Turkey protects the rights of homeowners

Turkey protects landlords' rights: rental mediators are on the lookout for landlords' interests

Owning real estate is a hassle and not always a joy. In recent years, the real estate market in Turkey has been actively developing, attracting more and more foreign investors. Buying housing in this sunny country was perceived as a profitable way of investing capital with the prospect of receiving a stable income from the rental of real estate. However, in practice, many owners faced serious problems that overshadowed the joy of investment. First of all, it concerned situations when it was necessary to sell the housing in which tenants lived. When it came to viewings for potential buyers, some tenants simply refused to let outsiders into the rental property or created all sorts of obstacles. As a result, the sale process was significantly delayed, causing material and moral damage to the owners.

New rules: balancing the interests of owners and tenants

Realizing the growing severity of the problem, the Turkish government decided to make adjustments to the existing legislation. The goal is to make the rental market more civilized and protect the interests of both participants — owners and tenants. Until recently, Turkish laws largely protected the rights of tenants, which often led to abuses on their part to the detriment of owners. There was a need to restore the balance by giving more opportunities for owners to assert their rights in their interactions with tenants.

Mediation service: litigation prevention

One of the key innovations was the creation in September 2023 of a dedicated mediation service to resolve rental disputes. The main objective of this initiative is to minimize the number of conflicts resolved through the court, offering the parties a faster and more efficient way to settle disagreements. Now, when disputes arise, local authorities recommend that mediators are the first place to turn to. These specialists will help the parties to try to find a mutually acceptable compromise and resolve the conflict.

Advantages of the mediation procedure

Mediation in resolving rental disputes has a number of significant advantages over litigation:

1. Time savings. While litigation can take many months or even years, mediators are able to help the parties find a solution that satisfies both parties much faster.
2. Offloading the courts. The mediation route reduces the burden on the court system by allowing the courts to focus on the most complex and intractable precedents.
3. Constructive dialog. The mediation process tends to be more informal than court proceedings. This creates an atmosphere conducive to constructive dialog and compromise between landlord and tenant.

If the mediation procedure does not lead to the desired result, the parties always have the option of going to court.

Expanding the rights of landlords

In parallel with the creation of the mediation service, Turkish lawyers have carried out extensive work to clarify and expand the rights of owners of residential real estate. Now the owners have a clearer understanding of their rights and opportunities when interacting with tenants. An important innovation was the consolidation of the right of the owner to conduct inspections of the property by potential buyers. The only condition is that tenants must be notified in advance. Such visits cannot now be unreasonably prohibited by tenants. The new rules in no way diminish the existing rights of tenants to live in peace and protection from unjustified eviction. They are designed to balance the interests of tenants and property owners, creating fairer “rules of the game” for both parties.

Strengthening the role of contractual obligations

Under the new system, the role of written tenancy agreements increases significantly. It is recommended that all the terms and conditions of renting a home be spelled out in detail in such an agreement: the rights and obligations of the parties, the procedure for inspections, the rules of notification of sale, and much more. This will minimize the number of potential disputes between landlords and tenants. The new rules on repairing rental housing are also clearly spelled out. It is now more clearly defined what types of work should be done by the owner and what is the responsibility of the tenant. This will remove one more reason for numerous conflicts.

Updating for modern realities

The authors of the new system also took into account current trends in the rental market, in particular, the active development of short-term daily rent of apartments and houses through such platforms as Airbnb and Booking.com. Additional mechanisms for regulating this segment have been proposed to safeguard the interests of homeowners.

Flexibility and adaptability of the new system

An important feature of the new rules is their flexibility and adaptability to the changing realities of the real estate market. Mechanisms are provided for regular revision and updating of the rules taking into account changes in the economic situation and new trends in the rental and real estate sector. Thus, the system will not remain frozen, but will be able to develop and improve, meeting the current needs of market participants. This guarantees its effectiveness in the long term.

Strengthening compliance with the rules

The innovations also imply the introduction of stricter control over how landlords and tenants fulfill the terms of lease agreements. The relevant government agencies will monitor the activities of both parties more closely. For landlords, this means the need to strictly comply with all prescribed rules. At the same time, tenants will also have to be more responsible and strictly follow the requirements of the contract.

Prospects for owners and investors

Thanks to the new regulations, property owners in Turkey have more confidence in the management of their property. They may not be afraid of difficulties with the sale of housing in the presence of tenants. This, in turn, makes the rental market more attractive. The new system protects the rights of owners and opens additional prospects for foreign investors. Buying real estate in Turkey becomes a safer and more profitable investment with the possibility of a stable rental income.

Expected price fluctuations

Market experts predict some growth in rental rates in the short term. This is due to the fact that landlords may try to build into the price the potential risks associated with the new rules for evicting tenants. However, in the long term, the situation should stabilize. Increased supply in the rental market due to the influx of new landlords may even lower rental rates slightly.

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Adaptation period and the importance of complying with the new rules

Experts note that the transition to the new system may not be entirely smooth. It will take some time for all market participants — landlords, tenants, intermediaries and the judiciary — to adapt to the new mechanisms and procedures. There may be initial difficulties and misunderstandings. It is therefore important to be patient and follow all new regulations as carefully as possible. Clear adherence to the rules by both landlords and tenants is the key to a successful system.

Experts' recommendations for mastering the new rules

For those who plan to invest in Turkish real estate or already own it, experts give the following recommendations for mastering the new rules:

1. Thoroughly study all the innovations to understand your rights and obligations as a homeowner. If necessary — consult with real estate experts or lawyers.
2. Be extremely careful when concluding lease agreements, specifying all the details and nuances. This will help to avoid many disputes in the future.
3. Track changes in legislation and adjust your actions accordingly. Remember that the system is open for improvement.
4. Show patience during the transition period and be prepared for some temporary inconveniences associated with adapting to innovations.
5. In case of disputes — try to use the mediation service first of all for peaceful resolution of the conflict.

Compliance with the new rules and timely legal advice will help owners to make the most of the opportunities provided to protect their rights.

Benefits for foreign investors

The new system of regulation of rental relations opens additional prospects for foreigners considering the purchase of real estate in Turkey for investment purposes. The reforms increase the attractiveness and security of such investments. Investors can be more confident in protecting their rights as owners when renting out their homes. This stimulates the inflow of foreign capital into the Turkish real estate market. In turn, the growth of investment demand will contribute to the further development of this sector of the country's economy. The industry will get a new impetus for growth.

Balanced approach to the interests of all parties

Despite the emphasis on protecting the rights of owners, the new rules do not infringe on the legitimate interests of tenants. On the contrary, the system aims to create a more balanced model, where the needs of every participant in the rental market are equally considered. Tenants still have the right to a quiet stay, inadmissibility of unjustified eviction and other guarantees. At the same time, landlords are now given greater opportunities to pursue their interests if they do not contradict the law.

In general, the introduction of a new system of regulation of landlord-tenant relations in Turkey can be assessed as an important step towards the creation of a more civilized and fair rental housing market. Strengthening the protection of landlords' rights while maintaining a balance of interests, introducing mechanisms for pre-trial conflict resolution, and updating regulatory norms — all this will increase the transparency and attractiveness of the Turkish rental housing market. The new system not only protects the investments of real estate owners, but also stimulates the development of this sector of the economy. Owners who were previously wary of renting out their homes have more guarantees. This may lead to an increase in supply on the rental market. At the same time, the interests of tenants are not compromised. It simply creates clearer and fairer “rules of the game”, compliance with which is mandatory for both parties.

Adaptation and further improvement

Of course, the transition to the new system will require some time, patience and effort from all participants in the process. Temporary difficulties and misunderstandings at the initial stage are likely. However, this is a normal situation for any serious reforms. The main thing is to stay the course and let the system work, improving it as shortcomings are identified. Feedback mechanisms and prompt adjustments in accordance with market needs will play an important role. Flexibility and adaptability are the key to the successful functioning of the new rules in the long term.

Professional support at all stages

Of course, it is quite difficult to understand all the nuances of the new system on one's own. Especially when it comes to foreign investors who are not fluent in the Turkish language and local specifics. In such a situation it is advisable to resort to the services of professional consultants — lawyers, real estate specialists, financial advisors. They will help:

— Better understand the new rules and regulations;
— Competently prepare documents, including lease agreements;
— Advise on all issues of effective real estate management under the reforms;
— Provide professional support in case of conflicts and disputes.

Competent support will allow investors and owners to realize their plans and interests in the renewed Turkish rental market as safely and profitably as possible.

Conclusion

To summarize, we can say that the new rental regulation system in Turkey marks the beginning of an important stage in the development of this segment of the real estate market.

The key merits of the reform:

— A balanced approach that takes into account the interests of all parties;
— Strengthened protection of owners' rights;
— Acceleration of dispute resolution processes through mediation procedures;
— Adaptation of the rules to modern trends like short-term rentals;
— Openness of the system for further changes and improvements;
— Attracting foreign investment by increasing the security of investments;
— Stimulating the development of the rental market as a whole.

Of course, the transition period may not be easy. It will require patience, mutual understanding and willingness to follow the new rules on the part of all participants in the process. However, in the long term the reforms should bring obvious results — a more civilized and fair rental market, where everyone's interests are reliably protected. And this is a prerequisite for the growth of investment attractiveness of Turkey as a country with great potential in real estate.

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