Turkish Court of Cassation issues precedent on rent determination

The 3rd Civil Chamber of the Turkish Court of Cassation has issued a precedent-setting decision regarding rent determination lawsuits. The ruling clarifies that the five-year requirement for requesting a rent adjustment based on market rates may not necessarily be reset by the signing of a new lease agreement.

The case originated from a commercial property in Istanbul where a lease began in 2005. Although a new agreement was signed in 2018, the landlord sought to increase the rent from 22,000 TL to 39,000 TL in 2021, arguing the current rate was significantly below market value. Lower courts had previously rejected the claim, stating that five years had not passed since the 2018 contract.

However, the Court of Cassation overturned these decisions. The high court ruled that the date of the most recent contract is not the sole determining factor. Instead, the court must evaluate the original commencement of the rental relationship to determine if the current rent has fallen significantly below regional market averages, ensuring fairness under the principles of equity and justice.