Lease contract in Turkey: Your comprehensive guide

What is the lease contract in Turkey?

It is an official agreement document signed between two parties that includes both the landlord and the tenant, in which it explains the details of the agreement, including the term, rent value, and method of payment. The contract contains detailed data about the property, its address, and personal information for each of the parties.

What are the terms included in the lease contract in Turkey and ensure its validity?

The lease contract in Turkey must include certain clauses that guarantee the legal integrity of the contract and fulfill the conditions for its validity while preserving the rights of both parties from the owner and the tenant.

The most important of these items are explained as follows:

• The ID information of the owner, tenant, and sponsor, if any

The lease contract in Turkey must include all the personal identification information of the two parties to the contract, from the owner, the tenant, and even the sponsor, if any, and the data includes the personal identification number of each party and his full name as written in the identity, and if the tenant or owner is a foreigner, the special TC number is added with a residence card (Kimlik).

• Rental term and value

One of the important items that the lease contract in Turkey must include is to clarify the lease term agreed upon between the two parties, usually one or two years, subject to renewal.

The lease contract must also include the financial value that will be collected from the tenant to the owner with the method of payment, and clarify the mechanism used for payment, whether it is on a monthly or annual basis or otherwise.

• Residential address information

Clarifying the exact address of the property to be rented, writing its data and its correct geographical location are among the basic conditions for the safety and validity of the lease contract in Turkey.

The tenant must ensure in particular the integrity of the dwelling address and its information, because of the consequent legal and other official transactions that will not be completed if there is a problem with the address and data of the rented dwelling.

The correct address and data of the dwelling are usually inferred through the previous water, electricity, or gas bill of the same dwelling.

• Insurance conditions

The insurance in the lease contract in Turkey is a financial value requested by the owner from the tenant, and it is paid once when writing the contract, as insurance on the house from any damage caused to it by the tenant, and it is usually at the value of one month of the agreed rent, and if the house is in good condition If the tenant did not harm him, the amount will be refunded upon the expiry of the lease contract and the unwillingness to renew it by either party or any party.

One of the conditions for the validity of the lease contract is that the insurance value must be written, in addition to the conditions under which the landlord is entitled to not be obligated to return the insurance amount to the tenant.

In some cases, when renting houses in Turkey, the insurance amount is mortgaged at the real estate broker’s office, with the value of that amount written in the contract and the terms as well. At the end of the contract, the office assesses whether the tenant has breached the terms or not, and accordingly the insurance value is either returned to him or paid to the owner.

• Accrued entitlements

When writing a lease contract in Turkey, it must be clarified that there are no accumulated financial dues on the house or any taxes, whether from the owner of the house or the previous tenant, unless there is a prior agreement between the two parties on the payment mechanism, this is explained in the contract.

• Increase request

The percentage of the increase in the rent value must be specified in the rental contract concluded between the two parties in Turkey, as well as the period after which the rent value will be increased. For the percentage announced by the Turkish Statistical Authority.

• Tenant responsibilities

The responsibilities of the tenant must be clarified within the terms of the lease contract in Turkey based on a prior agreement between the two parties, and accordingly, the expenses incurred by the tenant in the housing, such as revenues and services that benefit the tenant, are determined.

• Signing the lease contract

When signing the lease contract in Turkey, the two parties directly concerned must attend in one council and sign the contract, that is, the real official owner of the dwelling and the beneficiary tenant whose data is fully registered in the contract must sign. Agents can be signed by both parties, but there is an official legal power of attorney to prove this.

Documenting the lease contract in Turkey

It is preferable to document the lease contract at the notary public (notary) in Turkey, which gives it a more legal status, and the notation is done through the accredited notary offices spread in Turkey.

• Lease certification fees in Turkey

The lease contract certification fees in Turkey range from 100 to 150 TL, according to the latest pricing for the year 2021, and the tenant pays the rental contract certification fees at the notary office.

Renewing the lease contract in Turkey

The lease contract in Turkey is automatically renewed if the tenant continues to pay the rent, and the two parties agree without the need for a new lease contract, and the renewal is automatically done with the same terms and conditions written in the lease contract.

In the case that one of the parties does not wish to renew, the other party shall be notified of its intention not to renew at least two months or one month in advance.

Termination of the lease contract in Turkey

The reasons for the termination of the lease contract by one of the parties are concentrated in the following:

• Expiry of the lease duration

At the end of the lease term, the contract is automatically terminated, unless both parties express a desire to continue, provided that the other party is notified of their unwillingness to renew at least one month before the expiry of the contract.

• Termination of the contract due to a defect in the property

The tenant has the right to terminate the lease contract if a clear defect is discovered in the rented property, and the event that the repair of the defect is not accepted by the owner, and the defect can be repaired by the tenant and deducted from the value of the rent owed to the owner.

• Termination of the lease contract due to the tenant’s failure to pay the rent

Where the landlord after notifying the tenant is given 10 days to vacate for residential property, and 30 days for commercial properties.

• Termination of the lease contract due to negligence of the tenant

In the case, that great harm is inflicted and a change like the property is done without the permission of the owner, then the property owner has the right to terminate the lease contract. Also, if the neighbors are disturbed and a commitment to the safety of the building is promised, the tenant is notified of a warning, and then if he is not required to, the contract is terminated by the owner.

• Termination of the contract for urgent and force majeure reasons

Such as the death of the tenant or the declaration of bankruptcy.

Lease contract form in Turkey

It is available at real estate brokerage offices and can be obtained from any place specialized in selling contract forms, official documents, etc. The real estate contract form includes all the items that guarantee the terms of the validity of the contract.

Frequently asked questions about the lease contract in Turkey

• What is the importance of the lease contract in Turkey?

It preserves the rights of both parties from the landlord and the tenant and prevents harm to the interests of the parties to the contract.

• When should the rent of apartments in Turkey be paid exclusively through the bank?

Turkish law forces that the rent of apartments be paid exclusively through bank transfers if the rent value exceeds 500 TL, with an explanation in the notes box and an indication that the amount is rent for the house.

• What are the cases in which the lessor can terminate the lease contract in Turkey?

• In the case that the term of the contract has expired and he/she does not intend to renew it, he must notify the tenant at least a month in advance.
• If the tenant damages the housing.

In the case that the tenant is not obligated to pay the rent premium.

• What is the annual rent increase in Turkey?

It is a percentage added to the agreed rent value if the tenant wishes to continue in the property after a year has passed since the term of the contract, and it is in an agreement between the landlord and the tenant or within the framework of the percentage announced annually by the Turkish Statistical Authority.

• Does the tenant have the right to rent out the rented property or part of it?

The tenant is not entitled to rent the property or part of it except with an agreement with the owner exclusively.

• Does the tenant have the right to carry out works that may change the identity of the property?

The tenant is not entitled to carry out actions that change the identity of the property without prior permission from the owner and informing him of the details of the change that will be made to the property.

• Who pays the costs of regular maintenance of the property?

It is the tenant’s responsibility to pay the normal maintenance costs of the property as he is the direct beneficiary of it.

• Who bears the costs of improvements to the rental property, such as painting, for example?

In this case, the expenses will be incurred according to the agreement between the two parties, the owner and the tenant, but if the reason for the improvements is due to misuse, it is the responsibility of the tenant to bear those expenses.

Edited by Gars Consulting Company

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