Written agreements between the landlord (the lessor) and the tenant (the lessee) during the rental (lease) of an immovable property are called rental agreements. Rental agreements regulated in accordance with Article 299 of the Code of Obligations are of great importance in order for the landlord and the tenant not to be harmed, so that the problems that may arise can be easily resolved. So, how to fill out the rental agreement?
How is rental agreement prepared?
When making a rental agreement, you can use ready-made contracts that you get from the stationery store or find on the internet. However, if there are specific points that you want to add, a special contract can be prepared that will be approved by the owner and the tenant.
There are basically three parts in the contract:
- The first part should include details (like full names, contact info, addresses) of the landlord and the tenant. In addition it shall include details (address, type, existing furniture, damages if any) about the real estate to be rented, the start date, the period and the rental price (both monthly and annually) in addition to any insurance (deposit) requested.
- The second part should include general rules and regulations specifying the duties and the rights of each of the owner and the tenant.
- The last part should include special rules specifying dates and methods of payment, rate of increase, payment of dues, and others details.
When and how is the payment done?
The parties can freely determine the payment method of the rent. The rent can be paid every month, every 3 months, every 6 months or it can be paid for a year in advance. When the rent will be paid must be clearly stated in the contract. In case it is paid monthly, it shall be written during which days of each month the payment is to be made. If payment is done through bank transfer, it would be appropriate to write the bank information to which the rent will be deposited in the contract.
Who is responsible of other taxes arising from the use of the rented property?
The contract should specify who will pay the withholding tax and other taxes (ex. Environmental Cleaning Tax) arising from the use of the rented property. If the taxes are to be paid by the tenant, the receipts must be delivered to the landlord immediately after payment as he is responsible for the payment of these taxes. While determining the price, it should be clearly written whether it is the net or gross amount. If not specified, it would be considered as gross by the law. Therefore, it should be clearly stated if the tenant has to pay any other taxes.
What does insurance (deposit) mean?
When renting immovable properties such as residences or workplaces, the money that the property owner demands from the tenants and that they secure themselves in case of damage to the property is called insurance (deposit). The insurance (deposit) is delivered by the tenant to the landlord at the beginning of the agreement. It often consists of money or valuable papers and constitutes a guarantee for the damages caused by the tenant to the landlord when the agreement is terminated. In other words, if the tenant damages the house or workplace, the landlord can have the damaged parts of the house repaired thanks to the deposit after the contract ends. In case no damage was caused, the landlord pays the deposit back to the tenant when terminating the contract.
Who signs the rental agreement?
The authority to sign the rental agreement rests with the landlord and the tenant. The owner and the tenant can give the authority to someone else to sign on their behalf by power of attorney. However, those who are under the age of 18 cannot be a party to the rental agreement.
Is it obligatory to sign the rental contract with a notary public?
There is no legal requirement for the form of the rental agreement. At the same time, there is no obligation to sign the rental agreement with a notary public. However, the parties who want to avoid loss of rights and increase the power of proof of the contract can sign the contract in the presence of a notary public.
What is the duration of the rental agreement?
There is no duration limit on this subject in the law. In residential properties, rentals are usually made annually. However, in workplaces, it is usually made for a period of 3, 5 or 10 years.
Are non-renewed contracts considered valid?
Rental agreements prepared by the landlord and the tenant must be renewed 15 days before the end of duration. If the tenant declares that he wants to continue the tenancy at least 15 days before the end of the period, he has the right to continue the rental agreement for 1 more year. This could take up to 10 years. The landlord only has the right to terminate the contract at the end of the 10-year extension period.
Non-renewable rental agreements are valid for 1 more year with the same conditions in case the tenant did not request terminating it.
How is rental increase determined?
According to the New Code of Obligations, the parties can determine the amount of increase not to exceed the consumer price index (CPI, twelve-month average) announced by TUIK. The law has limited the amount of increase. After five years, the parties may apply to the court and request that the new rental price be determined through expert examination.
NOTE: Make sure that the contract mentions that the increase will not exceed the CPI index (consumer price index) and not the PPI index (producer price index)
Can the house be sold when there is a tenant in the house?
The rental agreement between the parties in residential rentals does not limit the owner’s right of disposal. The owner can sell the house even when there is a tenant.
To whom can the tenant complain about the landlord?
According to the Consumer Rights Law, an application can be made to the Consumer Arbitration Committee for the settlement of disputes between the landlord and the tenant to protect the rights of the tenants who are legally qualified as consumers.
How is the rental agreement terminated?
Under normal conditions, if 10 years have not passed since the rental of the property, the termination of the contract is carried out only by the tenant. The tenant must give written notice to the property owner at least 15 days before the contract expires. Otherwise, the contract is automatically extended for 1 more year, regardless of the duration of the contract.
In order for the landlord to terminate the contract, the term of the contract must be 10 years. In addition, some exceptional circumstances allow the landlord to terminate the rental agreement.
Most common reasons for terminating the contract before 10 years:
- The tenant’s misuse of the property:
The tenant is obliged to use the rented property with care in accordance with the contract and to show the necessary respect to the neighbors. In case the tenant causes any discomfort to the neighbors or damage to the rented property, the contract can be terminated by the owner. In order for the owner to terminate the contract, he may give notice of termination within a specified period. It is also possible to terminate the contract immediately, without the need to give time, according to the conditions of damage caused. - The tenant’s delay in payment:
If the tenant does not pay the rent on time, the owner may give him time with a written notification and inform him that he will pay the rent within the specified period, otherwise he will terminate the contract. If the tenant was late in payment 2 times in 1 year, the owner can request that the contract is terminated at the end of its duration. Note that he should have sent the tenant two written notices during that year. - The rented property needs renovation or will be used by the owner or one of his first-degree relatives:
For evacuation due to renovation, the house must be uninhabitable without renovation. If the landlord requests the evacuation by stating that he or a first-degree relative needs the rented house, he is not allowed to to rent the house to someone else for 3 years.
Can the owner terminate the contract without showing a justified reason?
- The first of these is the eviction of a tenant by filing a lawsuit. This case is called the eviction case. As stated in the law, this lawsuit must be filed within one month, starting from the date the tenant declared to vacate the immovable in the eviction undertaking.
- Another possibility is to apply for enforcement. The tenant is evicted based on the eviction letter through the enforcement office.
What are the terms and conditions of eviction letter?
- The eviction letter is subject to written form:
In other words, the declaration that the rented property will be evacuated on the specified date must be given in written form. This condition is clearly stated in the article of the law. It is considered sufficient to sign an evacuation contract on a simple piece of paper. In addition, there are no conditions such as notarization. However, if both parties wish, they can further tighten this writing requirement. So if they want, this commitment can be made at the notary public. Making this contract at a notary public provides great convenience in practice. The tenant’s opportunity to object to an eviction commitment made in this way is considerably reduced and there is no need for the enforcement office or the court to carry out extensive research. - The evacuation letter may be given by the tenant himself or by his representative specifically authorized in this regard:
The eviction letter is of great importance as it takes away an important right of the tenant and gives the owner a right that is not normally recognized in the law. For this reason, family members other than the tenant, who is the addressee of the rental agreement, cannot conclude this agreement. Only the tenant can sign this contract. However, a person appointed by the tenant can sign this contract on behalf of the tenant. Here, too, the general power of attorney is insufficient. The person must have been specially appointed as a proxy to sign the eviction letter. - The date of evacuation of the immovable must be specified in the evacuation undertaking:
What is meant by a specific date here is a date written in the form of day – month – year. However, dates that are not in the form of day – month – year, but which can be understood from the expression, are also considered valid. For example, a statement such as “I undertake to evacuate on the 3rd day of the Eid al-Adha in 2022” is considered valid. - The tenant must have signed the eviction letter with his free will:
A contract of release is, after all, a contract. For this reason, if it is taken by mistake, cheating or intimidation, it will be considered invalid in accordance with the general provisions of the Turkish Code of Obligations. The person has to cancel this contract within 1 year. Otherwise, the contract remains valid. - If the contract of evacuation is given during or before the signing of the lease agreement, it will be invalid:
The most important condition for the validity of the eviction letter is when the letter was prepared. According to the law, the evacuation letter can be obtained after the rented property is delivered to the tenant. In practice, this period can be determined as 15 days or 1 month. The purpose of this rule is to protect the tenant who is in a difficult situation. It is to prevent the owner from compelling the immovable to be rented only in return for a commitment. Because the law only grants the tenant the right to terminate the fixed-term lease at the end of the period. In this context, the eviction letter can be obtained after the conclusion of the rental agreement and the delivery of the immovable. There is no obligation to do this within a certain time. A commitment to evict can be obtained within the period specified in the rental agreement, or it can be obtained in periods when the contract period is extended. In practice, it is seen that the owners try to ensure validity by placing a later date on the eviction contract made together with the rental agreement. In this case, the will of the person will be crippled.