Foreign Investor Purchases a Shop With a Long-Term Lease in Turkey: Can the Rent Be Increased? (2026 Updated Guide)

A foreign investor buys a commercial shop in Turkey with an existing long-term tenant. Learn whether the new owner can increase the rent, when a rent determination lawsuit may be filed, and what happens after five years.

Purchasing a commercial property in Turkey does not automatically terminate an existing lease or allow the new owner to immediately replace the agreed rent with the current market rent. This issue becomes particularly important where a foreign investor purchases a valuable shop, office or other commercial property occupied under a long-term lease signed years earlier. The property’s market value may have increased dramatically while the contractual rent remains comparatively low. The new owner may therefore ask: Can I increase the rent immediately after purchasing the property?

The answer depends on the existing lease, its duration, the date on which the tenancy began, contractual rent-increase provisions, whether five years have passed, the applicable statutory rent-adjustment rules and whether the conditions for a rent determination lawsuit are satisfied.

Does the Existing Lease Continue After the Shop Is Sold?

As a general principle under Turkish lease law, sale of the leased property does not automatically terminate the lease.

The purchaser generally becomes the landlord under the existing lease relationship. Therefore, a foreign investor purchasing a tenanted commercial property should assume that the existing tenant and lease may continue after title transfer unless there is a separate lawful basis for termination.

This makes lease due diligence essential before acquisition.

Can the New Owner Immediately Increase the Rent?

Generally, purchasing the property alone does not create an unrestricted right to impose a new market rent.

The new owner ordinarily steps into the existing landlord’s position. The investor therefore cannot simply inform the tenant:

“I purchased the shop, so your previous rent is cancelled and the new rent is this amount.”

The rent adjustment must comply with the lease and mandatory provisions of Turkish law.

The Purchase Price of the Property Does Not Determine the Rent

A foreign investor may purchase a shop for a substantial amount because of its location, redevelopment potential or current market value.

That acquisition price does not automatically allow the investor to recalculate the tenant’s rent according to the expected investment yield.

For example, buying a shop at a significantly higher value than its previous owner paid does not by itself create a legal right to multiply the tenant’s existing rent.

Review the Lease Before Purchasing the Shop

The investor should obtain the complete lease agreement before closing.

Important points include:

• original commencement date;
• duration of the lease;
• current rent;
• rent-increase provision;
• payment dates;
• deposit;
• renewal provisions;
• permitted business activity;
• sublease provisions;
• guarantees;
• amendments and supplementary agreements;
• previous rent disputes;
• pending litigation;
• notices previously sent to the tenant.

A property that appears commercially attractive can produce a very different return once the existing lease is examined.

Why Is the Original Lease Date Important?

The commencement date can be critical because Turkish law distinguishes between ordinary annual rent increases and rent determination after a longer tenancy period.

In particular, the five-year point can materially change the legal analysis.

Therefore, the investor should determine the actual beginning of the lease rather than simply looking at the date on which the property was purchased.

Does the Five-Year Period Restart When the Property Is Sold?

Normally, the sale itself should not be treated as creating an entirely new lease merely because the landlord changes.

If the tenant has occupied the property under the same lease relationship for years, the new owner should examine that existing tenancy history when evaluating the availability of rent determination remedies.

This can be extremely important for investors purchasing properties with old commercial leases.

What Happens During the First Five Years?

For residential and roofed workplace leases falling within the relevant Turkish Code of Obligations provisions, rent increases are subject to statutory limitations.

The parties’ contractual increase clause must therefore be evaluated together with the mandatory legal framework applicable to the relevant renewal period.

The landlord cannot simply disregard statutory restrictions because the property is commercial.

What Happens After Five Years?

Once the lease relationship has exceeded five years, the rent determination mechanism becomes particularly important.

In determining the rent for renewed periods after the relevant five-year threshold, the court may consider factors including the applicable statutory index, the condition of the leased property and comparable rental values.

This can create an important remedy where an old contractual rent has fallen substantially below current market conditions.

Can the New Owner File a Rent Determination Lawsuit?

Potentially, yes.

If the statutory conditions are satisfied, the purchaser who has become the landlord may pursue determination of the rent.

However, the timing of the lawsuit and the date from which the determined rent will become effective require careful analysis.

Timing Can Affect an Entire Year’s Rent

A landlord should not wait until a dispute develops and then assume that a court-determined rent will automatically apply retrospectively to any desired date.

The timing of notices and proceedings can materially affect when the newly determined amount becomes effective.

For a high-value commercial property, a procedural mistake affecting one rental year can represent a significant financial loss.

Is a Notice to the Tenant Important?

It can be very important.

Before the relevant renewal period, the landlord should evaluate whether a written notice concerning the requested rent should be served and how the statutory timing requirements affect the proposed rent determination.

The investor should plan this immediately after acquisition rather than shortly before the lease renewal date.

Comparable Commercial Rents Can Be Critical

Where market rent becomes relevant, comparable properties can play an important role.

Useful comparisons may include shops with similar:

• location;
• street frontage;
• floor area;
• commercial visibility;
• pedestrian traffic;
• building quality;
• permitted use;
• floor level;
• physical condition;
• accessibility.

A small shop on a major commercial street should not necessarily be compared with a larger but less commercially attractive property in a secondary location.

Online Advertisements Are Not Necessarily Conclusive

Online rental advertisements can provide market information, but advertised rents are not always the same as rents actually agreed and paid.

A strong rent determination file should therefore avoid relying exclusively on screenshots of expensive listings.

Court-Appointed Experts May Examine Comparable Properties

In a rent determination dispute, expert analysis may become important. The physical and commercial characteristics of the leased property and comparable properties can be examined.

The landlord should therefore preserve accurate information concerning the shop’s size, location, condition and commercial characteristics.

Can the Investor Increase the Rent Because the Tenant’s Business Is Profitable?

Not automatically.

The tenant’s turnover or profitability does not by itself allow the landlord to disregard the contractual and statutory rent framework.

The legal analysis focuses on the lease relationship and applicable rent-determination rules.

Can the Tenant Refuse Every Increase?

No.

A tenant cannot necessarily insist that the original nominal rent remain unchanged indefinitely. Contractual and statutory mechanisms may allow annual increases, and longer-term leases may become subject to judicial rent determination where the conditions are satisfied.

What If the Tenant Pays Less Than the Properly Increased Rent?

The landlord should first calculate the legally payable rent carefully.

If the tenant fails to pay the amount legally due, the landlord may evaluate appropriate claims and enforcement remedies. However, an excessive or legally unsupported rent demand should not be treated automatically as an undisputed rental debt.

Do Not Create an Artificial Rent Debt

A new owner should avoid sending an arbitrary notice stating that the rent has doubled and then immediately treating the difference as unpaid rent.

The legally enforceable amount must first be established under the lease and applicable Turkish law.

Can the New Owner Negotiate a New Rent?

Yes.

The landlord and tenant may negotiate commercially.

For example, the parties may agree on a new rent as part of a broader arrangement involving:

• extension of the lease;
• renovation rights;
• new security;
• revised payment dates;
• maintenance responsibilities;
• early termination rights;
• expansion or modification of the leased area.

For commercial properties, negotiated restructuring can sometimes produce a faster and more predictable result than litigation.

Be Careful With New Lease Agreements

A landlord should understand the legal consequences before cancelling an existing agreement and signing a completely new lease.

The wording may affect future rights, obligations and disputes.

A document intended merely to record a rent increase should not unintentionally restructure the entire tenancy.

Can the New Owner Evict the Tenant Instead?

Purchasing a leased commercial property does not automatically give the purchaser an unrestricted eviction right.

However, Turkish law provides specific grounds and procedures that may become relevant depending on the circumstances, including certain acquisition-related needs and other statutory termination grounds.

The existence of an eviction remedy should be analyzed separately from the right to increase rent.

Buying the Shop Solely to Increase the Rent

A foreign investor should distinguish three different objectives:

1. keeping the tenant and increasing rent lawfully;
2. terminating the tenancy where a valid legal ground exists;
3. negotiating a new commercial arrangement.

Each objective requires a different legal strategy.

Long-Term Lease Due Diligence Before Closing

Before purchasing a tenanted shop, the foreign investor should calculate the investment return using the legally realistic rent, not merely the market rent advertised for vacant shops.

This is one of the most important due diligence points in commercial real estate acquisitions in Turkey.

Check Whether the Lease Has Been Amended

An old lease may have several subsequent protocols.

These documents may change:

• rent;
• term;
• renewal arrangements;
• security deposit;
• guarantor obligations;
• permitted use;
• termination provisions.

The investor should request all amendments rather than reviewing only the original agreement.

Check Actual Bank Payments

The contractual rent and the amount actually being paid may differ.

Bank records can help establish the payment history and identify whether the parties previously agreed to different rent amounts.

Investigate Previous Rent Litigation

Before acquisition, determine whether the existing landlord and tenant have already litigated over rent determination, adaptation, eviction or unpaid rent.

A prior judgment may materially affect the investment analysis.

What If the Rent Is Extremely Low Because of Inflation?

A dramatic difference between contractual rent and current market rent does not automatically permit unilateral adjustment.

However, depending on the duration and circumstances of the lease, statutory rent determination mechanisms may provide a route for addressing a substantial market discrepancy.

Rent Determination and Rent Adaptation Are Different

Investors should distinguish an ordinary rent determination claim from broader contractual adaptation arguments based on extraordinary circumstances.

They have different legal foundations and conditions.

A landlord should not select the type of lawsuit merely because one appears likely to produce a larger increase.

Foreign Ownership Does Not Change the Tenant’s Rights

A foreign investor generally acquires the property subject to the applicable Turkish lease-law framework.

The fact that the landlord is a foreign individual, international company or foreign investment vehicle does not itself create broader rent-increase rights.

Foreign Investors Should Model the Lease Before Acquisition

Before signing the purchase agreement, calculate:

• existing annual rent;
• lawful near-term increases;
• date of the fifth lease year;
• potential rent determination timing;
• market comparables;
• expected litigation period;
• taxes and property expenses;
• vacancy risk;
• potential eviction issues.

The legal lease analysis should be incorporated into the financial model.

Can the Seller Be Liable for Misrepresenting the Rent?

Potentially.

If the seller represented that the property generated a particular rent, concealed lease restrictions or supplied inaccurate information concerning the tenant, contractual remedies may need to be examined.

This is particularly important in investment acquisitions where rental income was a material element of valuation.

Purchase Agreements Should Contain Lease Representations

A well-structured commercial property acquisition agreement can address the existence and accuracy of leases, side agreements, rent arrears, deposits, litigation, notices and tenant concessions.

Foreign investors should not rely exclusively on verbal representations by the seller or real estate agent.

Immediate Strategy After Purchasing a Tenanted Shop

After acquisition, the foreign investor should obtain the complete lease file, confirm the original commencement date, identify the current legally payable rent, examine the next renewal date, determine whether the five-year rent determination framework is relevant, collect market comparables, review prior notices and litigation, and prepare any required notice or legal action before the relevant procedural deadlines.

Frequently Asked Questions

Can a foreign investor immediately increase the rent after buying a shop in Turkey?

Generally, the purchase itself does not create an unrestricted right to impose a new rent. The existing lease and Turkish rent rules must be examined.

Does the existing tenant have to sign a new lease with the buyer?

The transfer of ownership does not ordinarily mean that the existing lease automatically disappears and must be replaced with a new agreement.

Does the five-year period start again when the property is sold?

The acquisition itself generally does not mean that the historical lease relationship simply starts from zero. The original tenancy history should be examined.

Can market rent be considered after five years?

Yes. Under the applicable rent determination framework, comparable rental values and the condition of the property can become relevant together with the other statutory criteria.

Can the landlord simply double the rent if nearby shops are twice as expensive?

Not merely by unilateral declaration. The applicable contractual and statutory mechanism must be followed.

Can the foreign owner file a rent determination lawsuit?

Potentially, yes, where the legal conditions are satisfied.

Is the timing of the lawsuit important?

Yes. Timing can affect the rental period from which a judicially determined amount becomes applicable.

Can the investor evict the tenant because the rent is too low?

Low rent alone should not be treated as an automatic eviction ground. Eviction requires a legally recognized basis and the appropriate procedure.

Should the lease be reviewed before purchasing the property?

Absolutely. A long-term tenant paying below-market rent can materially affect the property’s investment value.

What is the most important issue for a foreign buyer?

Do not value a tenanted commercial property as though it were vacant. Before purchasing the shop, determine the existing tenant’s legal position, the actual lease history and when Turkish law realistically permits the rent to be brought closer to current market conditions.

Client-Focused Legal Support for Foreign Investors Purchasing Tenanted Commercial Property

Purchasing a shop with an existing tenant can create disputes concerning below-market rent, long-term leases, rent determination, rent increases, eviction, lease amendments and investment valuation. Fırat Fesih Kaya Law Office assists foreign individuals, international companies and foreign investors purchasing commercial real estate in Turkey. Lawyer Fırat Fesih Kaya provides legal assistance with lease due diligence, rent determination proceedings, landlord-tenant disputes, acquisition documentation and legal strategies concerning existing commercial tenants.

Phone: +90 312 434 22 22

Mobile: +90 532 769 22 22

Email: info@firatfesihkaya.av.tr

Address: Mevlana Boulevard No:221, Yıldırım Tower, Office No:148, 06520 Balgat, Çankaya, Ankara, Turkey