Tenant’s Right to Claim Useful Expenses in Turkish Lease Law (Based on Court of Cassation Precedents)

One of the most common areas of dispute in lease agreements between landlords and tenants is whether a tenant can recover the costs of improvements, renovations, or structural changes made to the leased property (residential or commercial). These changes, often intended to preserve or increase the property’s value, raise questions about the tenant’s right to compensation—especially when the lease ends.

Under Turkish law, these improvements are categorized as “useful and necessary expenses.” However, the legal status of such claims heavily depends on whether the landlord gave prior written consent, whether the lease agreement includes specific clauses prohibiting such claims, and whether the tenant has vacated the property properly.

This blog summarizes the legal framework under Article 321 of the Turkish Code of Obligations (TBK) and explores binding Court of Cassation (Yargıtay) precedents that shape the tenant’s compensation rights.

Legal Basis: Article 321 of the Turkish Code of Obligations (TBK)

According to TBK Article 321:

“The tenant may make innovations or alterations in the leased property with the landlord’s written consent.
The landlord who consents to such innovations cannot demand the restoration of the property to its original condition unless otherwise agreed in writing.
Unless otherwise agreed in writing, the tenant cannot claim compensation for the increase in the property's value caused by the changes.”

Key Implications:

• Written consent from the landlord is a prerequisitefor making modifications.

• If the landlord acceptsthe changes (expressly or tacitly), restoration to the original condition is not required—unless agreed otherwise.

• Without a separate written agreement, the tenant cannot demand reimbursementfor the value increase during the lease term.

Exceptions Based on Judicial Interpretation

While TBK Article 321(3) limits tenant claims, Turkish high courts interpret the rule narrowly:

Yargıtay’s View:

• If the lease ends properly, and

• The improvements benefit the landlord, and

• The items cannot be removed without damage,
  then the tenant may claim compensation under the principle of unjust enrichment, even without prior agreement.

This creates an important post-termination right, provided certain conditions are met.

What Kind of Expenses Are Compensable?

Yargıtay categorizes tenant expenses into three types:

TypeCompensation RightExamplesNecessary (Zorunlu)YesPlumbing, heating repairsUseful (Faydalı)Yes (if landlord benefits)Built-in storage, lighting upgradesLuxury (Lüks)No (unless agreed)Decorative items, high-end finishes

When Can the Tenant Demand Reimbursement?

• The lease must have ended properly(not just physical vacating, but legal handover of keys).

• The landlord must have benefitedfrom the improvements (e.g., continued to use them).

• The tenant must prove the improvements were permanentand added objective value.

• Courts deduct depreciation(wear and tear) from the value of improvements.

Sample Ruling (Yargıtay 3rd Civil Chamber, 2019):

“If a tenant makes improvements with the landlord’s consent that cannot be removed and are accepted by the landlord, they may seek reimbursement based on the value at the time of completion, minus depreciation.”

What If the Lease Agreement Prohibits Claims?

Lease agreements often include clauses that say:

“The tenant shall not claim compensation for any improvements or alterations made to the property.”

Does this clause always block tenant claims?
Not necessarily. Turkish courts differentiate based on how and why the lease ends:

If the Tenant Terminates Early:

• Courts allow pro-rata compensationfor the unexpired term.

• Even with a "no claim" clause, landlords may still owe compensation.

If the Lease Ends as Scheduled:

• The clause becomes binding, and the tenant generally cannot claimcompensation.

What About Illegal or Unauthorized Constructions?

If a tenant makes additions without permits or in violation of zoning laws:

• The improvements may be subject to demolitionunder the Building Code.

• Courts do not protecteconomic value arising from illegal constructions.

• Claims for compensation in such cases are rejected, even if the landlord benefits.

Landlord’s Duty to Restore or Accept Changes

Even if a lease allows the landlord to request restoration, courts hold:

• If the landlord continues to usethe improvements after termination,

• Or rents the property to a new tenantwith those improvements intact,
  this is deemed acceptance, and restoration cannot be demanded.

Who Is Responsible for Repairing Broken Items in a Rented Apartment in Türkiye: Tenant or Landlord?

Legal Responsibility in Turkish Rental Contracts

Under Turkish law, particularly the Turkish Code of Obligations (TBK), both tenants and landlords have clearly defined rights and obligations. One of the most frequently disputed issues is who is responsible for repairing broken items or damages that occur in a rented property. The answer depends on the nature of the defect, whether it arises from normal wear and tear, misuse, or structural failures, and whether the property is furnished or not.

What Is a Defective Performance? (Ayıplı İfa)

If the rental property has defects that make it partially or wholly unusable at the time of delivery or during the lease term (such as a broken boiler, leaking ceiling, or defective electrical wiring), this is considered "ayıplı ifa" under Turkish law. In such cases, the landlord is typically responsible for remedying the problem. This is governed primarily by Article 304 and following of the Turkish Code of Obligations.

Tenant's Obligation for Daily Maintenance (TBK Article 317)

Tenants are responsible for the regular maintenance and minor repairs arising from normal use of the apartment. These include:

• Changing lightbulbs,

• Replacing faucet washers,

• Regular cleaning of radiators,

• Basic upkeep of appliances in furnished apartments,

• Small touch-up painting.

These fall under the tenant’s duty of "careful use" and are part of the normal upkeep that does not involve significant cost or effort.

Landlord’s Responsibility for Major Repairs (TBK Articles 317 & 318)

Landlords, on the other hand, are responsible for non-routine, structural, and major repairs, especially those unrelated to tenant misuse. This includes:

• Repairing or replacing broken heating systems (e.g., combi boiler),

• Fixing ceiling leaks or insulation issues,

• Repairing broken plumbing or electrical systems,

• Repairing or replacing major appliances in furnished apartments,

• Structural damage to flooring, tiles, or walls.

Tenants must notify the landlord in writing without delay and give them a reasonable period to resolve the issue. If the landlord fails to act, the tenant may have the right to repair the issue and deduct the cost from the rent (with proof).

What Happens If the Tenant Fails to Notify?

Under Article 318 TBK, if the tenant fails to notify the landlord of a serious issue, they may become liable for any secondary damage that could have been prevented. For example, if a leaking pipe is not reported and ends up damaging the flooring, the landlord may hold the tenant liable for the extended damage.

Can the Tenant Pay for Repairs and Deduct from Rent?

Yes, but only under certain conditions:

• The tenant must first notify the landlord and request repair.

• The landlord must fail to act within a reasonable time.

• The repair must be necessary and urgent.

• The tenant must keep all receipts and provide proof.

Even in such cases, it is highly recommended to document the process thoroughly and consult a legal advisor.

Can the Tenant Terminate the Lease or Seek Compensation?

If the defect is serious and makes the property partially or completely unusable, the tenant may:

• Request a reduction in rent,

• Claim compensationfor damages,

• Terminate the lease contractwithout penalty, if the defect is not fixed within a reasonable time.

This applies particularly in situations where heating, electricity, or structural integrity is compromised.

Yargıtay (Court of Cassation) Decisions Supporting These Principles

Turkish case law reinforces the above principles. Here are selected highlights:

1. Spiral pipe issue = Tenant’s duty “…the spiral pipe problem was part of ordinary maintenance and should be fixed by the tenant.” (Yargıtay 20. HD, E. 2020/443, K. 2020/3012)
2. Combi boiler fault = Check tenant’s fault “…it must be determined whether the tenant had any fault in the combi boiler’s failure.” (Yargıtay 3. HD, E. 2004/1763, K. 2004/2081)
3. Notification obligation “…the tenant must inform the landlord of defects within a reasonable time.” (Yargıtay 3. HD, E. 2017/2397, K. 2017/2466)
4. Deadline for repair before termination “…the tenant must give the landlord a reasonable deadline before terminating the lease.” (Yargıtay 3. HD, E. 2018/3298, K. 2019/9186)
5. Court permission for large repairs “…if the repair cost is high, the tenant must seek court approval before proceeding.” (Yargıtay 6. HD, E. 2013/14892, K. 2014/7953)
6. Rent deduction must be calculated properly “…rent deduction must be proportional to the duration and severity of the defect.” (Yargıtay 3. HD, E. 2019/4869, K. 2019/10369)

Conclusion: Get Legal Advice Before You Act

Disputes between tenants and landlords often arise from unclear boundaries of responsibility. For tenants, documenting problems early and informing the landlord is key. For landlords, maintaining habitability is a legal obligation.

At Bayraktar Attorneys, we assist both landlords and tenants in drafting balanced lease agreements, settling disputes amicably, or representing them in court when necessary. Whether you are leasing or renting property in Türkiye, knowing your legal rights and obligations is essential.

Conclusion: Protecting Tenants’ Rights Within Legal Boundaries

While tenants cannot always demand compensation for improvements, Turkish law provides important rights when:

• Changes were made with consent,

• The lease ended properly,

• The landlord benefits from the improvements.

Tenants and landlords alike should:

• Put all permissions and expectations in writing, and

• Document changeswith photos and receipts,

• Deliver the keys formallywhen terminating the lease.

At Bayraktar Attorneys, we help tenants navigate complex lease terminations, secure rightful compensation, and defend against abusive landlord practices. We also advise landlords on compliance and risk mitigation in commercial and residential lease contracts.

Need Legal Help with Lease Disputes?

We offer services such as:

• Drafting and reviewing lease contracts

• Compensation claims for useful or necessary expenses

• Representation in eviction or reimbursement lawsuits

• Mediation between landlords and tenants

📩 Contact us today to schedule a consultation.