Legal Brake on Soaring Rents in Turkey: “Equity Discount” Could Benefit Tenants

As rental prices across Turkey continue to climb, more and more people are turning to the courts in search of relief. One legal concept that’s gaining attention in these rent determination lawsuits is the so-called “equity discount”, and it could offer a significant advantage for tenants feeling the squeeze.

Lawyer Mücahid Küçük recently shared insights into this important issue, shedding light on how the equity discount works and how renters can benefit from it in court.

What is the Equity Discount in Rent Lawsuits?

According to Küçük, Turkish law allows judges to apply a concept called the “equity discount” when determining fair rental prices in legal disputes. This isn’t a newly invented tool but rather one rooted in established Supreme Court precedents. The basis comes from a single key word in the law—“hakkaniyet”, or equity—which gives judges discretion to adjust the calculated rental value downward in the name of fairness.

Here’s how it works in practice: In rent determination cases, expert reports often assess the market rental value of a property as if it were vacant. Judges typically take that value and reduce it by around 10% to 20%, considering equity. This reduction is meant to reflect the real-life circumstances of the tenancy, which are usually more complex than simple market conditions.

Why This Matters for Tenants

The equity discount can be a game-changer for tenants who are struggling to keep up with steep rent hikes. Since 2022, Turkey introduced a temporary 25% cap on rent increases, but this cap is no longer in place. Now, rents are usually adjusted based on inflation data—recently around 43%. That’s a significant jump for many households.

So, when a rent determination lawsuit is filed—either by landlords or tenants—the outcome can drastically change a renter’s financial burden. Asking the court to apply an equity discount could mean the difference between an unmanageable rent and a fairer, more sustainable one.

The Importance of Including It in the Legal Petition

One crucial point Küçük emphasizes is that renters need to be proactive. If you’re a tenant involved in a rent dispute, it’s essential to include a request for the equity discount directly in your legal petition. While judges are supposed to consider it even if it’s not requested, pointing it out specifically increases the chances that it’ll be applied.

Factors that may influence the judge’s decision include the property’s age, its location, how long the tenant has lived there, and the overall condition of the home. All of these could tilt the equity discount percentage higher.

In cases where landlords initiate the lawsuit, tenants still have the right to request the equity discount during the proceedings. But if you’re the one filing the case, it’s even more important to make that request clearly and early.

Final Thought

As living costs continue to rise in Turkey, legal tools like the equity discount are becoming more relevant than ever. If you’re a tenant facing a rent increase or considering a rent determination lawsuit, understanding your rights—and how to frame them legally—could help you achieve a more just outcome.