Rental Law: Eviction and Rent-Determination Actions

A rental relationship most of the time proceeds without any problem, but when the need of one of the parties changes or the rent falls behind market conditions, legal remedies come into play. For the landlord, the most frequently wondered-about subject is in which cases eviction is possible, while for the tenant it is which limit the rent increase may not exceed. Although these two questions appear independent of one another, they are in fact different faces of the same lease agreement and both are tied to specific procedural rules.

A property owner who wishes to bring an eviction action must first clarify on which ground they will rely; whether they will act on the ground of need, on the ground of two justified notices, or on the basis of an undertaking to vacate determines the procedure and the periods to be followed. On the tenant's side, the rent-determination action is a path resorted to in order to bring the rent to its real market value, and it generally comes onto the agenda in situations where the annual increase limit cannot be applied. Below, the operation of these processes and the obligations of the parties are addressed point by point.

On Which Grounds May the Landlord Bring an Eviction Action?

The cases in which the landlord may apply to the court with a request for eviction are regulated in a limited number in the law; the most widespread of these cases is the housing or workplace need of the landlord themselves, their spouse, or their descendants or ascendants. The claim of need is required to be genuine and sincere; a claim of need put forward merely for the purpose of getting the tenant out may produce a result in favour of the tenant if the property is subsequently rented to someone else within a short time. For this reason, in actions brought on the ground of need, setting out the need in a concrete manner generally carries importance.

The second widespread ground is that two justified notices have been served because the tenant failed to pay the rent in one rental period. The tenant's being in default of payment in different months within the same rental year and two duly served notices having been sent for this reason grant the landlord the right to request eviction at the end of the period. The third ground is that the tenant undertook in writing, at the time the agreement was concluded, to vacate the property on a specific date, that is, an undertaking to vacate. These three paths are each subject to different rules of proof and periods within themselves.

• Eviction on the ground of need. The landlord sets out that the housing/workplace need for themselves, their spouse or their relatives is genuine.
• Two justified notices. Two duly served payment notices must have been sent within the same rental period.
• Undertaking to vacate. It relies on the tenant's written undertaking to vacate the property on a specific date.
• Reconstruction or substantial repair. The need for a reconstruction or repair of the property that will render it unusable may also be a ground for eviction.

What Should Be Paid Attention to in an Eviction Action on the Ground of Need?

In an eviction action brought on the ground of need, the court assesses whether the need is genuine together with the evidence in the file. Elements such as the landlord not having another dwelling, the current living conditions of the person in need and since when the need has existed play a role in this assessment. The claim of need being put forward merely verbally is not considered sufficient; the submission of concrete information and documents to the file is generally expected.

After the action is won and the property is vacated, the landlord's renting the same property to someone else for a purpose unrelated to the need within a reasonable period may give rise to a claim for compensation by the former tenant. For this reason, the genuineness of the claim of need continues to carry importance not only at the litigation stage but also after the action. The landlord's need resting on a life plan that shows it to be long-term and permanent contributes to a healthier progress of the process.

How Does the Condition of Two Justified Notices Arise?

In order to be able to request eviction on the ground of two justified notices, the tenant must have failed to pay the rent on time within the same rental year and two separate notices must have been duly sent to them for this reason. The notices having been sent through a notary or by the other means foreseen in the law is important in terms of the existence of these notices being able to be proved subsequently. A notice made merely in the form of a verbal warning generally does not satisfy this condition.

Once two justified notices accumulate, the landlord may exercise the right to bring an eviction action within a specific period from the end of the rental period. Since the right may lapse if this period is missed, tracking the dates of the notices and the period for filing the action requires attention. The tenant's having subsequently made payment despite the notices generally does not remove the arising of the two-justified-notices condition, because what is sought here is that the late payment has been repeated.

On Which Conditions Does an Action Based on an Undertaking to Vacate Depend?

An undertaking to vacate is a document in which the tenant declares in writing that they will vacate the property on a specific date, and it is generally drawn up separately from the lease agreement, on a later date. For the undertaking to be deemed valid, it is required to have been signed by the tenant of their own free will and for the vacating date to have been clearly stated. If the property is not vacated on the undertaking date, the landlord may request eviction through enforcement proceedings or by bringing an action within a specific period from the undertaking date.

In practice, there are assessments to the effect that if the undertaking is signed at the same time as the agreement it may be deemed invalid, because in this situation it may be argued that the undertaking was given not of the tenant's free will but as a condition for establishing the rental relationship. For this reason, the date of the undertaking and the circumstances of its signing are among the elements that directly affect whether the eviction request will be accepted.

How Is the Statutory Limit Applied to Rent Increases?

In residential and roofed-workplace rents, the annual rent-increase rate may not exceed the rate of change according to the twelve-month averages in the consumer price index of the previous rental year. Even if the parties have agreed on an increase rate above this limit in the agreement, in practice the ceiling foreseen in the law is taken as the basis and the part exceeding it is deemed invalid. This rule aims to protect the tenant against increases that are high to an unforeseeable extent.

The rent increase is applied on the anniversary of the lease agreement, unless a different date has been agreed in the agreement. If the landlord requests an increase above this limit, the tenant becomes obliged to pay not the amount written in the agreement but the amount calculated according to the statutory ceiling. In the event of a disagreement, how much the rent should be may be determined by the court through a rent-determination action.

• Index limit. The increase rate may not exceed the rate of change according to the relevant twelve-month averages.
• Invalidity of the rate in the agreement. A higher rate agreed by the parties is not applied as regards the part exceeding the ceiling.
• Date of increase. Unless otherwise agreed, the anniversary of the agreement is taken as the basis.
• After the five-year period. After a certain period has passed, the rent may, if the parties cannot agree, be redetermined by the court according to the current market value.

When Is a Rent-Determination Action Brought?

A rent-determination action is an action brought for the purpose of bringing the rent into line with current market conditions, and it generally comes onto the agenda when agreement cannot be reached between the parties on the rent for the new period. Especially in rental relationships that have continued at the same amount for a certain period, the landlord may request that the amount be redetermined according to the current market value of the property. This action does not carry an eviction purpose; the aim is to reach a fair amount during the continuation of the agreement.

In a rent-determination action, the court determines a new amount through an expert examination, taking into account the location and nature of the property, the comparable rents in the vicinity and the general economic conditions. This determined amount becomes effective not from the date of the action but from the date stated in the judgment. The amount determined as a result of a rent-determination action also carries the quality of a base taken as the basis for the increase for the following years.

What Are the Basic Obligations of the Tenant and the Landlord?

The most basic obligation of the tenant is to pay the agreed rent on time and to use the property with care, in accordance with the agreement. In addition, the tenant is obliged to notify the landlord in a timely manner of any defects or faults occurring in the property that they are required to report, and to undertake the ordinary cleaning and minor maintenance work. Using the property outside the purpose of the agreement or transferring it to someone else without permission may grant the landlord the possibility of termination.

The principal obligation of the landlord, on the other hand, is to deliver the property in a condition suitable for use and to keep it in this condition throughout the rental period. Remedying the substantial defects of the property and intervening in a timely manner in problems that significantly hinder the tenant's use are also within the responsibility of the landlord. The failure of either party to fulfil their obligations may produce results extending as far as termination of the agreement or claims for compensation.

How Is the Deposit Returned When the Lease Agreement Ends?

The deposit taken from the tenant is the security amount of the lease agreement, and when the agreement ends and the property is delivered, it must be returned after deducting any damage caused by the tenant or unpaid debts, if any. For all or part of the deposit to be withheld, a concrete loss in the property arising from the tenant's fault must generally exist and this loss must have been established. Deducting from the deposit on account of ordinary wear and tear is not considered appropriate.

In the event of a disagreement between the parties on the return of the deposit, documents such as a record and photographs showing the condition of the property at the moment of delivery carry value in terms of proof. The tenant's having a record of determination drawn up or photographing the situation when delivering the property helps them to form evidence in their own favour in disputes that may subsequently arise. In the event that the landlord unjustly fails to return the deposit, this amount may be claimed through litigation.

Which Court Has Jurisdiction and Competence in an Eviction Action?

In eviction and rent-determination actions arising from a rental relationship, the court with subject-matter jurisdiction is generally the civil court of peace, regardless of the nature of the lease agreement. The court with territorial competence, on the other hand, is as a rule the court of the place where the property is located; even if the parties have designated a different competence in the agreement, competence agreements that would produce a result to the detriment of the tenant may not be deemed valid in practice. Since bringing the action in the wrong court may prolong the process on account of a decision of lack of competence, the correct determination of this point from the outset prevents a loss of time.

In the statement of claim, the ground of eviction relied upon is expected to be clearly stated and the evidence suitable for this ground to be submitted as an annex to the petition; for example, in a claim of need the documents supporting the need, and in two justified notices the copies of the notices with the service annotation, are added to the file. An action brought with a petition that is incomplete or not suitable for the ground may produce results that are difficult to make good when the possibility of amendment remains limited. For this reason, the joint preparation of the ground to be relied upon and the set of evidence suitable for it before the action is brought is generally recommended.

Why Is It Important for the Lease Agreement to Be in Writing?

A lease agreement may also be established orally, but the existence of a written agreement makes it much easier for the parties to prove their claims in both eviction and rent-determination processes. When the rental commencement date, the monthly amount, the increase condition and the obligations specially agreed by the parties are included in a written agreement, disputes over "what was agreed" that may subsequently arise are largely prevented. In oral rental relationships, on the other hand, bank receipts, correspondence and witness statements may have to meet the burden of proof.

If an undertaking to vacate, special termination conditions or a special procedure regarding the rent increase have been agreed in the agreement, these provisions must not be contrary to the mandatory limits of the law; otherwise, not the provision of the agreement but the statutory regulation is applied. For this reason, for both the tenant and the landlord, looking carefully when the agreement is signed not only at the rent and its duration but also at the clauses regarding the termination and increase conditions reduces disputes that may arise in the future.

How Does the Eviction Process Operate After the Action Is Brought?

After the eviction action is brought, the court examines the evidence according to the ground relied upon; in a claim of need it focuses on the genuineness of the need, in two justified notices on whether the notices were duly served, and in an undertaking to vacate on the validity of the undertaking. During the action the tenant may continue to reside in the property, but if the action becomes final and the tenant does not vacate the property voluntarily, eviction through enforcement proceedings comes onto the agenda.

If the tenant does not vacate the property after the judgment becomes final, the landlord may request eviction through the enforcement office, and at this stage a final period is granted to the tenant to vacate the property. In this process, the landlord's holding the judgment in hand and initiating the enforcement proceedings duly is important in terms of the process progressing without delay. Although the tenant has rights of objection at this stage, if there is a finalised court judgment the likelihood of the objection producing a result is generally limited.

Eviction and rent-determination actions are processes that may follow a different course according to the type of agreement, the conduct of the parties and the documents in the file. Since details such as the genuineness of the claim of need, the due form of the notices or the correct calculation of the rent increase directly affect the outcome, assessing the existing documents and the provisions of the agreement together before entering the process generally sets out a healthier road map. Av. Aydın provides guidance in eviction and rent-determination processes relating to rental law by examining the concrete circumstances of your file. If you would like to meet on this matter in Konak/İzmir, you can reach the line at 0553 595 67 82 on a 24/7 basis.