Rent increases are the single most common source of dispute between landlords and tenants — yet the rule is clear and set out in the Turkish Code of Obligations. This article works through the calculation.
The basic rule: the twelve-month average CPI
For residential tenancies the annual increase may not exceed the rate of change in the Consumer Price Index (CPI) based on twelve-month averages. This is not "last month's inflation"; it is the average of the last 12 months compared to the average of the 12 months before that.
Even if the contract states a higher figure, this ceiling cannot be exceeded. If a lower rate was agreed, that lower rate applies — the law sets a ceiling, not a floor.
Which month's data applies?
You use the CPI figure for the month before the tenancy renews. If the contract renews each 1 September, you use the twelve-month average announced in August.
Verify the figure on TurkStat's official page — the "monthly inflation" and "annual inflation" numbers quoted in the news are different figures and lead to incorrect calculations.
Worked example
Say the current rent is 25,000 TRY and the twelve-month average CPI change in the renewal month is 42%:
- Increase: 25,000 × 0.42 = 10,500 TRY
- New rent: 25,000 + 10,500 = 35,500 TRY
Shortcut: 25,000 × 1.42 = 35,500 TRY.
The five-year rule
Once a tenancy has run for five years, the position changes. At the end of the fifth year, if the parties cannot agree, the rent may be reset by a judge on equitable grounds, taking into account the CPI rate, the condition of the property and comparable rents. This is the mechanism that allows long-standing rents far below market to be corrected.
Frequently asked
Can a landlord raise the rent mid-term?
No. An increase can only take effect on the renewal date. A unilateral mid-year increase is not valid.
What if a tenant realises they have overpaid?
Anything above the legal ceiling counts as an overpayment and can be reclaimed. This is why payments should go through a bank with a clear reference.
Does the same rule apply to commercial leases?
Commercial leases give the parties more freedom; the increase method agreed in the contract applies first. Even so, the relevant statutory limits can still come into play.
If no increase is applied, is the right lost?
Skipping an increase for one year does not create a right to claim the accumulated increase later. Each period stands on its own.
Practical advice
- State the renewal date and the increase method explicitly in the contract.
- Give notice of the increase in writing, a reasonable time before the renewal date.
- Always pay rent by bank transfer with a "rent for the month of …" reference.
- Keep the deposit, service charge and inventory list as an annex to the contract.
Rates change monthly; confirm the figure at TurkStat before calculating.
