A rent determination lawsuit is a type of lawsuit filed by the tenant or lessor. This case is used to request redetermination of the rental price. Here is some important information about the rent determination case:
What is Rent Determination?
A rent determination lawsuit is filed in cases where a rent increase or decrease is requested.
Although a rent increase is usually requested, this lawsuit can also be filed by the tenant when the legal limits of the rent are exceeded.
What are the Case Conditions?
- There must be a valid lease agreement between the parties. Even if the contract is not written, it may be made verbally.
- There must be legal benefit. In other words, for a lawsuit to be filed, there must be a disagreement between the parties.
How is the New Rental Price Determined?
- If the lease agreement is shorter than 5 years and the parties have not made an agreement on this issue, the rent to be determined in the new period is determined by the judge on an equitable basis, taking into account the condition of the leased property, provided that it does not exceed the change rate of the CPI (Consumer Price Index) of the previous lease year compared to the twelve-month averages.
- If the lease agreement is for more than 5 years, regardless of whether there is any agreement between the parties; The rental fee will be determined by taking into account the condition of the leased property, comparable rental prices and market rates.
When to File a Rent Determination Case?
A rent determination lawsuit can be filed at any time without any time limit in accordance with Article 345 of the Turkish Code of Obligations. However, when the case is filed is important in terms of when the rent determined by the court will come into force. In order for the new price to be applied, a notice must be sent or a rent determination lawsuit must be filed at least 30 days before the rental period. This applies when renewing the lease, when there is a dispute between the parties and the new rental price needs to be determined. A rent determination lawsuit can be filed for both residential and workplace rents.
Warning Condition for Rent Determination Case
There is no notice requirement for a rent determination case. However, sending a notice at least 30 days before the new rental period will result in the rental fee being valid from the beginning of the new period. In other words, a rent determination lawsuit can be filed without sending a notice. Warning letter, article 345/2 of the Turkish Code of Obligations. If it is done in accordance with the article, it provides a significant advantage for the lessor. For this reason, it is important for the party who wants to file a rent determination lawsuit to consider whether to send a notice depending on the need and situation.
Mediation Requirement in Rent Determination Case
There is a mediation requirement in rent determination cases. With Article 37 of Law No. 7445 published in the Official Gazette on April 5, 2023, mandatory mediation has been introduced in rent determination and eviction cases arising from rental relations as of September 1, 2023.
How Long Does a Rent Determination Case Take?
The duration of a rent determination case may vary depending on the outcome of the mediation, the complexity of the case, and the court’s workload. However, in general, a rent determination case takes an average of 1.5 years. In some cases, processes can take from 6 months to 1 year from application to decision. These times are a general estimate of how long each stage of the case will take and may vary for each individual case. Although it is difficult to give an exact time period, these estimates can give an idea about the litigation process.
