Which rate is the legal ceiling?
Under article 344 of the Turkish Code of Obligations, the increase at renewal for residential and roofed commercial tenancies cannot exceed the change in the consumer price index measured on a twelve-month average basis for the preceding rental year. This is not the headline annual inflation figure — TurkStat publishes the twelve-month average separately each month, and the two usually differ.
Use the figure for the month your contract renews: a January renewal takes the rate published in December, a July renewal the rate published in June. The value pre-filled above reflects the most recently published period; replace it with your own month's rate.
A ceiling, not a target
The statutory rate is a maximum. Landlord and tenant are free to agree less, and with a good tenant that is often the cheaper outcome — one month of vacancy usually costs more than a year of foregone increase. An increase above the ceiling can be challenged later even if the tenant initially accepted it.
When the rent has fallen far below market
On long tenancies, CPI-capped increases can leave the rent well under market. For tenancies that have run five years or more, article 344/3 allows the rent to be re-set to market level by a court determination (kira tespit davası). It is a separate legal process and needs evidence of comparable rents — something we assemble as part of a valuation for owners we manage property for.
Practical points when you apply the increase
- Notify the tenant in writing, in good time before the renewal date, and keep proof of the notice.
- Record the new rent in writing, either in a renewed contract or in the retained notice.
- Collect rent through a bank — it is both your evidence of payment and what the tax office expects.
- Confirm at the same time who carries the building fee, insurance and fixtures.
If you live outside Turkey, applying the increase correctly and on time each year is one of the things our property management service exists to handle.