Rent Determination Actions: Current Cassation Line & Practitioner Playbook

Türeli & Ceylan Law Firm – Real Estate & Tenancy Litigation

1) Introduction

Under TCO Art. 344, rent determination actions align the rent with current market conditions, typically at the five-year mark. Recent Court of Cassation jurisprudence has sharpened three pillars: equity deductions for long-term tenants, no amendment/“reservation” in claims, and the 30-day notice rule.

2) Long-Term Tenants & Equity Deduction

• 3rd Civil Chamber (23.06.2020): For long-standing occupancies, apply an equitable deduction (~5–20%) over the free-market rent.
• Grand Chamber (05.10.2021): Do not rely mechanically on expert figures; start from the rent the property could command vacant under free market conditions, then apply a reasoned equity cut, expressly justified in the judgment.

Practice tip: The rate is not automatic. Tenancy length, property condition/location, parties’ conduct, and market volatility should guide the percentage.

3) Precision of Claim: No Amendment; No “Reservation”

• No amendment (ıslah): You cannot expand the claim after filing based on later expert/benchmark data.
• No reservation of “rights for the excess”: Ineffective in these cases. The action must state one clear amount (or a determinable figure tied to a method) from the outset.

4) Five-Year Cycle & 30-Day Notice

• TCO Art. 344: A general rent re-fixing action lies only after five full years, and at each five-year interval.
• To bind the imminent term, serve written notice or file suit ≥30 days before the new term starts; otherwise, the new rent applies from the following term.

5) Practical Impact of the Case Law

• Reasoned equity: Courts expect objective anchors for any equity deduction.
• Drafting discipline: With amendments barred, the initial petition must be meticulous and data-backed.
• Admissibility risk: Missing the five-year/30-day thresholds can sink the case on procedural grounds.

6) Strategic Recommendations for Türeli & Ceylan

1. Crystallize the figure: Plead “the market rent for the premises if vacant under free-market conditions, to be applied at … TRY.”
2. Build comparables: Curate a same-neighborhood set with m², age, use type, and actual concluded rents, not only listings.
3. Equity roadmap: If claiming/contesting an equity cut, justify the % band via tenancy length, condition, and market metrics.
4. Calendar control: Serve ≥30-day notices and have the case file ready concurrently.
5. Cite leading rulings: Quote decision dates and holding summaries to strengthen judicial persuasion and SEO.

Bottom line: The modern line favors reasoned equity, claim clarity, and timeline compliance. Our team pairs market data with rigorous pleadings and timely notices to maximize outcomes in rent adjustment litigation.