First and foremost, there is no specific regulation for foreigners under Turkish Law concerning rental agreements. In Turkey, the law regarding the rental of commercial properties is generally based on legal regulations such as the Turkish Obligations Code – Provisions of Leasing of the Residential Premises and Business Premises with Roof (Turkish Code of Obligations Art. 339) and the Turkish Commercial Code. The process and legal regulations of commercial property leasing can be summarized as follows.
Rights and Obligations of the Parties
Contents
A commercial property lease agreement is usually made between the tenant and the property owner. It is important to define the rights and obligations between the parties. The tenant transfers the right to use the property for a certain period, while the property owner receives the rent and leases the property to the tenant under certain conditions.
Form and Content of the Lease Agreement
According to the Turkish Code of Obligations, lease agreements must be in writing. The contract should include the identities of the parties, the characteristics of the leased property, the rent amount, payment terms, the lease term, and other important conditions.
Rent Amount and Increases
The rent amount is determined by mutual agreement between the parties. Rent and increases must generally fall within the limits specified in the Turkish Code of Obligations and other relevant legislation.
Payment of Rent and Penalties for Delay
The tenant must pay the rent within the specified period. In case of non-payment of rent by the tenant, the property owner can collect it through legal means or terminate the contract.
Use and Maintenance of the Leased Property
The tenant is responsible for using the leased property for the specified purposes. Additionally, the tenant is responsible for properly maintaining and repairing the property.
Tenant’s Rights and Landlord’s Obligations
The tenant has the right to use the leased property peacefully and safely. The property owner is responsible for ensuring the security of the leased property and maintaining common areas.
In accordance with the provisions of the Turkish Commercial Code, pre-establishment lease agreements can be signed by founding shareholder or their designated representatives before the establishment of the company. In the case of a company headquartered abroad authorizing an individual for the opening of a branch in Turkey, the authorized person may also sign the lease agreement. Following the establishment of a joint-stock company or a limited liability company, the managing director or a board member with sole signing authority is empowered to sign the lease agreement. If dual signatures are stipulated in the articles of association, the lease agreement shall also be signed accordingly.
Furthermore, a branch manager can sign a lease agreement for the branch transactions, adhering to their specified authorization limits.
On the other hand, virtual offices which are very common in Turkey provide a physical address and office-related services without the overhead of a long lease and administrative staff. The option to rent a virtual office is suitable for JSC, LLC and Branch offices. In case of the rental of a virtual office, the company or the branch pays a rental amount monthly or yearly including certain services such as legal address, answering and transferring calls, technical and infrastructure set-up, mail and fax handling, and limited meeting room use. Private rooms and meeting rooms can be used limitedly with an appointment are among its disadvantages.
