A Rent Determination Action and a Rent Adjustment Action Are Not the Same
Rent Determination Action
A rent determination action seeks to have the court determine the rent to be applied in the new rental period in leases of residences and roofed commercial premises. In the first five-year period, agreements on increases are valid provided they do not exceed the rate of change in the twelve-month average of the consumer price index (CPI) in the previous lease year. In contracts longer than five years or renewed after five years, the judge assesses together the change in the index, the condition of the leased property, comparable rents and fairness.
The time when the action can be filed and the rental period from which the rent to be determined will apply are not the same issue. The start of the new period, the increase provision in the contract and a written notice given at least thirty days in advance must be examined with respect to the period from which the decision will take effect.
Rent Adjustment Action
An adjustment action is based on the claim that, after the contract was made, an extraordinary circumstance, unforeseen or not expected to be foreseen and not attributable to the parties, has altered the balance of the contract to the detriment of the debtor to an extent contrary to the rule of good faith. Long-term commercial leases, relationships made in foreign currency, an effect on the operating license, or extraordinary economic and factual changes are assessed on the basis of the file as a whole.
Not every economic change is a ground for adjustment. The duration of the contract, whether the risk was assumed under the contract, whether performance has been rendered, and elements such as a reservation of rights (ihtirazi kayıt) are examined separately.
What Do the Five-Year and Thirty-Day Rules Mean?
Five years is not a waiting period for every rent determination claim. Article 344/2 TBK applies where there is no agreement in the first five years; Article 344/3, which involves an assessment of comparable rents and fairness, applies to relationships longer than five years or renewed after five years.
Rent applicable from the new period
Under Article 345 TBK, the action can be filed at any time. For the decision to take effect from the start of the new period, as a rule the action must be filed at least thirty days before the period, or the increase must be notified in writing within that time and the action filed by the end of the new period. Where the contract contains an increase provision for the new period, the rent determined in an action filed by the end of the new period may also apply from the start of the period. The mediation and notice calendar must be built together.
The 25 percent cap and the current increase
The last application period of the temporary 25 percent cap on residential rents covers periods renewed between July 2, 2023 and July 1, 2024. This historical cap does not carry over to later periods. Under Article 344 TBK, the twelve-month average change in the CPI appropriate to the renewal month, the contract provision and the five-year distinction are examined; no fixed current increase rate is used.
Comparable rent research
A listing price is not the same as an actual rent. Comparable contracts are assessed with differences in location, area, age, use, fittings and period. An expert examination and a fairness assessment do not mean that the rent requested by the landlord will be accepted as it stands.
How We Work on This Topic
We review the contract and renewal date, the increase provision, the payment history and comparable rent records. We separate the conditions of determination from those of adjustment, and we plan the claim period, the evidence and the expert process.