Rent Determination Lawsuit

What Is a Rent Determination Lawsuit?

A rent determination lawsuit is an action filed with the purpose of having the existing rental fee re-established by the court in accordance with prevailing market conditions and comparable values. Such proceedings are particularly relevant in long-term lease agreements, where inflation and economic fluctuations may cause the rental amount to lose its actual value.

The Legal Nature and Conditions of a Rent Determination Lawsuit

Pursuant to the Turkish Code of Obligations, a rent determination lawsuit becomes applicable in lease agreements concerning residential premises and roofed workplaces once the contractual term reaches five years. Accordingly, if the lease agreement between the landlord and the tenant has exceeded five years, either party may petition the court for a re-determination of the rental fee.

• In lease agreements of less than five years, rental increases may be applied solely in accordance with the Consumer Price Index (CPI).

• In lease agreements exceeding five years, the court determines a fair rental fee by taking into account comparable rental values, the condition of the immovable property, and the principle of equity.

When to Initiate a Rent Determination Action

One of the most significant aspects of a rent determination lawsuit is timing. The action must be filed at least thirty days prior to the commencement of the new rental period, or the tenant must be given written notice within this timeframe. Otherwise, the rent amount to be determined by the court will take effect only as of the subsequent rental period.

An exception to this rule is set forth under Article 345/3 of the Turkish Code of Obligations, which provides that where the lease agreement contains a clause stipulating an increase in the rental fee for the new term, a lawsuit filed until the end of that rental period shall render the rent determined by the court effective as of the beginning of that new term.

Mediation in Rent Determination Lawsuits

In rent determination lawsuits, mandatory mediation is a prerequisite before filing a case. If the parties fail to reach an agreement during the mediation stage, the final report prepared by the mediator enables the initiation of court proceedings. This process is designed both to expedite the resolution and to encourage settlement without resorting to litigation.

Rent determination lawsuits involve technical details that may lead to significant loss of rights for both tenants and landlords. Proper management of the process, preparation of the necessary documentation, and safeguarding of rights require professional legal assistance.

For more detailed information on rent determination lawsuits or to obtain legal support, you may contact us directly.