When renting a residential or commercial property, the landlord and tenant must enter into a written agreement. The signed contract provides legal protection for both parties' rights. It also helps prevent disputes that may arise later.
What is a rental agreement?
A rental agreement is a document in which the property owner allows a tenant to use a real estate property, and the tenant agrees to pay compensation for this use. In everyday language, it is also called a "rental contract."
Contract duration and extension rules
The duration is determined by mutual agreement of the parties. In practice, while most agreements are made for one year, this period can be extended. According to the Turkish Code of Obligations, if the tenant does not terminate the contract when the term expires, the contract continues for another year under the same terms. This extension can last for up to 10 years. In cases exceeding this period, the landlord can terminate the contract each year by giving notice.
How to fill out a rental agreement?
A rental contract consists of three sections:
- Basic information: The type and address of the property, contact information of the property owner and tenant, rental start and end dates, and rental amount are included. This section must be completed in full.
- Fixtures: Items handed over to the tenant, such as boilers, electricity and water meters, are listed. Maintenance fee information and storage and mailbox keys are also specified in this section.
- General conditions: All other matters are written clause by clause. Topics such as renovations to be made in the property and the bank account where rent will be deposited can be regulated here.
The contract should be prepared in two copies; one should remain with the tenant and the other with the property owner.
Renewal and rent increase
It is not necessary to sign a new contract when the term expires. If there are no issues between the parties, the contract automatically extends for another year. If changes are to be made to the rent amount or any other terms, these must be determined in writing and by mutual consent. It is also important that increase rates remain within legal limits; otherwise, the increase can be objected to.
Is notary approval required?
Notary approval is not mandatory; the parties can make the contract between themselves. However, a contract drawn up in the presence of a notary has the status of an official document, protects the parties in case of disputes, and strengthens the legal basis. The notary fee is determined based on the content of the contract, its length, and notary rates.
Indefinite-term rental agreement
An indefinite-term agreement has no specific end date. Therefore, it is not determined in advance when the tenant will move out or when the landlord will terminate the contract. Both parties must comply with the notice periods for termination under the law. For example, in residential and covered workplace rentals, the party wishing to terminate the contract must give at least three months' notice.
