation or eviction stage. For owners living in Germany who manage their property in Turkey remotely in particular, having the agreement drafted with the support of a lawyer, taking all of the elements listed above into account, prevents most disputes that could otherwise arise later. A standard, pre-printed lease bought at a stationery shop, or one drafted by someone without expertise in rental law, can leave you facing years of litigation should a dispute arise.
If you would like support drafting your lease agreement, reviewing an existing one, or handling an existing dispute, feel free to contact us.
