Renting a Luxury Home in Istanbul: Deposits, Rent Rises

When you rent a luxury home in Istanbul, what the lease says matters as much as the rent. By law, a deposit can be at most three months’ rent, increases at renewal cannot exceed the change in the 12-month average CPI over the previous lease year, and the lease should state clearly who pays the service charge and other costs. Foreign tenants also need a notarised copy of the lease for their residence permit application.

The lease: what it should cover

Residential leases fall under tenant-protection provisions of the Turkish Code of Obligations (TBK), most of which cannot be changed to the tenant’s disadvantage. At the top end of the market, a lease that spells out the following avoids most problems later:

• Rent, due date and payment method
• Term and renewal conditions
• Deposit amount and where it is held
• Who pays the service charge, heating, water and electricity
• An inventory, if the home is furnished
• Handover date and a handover report with photos

The landlord must hand over the home on the agreed date in a condition fit for its intended use and keep it that way throughout the lease (TBK Art. 301). The tenant must return it in the condition it was received, but is not liable for normal wear and tear from proper use (TBK Art. 334).

Term and termination

• On a fixed-term lease, unless the tenant gives notice at least 15 days before the end of the term, the lease renews for one year on the same terms. The landlord cannot end the lease simply because the term has expired (TBK Art. 347).
• After a ten-year extension period, the landlord can end the lease without giving a reason, with at least three months’ notice before the end of each renewal year.
• Notice of termination must be given in writing (TBK Art. 348).
• Where the home is leased as a family home, the tenant cannot terminate without the spouse’s explicit consent (TBK Art. 349).

Security deposit: the legal cap

Under TBK Article 342, a deposit on a residential lease cannot exceed three months’ rent (as of October 2026). The law also says how it must be held:

• A cash deposit goes into a time-deposit savings account that cannot be withdrawn without the landlord’s consent; securities are deposited with a bank.
• The bank releases the deposit with both parties’ consent, or on the basis of a finalised enforcement proceeding or court judgment.
• If, within three months after the lease ends, the landlord has not notified the bank in writing that a lawsuit or enforcement proceeding has been started, the bank must return the deposit at the tenant’s request.

Rent increases: the current rule

Agreements on the rent for a renewal period are valid only if the increase does not exceed the change in the 12-month average of the consumer price index (CPI) over the previous lease year. The rule also applies to leases longer than one year (TBK Art. 344).

• The 25% cap has ended: the temporary 25% cap on residential rents applied to renewal periods between 2 July 2023 and 1 July 2024 (TBK Provisional Art. 2). As of October 2026, Article 344 is the rule in force.
• After five years: for leases longer than five years, or renewed after five years, a judge can set the new rent fairly, taking into account the CPI change, the condition of the property and comparable rents.
• Rent in foreign currency: where rent is agreed in a foreign currency, it cannot be changed for five years, subject to Law No. 1567. Setting residential rent in foreign currency between parties resident in Türkiye is, as a rule, prohibited; the exceptions are set out in Decree No. 32 and its implementing communiqué.

The reference rate changes every month with new TÜİK (Turkish Statistical Institute) data, so check the official figure in the month your lease renews.

Service charges and shared costs

The law sets a default split, which the lease can change:

Cost	Default rule
Usage costs such as heating, lighting and water	Tenant, unless the lease or local custom says otherwise (TBK Art. 341)
Compulsory insurance, taxes and similar obligations	Landlord, unless agreed otherwise (TBK Art. 302)
Building or compound service charge (common expenses)	Owner is primarily liable to management (Condominium Law Art. 20); tenant is jointly liable up to the rent amount, and payments are deducted from rent (Art. 22)

In luxury compounds and branded residences the service charge can be significant because it covers security, pools, gyms and concierge services. Write down who pays it, and how major works such as facade renewal or lift replacement will be shared. Note also that the tenant cannot be charged anything beyond rent and ancillary costs, and that penalty clauses for late payment are void (TBK Art. 346).

Furnished or unfurnished?

For a furnished let, a photographed inventory and handover report prevent the most common disputes over the deposit. Furnished or not, the tenant cannot be held liable for normal wear and tear from proper use, and any advance promise to pay extra compensation at the end of the lease is invalid (TBK Art. 334).

Corporate lets

Companies often lease homes for employees. Points to settle:

• When the tenant is a company, it must withhold income tax from rent paid to the landlord (Income Tax Law Art. 94/5-a). The rate is set by Presidential decision, so the lease should state whether the rent is gross or net.
• The lease should name who will live in the home (the employee and family).
• Agree up front what happens if the employee changes, along with early exit terms and notice periods.

Foreign tenants: residence permits and the lease

Short-term residence permits can be granted on several grounds, including tourism and owning property in Türkiye, for up to two years at a time (Law No. 6458, Art. 31). Applicants must provide the address where they will stay (Art. 32).

According to the Presidency of Migration Management’s document list for short-term residence permits, foreigners who rent must submit a notarised copy of the lease showing the landlord’s details (as of October 2026). In practice:

• Before signing, check that the address is open to new residence registrations. Migration Management periodically closes certain neighbourhoods and districts with a high share of foreign residents to new applications.
• Make sure your name on the lease matches your passport exactly.

If you are thinking of buying instead and applying for a property-based permit, note that under the same document list the home used for that permit cannot be rented out or used for other income. Our foreign investor page explains the purchase route.

If there is a dispute: mediation first

Since 1 September 2023, mediation has been a precondition for filing a lawsuit over a lease dispute, except for eviction through summary enforcement proceedings without a judgment (Law No. 6325, Art. 18/B).

Luxury developments in our portfolio

Luxury residences in our portfolio include The Ritz-Carlton Residences Istanbul and Levent Loft in Şişli, and Raffles Istanbul Residences, The Residences at Mandarin Oriental Etiler, Zorlu Center Rezidans and One Ortaköy in Beşiktaş. Ask an advisor about current rental availability, or browse everything on our projects page.

Working with NeoKonut

Leave an enquiry and one of our advisors will call you to go through your budget, preferred neighbourhoods and timing. We also work on homes outside our listed portfolio, and the first consultation is free.

This article is for general information only; please seek legal and tax advice specific to your transaction.