Are Shopping Mall Tenants Obliged to Pay Service Charges and Common Expenses?

Türeli & Ceylan Attorney-at-Law – Commercial Lease & Property Law Advisory

Tenants operating stores or commercial units within shopping malls (AVMs) are often required to make payments beyond rent—such as monthly service charges and shared operating costs. However, the legality, scope, and enforceability of these charges depend on both statutory regulations and the specific provisions of the lease agreement.

This article examines the legal basis of service charges in shopping malls, the obligations of tenants, and available legal remedies in case of disputes.

What Are Service Charges and Common Expenses?

Service charges and common expenses refer to payments demanded from tenants for the operation, maintenance, and management of shared areas within a shopping mall, such as:

• Corridors and parking areas
• Security and cleaning services
• Ventilation, lighting, and energy for common areas
• Concierge and information services
• General marketing and advertising expenses

Legal Basis for Service Charges

To be legally enforceable, the obligation to pay service charges must be explicitly included in the lease agreement.

Turkish Code of Obligations (TCO):

• Article 301:
  The landlord is obliged to deliver the leased premises in a condition suitable for the agreed use and to maintain this condition throughout the lease term.
• Article 302:
  Unless otherwise agreed, ancillary expenses related to the use of the premises are borne by the landlord.

What does this mean?
If the lease does not clearly specify obligations such as service fees, management fees, or marketing charges, the tenant cannot be forced to pay them.

Importance of Lease Agreement Provisions

Lease agreements in shopping malls tend to be detailed and may include several cost items under the heading of “service charges,” such as:

• Shared area maintenance and utilities
• Security and janitorial costs
• Shared electricity, ventilation
• Marketing and promotional expenses
• Fees charged by the mall management company

These items must be transparently itemized and supported by invoices or detailed account statements.

Are Increases in Service Charges Legally Valid?

For service charge increases to be enforceable:

• The lease agreement must specify an index or formula (e.g., CPI/TÜFE).
• Arbitrary increases cannot be applied unilaterally.
• Mall management must provide annual account statements detailing expenses.

Under Articles 26–27 of the TCO, any provisions that are not contractually agreed upon or are contrary to good faith principles may be deemed invalid.

Can a Tenant Object to Service Charges?

Yes. A tenant may legally challenge service charge demands on grounds such as:

• Charges not stated in the lease agreement
• Lack of transparency or justification
• Excessive or disproportionate increases
• Costs unrelated to the use of the leased premises

The tenant may refuse payment, issue a formal notice, and if necessary, initiate a declaratory action before the competent court.

What Happens If a Tenant Refuses to Pay?

• If the obligation is clearly set forth in the lease and the tenant fails to pay, the tenant may fall into default.
• In such cases, the landlord may seek termination of the lease or initiate enforcement proceedings.
• However, these rights only arise if the payment obligation is contractually valid and properly documented.

Why Should You Seek Legal Assistance?

Disputes over service charges and common expenses are among the most common conflicts between mall management and tenants. These disputes can disrupt commercial operations and result in legal and financial liabilities.

Especially when a tenant is forced to pay unjustified charges, they may have the right to reclaim overpaid amountsthrough litigation.

At Türeli & Ceylan Attorney-at-Law, we provide:

• Legal review of your mall lease agreements
• Assessment of your service charge and cost obligations
• Legal action against unlawful or excessive charges
• Representation in management plan disputes, declaratory actions, and enforcement proceedings

Conclusion

Tenants’ obligation to pay service charges or common expenses in shopping malls arises only from explicit and valid contractual provisions.
Not every charge is legally enforceable.
With the right legal guidance, you can protect your business from unjustified financial burdens.

If you are facing issues related to service charges or shared costs, Türeli & Ceylan Attorney-at-Law is here to offer tailored legal solutions.
Stand up for your rights—don’t pay more than you are legally required to.