Lease agreements can end under various circumstances. This article examines the situation where the tenant terminates the lease before the term expires. One of the most frequently asked questions in the context of leasing is whether the tenant can vacate the leased property before the lease term ends and, if possible, how the process will be conducted, as well as the legal consequences if the process is not adhered to. Tenants may vacate the leased residence or workplace before the lease term ends due to various reasons, such as relocating to another city or finding a better-located and higher-quality residence or workplace. Below, all situations that may arise in the event of early termination are examined in detail. We recommend reading the article carefully from start to finish.
Early Termination
Lease agreements can be made for a fixed term or an indefinite term. The main topic of this article is the tenant's early termination, meaning vacating the leased property without adhering to the lease term. Early termination refers to vacating the property without complying with the periods specified in the lease agreement. There is no legal regulation that prevents vacating the leased property before the lease term ends. However, various legal consequences may arise if certain rules are not followed. If the tenant vacates the leased property without notifying the landlord, they must pay compensation. This compensation includes the rent for the period when the property is not occupied.
Termination of the Lease Agreement
A lease agreement can end in various ways, depending on the form in which it was made. Some of these reasons originate from the tenant, while others originate from the landlord. Since the main subject of this article is the tenant vacating without adhering to the lease term, other reasons for termination will not be detailed here. For information on these reasons, you can refer to our article titled "Eviction of the Tenant."
a) In Fixed-Term Agreements
In leases for residences and roofed workplaces, the tenant can unilaterally terminate the lease agreement by giving notice at least fifteen days before the end of the fixed term specified in the agreement. If no notice is given within this period, the agreement will be extended for one year under the same conditions. The landlord cannot terminate the agreement based on the expiration of the term agreed upon in the contract. The landlord can terminate the agreement without providing any reason, by giving notice at least three months before the end of the ten-year extension period specified by law. If no notice is given within three months, the lease agreement will be extended for another year.
b) In Indefinite-Term Agreements
In indefinite-term lease agreements, the tenant can terminate the lease agreement at the end of each six-month rental period, by adhering to a three-month notice period. The landlord can terminate the agreement at the end of each six-month rental period, by adhering to a three-month notice period, after ten years have passed since the beginning of the lease agreement. It is not possible to terminate the agreement without adhering to these periods. Various legal consequences arise if these periods are not adhered to.
Damages Arising from Early Termination by the Tenant
The most immediate damage arising from the tenant vacating the leased property without adhering to the lease term is the landlord's loss of income. This is because the landlord will need to seek a new tenant once the current tenant vacates. If a new tenant is not found for a certain period, or if a new tenant is found at a lower rent, significant losses will occur. To prevent this loss, the legislator has regulated the situation of early termination in Article 325 of the Turkish Code of Obligations. According to this, the tenant's obligations under the lease agreement will continue for a reasonable period during which the property can be re-leased under similar conditions.
Payment of Rent for a Reasonable Period After Eviction
One of the primary items considered as compensation in the case of early termination is the continued payment of rent for the period the property remains vacant. However, this obligation should be limited to a certain period. Although there is no specific period, various durations have been reflected in court decisions. According to the Court of Cassation, this period is generally between 2 to 3 months. However, the reasonable period may be shorter or longer depending on the characteristics of the property and the demand from potential tenants.
In addition, this compensation does not only cover the rent but also includes all other expenses that the tenant is responsible for under the lease agreement, such as dues, common expenses, and ancillary costs, for the reasonable period. Therefore, the compensation payable by the tenant will be calculated by multiplying all the items that the tenant would have paid to the landlord if there had been no early termination by the reasonable period. Some items will be deducted from this calculation, and the final compensation will be paid to the landlord. These deductible items are evaluated separately for each case but may include expenditures made on the property, the deposit, and the tenant finding a new tenant before the reasonable period ends.
Finding Another Tenant by the Tenant
The legislator has made it possible for the tenant to avoid the compensation obligation in the case of early termination. If the tenant finds a new tenant to occupy the property after them, they will not have to pay the amounts due for the normal rental period during the reasonable period. However, merely presenting a candidate is not sufficient to relieve the tenant of these obligations. The new tenant candidate must have qualities and financial capability acceptable to the landlord. If these conditions are not met, the landlord is not obliged to lease the property to the tenant's proposed candidate. If the landlord's reason for rejecting the new tenant is justified, the tenant's liability will continue as if no new tenant had been proposed.
However, if the landlord does not present a valid reason or if the reason presented is not reasonable, the tenant's liability is removed. In other words, if the new tenant candidate found by the tenant has the financial capability within objective criteria and meets the average qualifications sought by the landlord, the tenant's obligations under the lease agreement will no longer continue.
Another important point is that the tenant's obligations will continue until the new tenant candidate is proposed to the landlord. That is, if the proposal is made some time after the property is vacated, the tenant is responsible for the obligations up to the date of the proposal.
Justified Reason for Early Termination by the Tenant
If the tenant vacates the leased property without adhering to the lease term due to a justified reason, they will not be held responsible for the compensation mentioned above. Such justified termination can arise from the relationship between the parties or the nature of the leased property. For example, if the leased property, rented as a workshop, turns out to be residential or if the property is structurally unsound for earthquakes, the lease can be terminated for justified reasons due to deficiencies inherent in the property. Another situation would be hostility between the tenant and the landlord, incidents of injury or assault, or criminal convictions resulting from actions taken against each other, which would also justify unilateral termination. Such situations constitute justified reasons for termination and relieve the tenant from the obligation to pay expenses for the reasonable period.
Key Handover
One of the most crucial details in the context of early termination by the tenant is the handover of the keys. Simply vacating the house does not necessarily set the termination date for calculating the reasonable period. Without the handover of the keys, it will not be considered that the tenant has vacated the house. Therefore, if the key handover has not occurred, it will be assumed that the property usage continues, and the obligations of the parties will persist. Additionally, the reasonable period will not commence until the keys are handed over. Hence, the key handover is significant for both the tenant and the landlord.
If the landlord refuses to accept the keys, the tenant can deliver the keys through a notary or court. External deliveries, such as handing the keys to a janitor or a member of the landlord’s family, might be disadvantageous to the tenant. Delivering the keys to someone who is not the landlord’s agent or representative may result in the keys being considered undelivered. Until the delivery is effected, the tenant will be liable for all rent and ancillary expenses.
Offsetting Claims in Reasonable Period Compensation
If the tenant has any claims against the landlord, these claims will be deducted from the compensation to be determined, and the final amount to be paid will be established. These claim items can arise from various reasons. The first to come to mind is the security deposit, which is a main element in most lease relationships. If a security deposit was agreed upon and paid at the beginning of the lease relationship, this amount will be among the items to be deducted. Another claim item can be expenses incurred on the leased property as part of the lease agreement. Additionally, if the rent was paid annually, the portion exceeding the reasonable period can be reclaimed from the compensation to be paid to the landlord. Other external claim items should be determined according to the specifics of the case and evaluated for deduction eligibility.
Competent and Authorized Court
In disputes arising from lease relationships, the competent court is the civil court of peace. A compensation lawsuit for loss of rent due to early termination, to be filed by the landlord, can be brought before the civil court of peace at the place where the contract is performed or where the tenant resides.
Importance of a Lawyer
A compensation lawsuit arising from the tenant’s early termination is a legal process initiated when the tenant unilaterally terminates the lease agreement without adhering to the legal terms before the end of the lease period. In this process, the importance of a lawyer is significant to protect the rights of either the tenant or the landlord and to ensure that the early termination process or the compensation arising from early termination is carried out in accordance with the law.
The duties of a lawyer in a compensation lawsuit arising from the tenant's early termination include protecting the rights of their client, carrying out necessary procedures on behalf of the client during the litigation process, representing the client in court, and taking necessary steps to ensure that the eviction process or the acquisition of compensation after early termination is legally executed.
The lawyer's legal knowledge and experience are of great importance to conduct the compensation lawsuit arising from early termination in a way that does not result in a loss of rights. The lawyer must have the necessary legal knowledge and experience to best defend their client’s rights and must be present alongside their client throughout the litigation process.
Additionally, in the process of a compensation lawsuit arising from early termination, if the client exercises their right to appeal, it is important for the lawyer to take the necessary steps to appeal the court decision through legal channels. This way, it is possible to protect the client’s rights and achieve a fair result.
For all these reasons, the role of a lawyer is critically important in the process of a compensation lawsuit arising from the tenant’s early termination, and working with a lawyer in legal processes is crucial for tenants to ensure their rights are protected and that they do not suffer any loss of rights.
Tenant's Early Termination Lawsuit Petition
In the process of a compensation lawsuit arising from early termination, the role of the lawyer is crucial, and rather than using template petitions, it is necessary to create a lawsuit petition by evaluating each case's unique conditions. Therefore, starting legal processes using sample petitions for a compensation lawsuit can lead to mistakes that may cause many rights to be lost.
To prepare a lawsuit petition for a compensation lawsuit arising from early termination, it is first necessary to assess various details such as whether the tenant had a justified reason for vacating the property, the key handover date, the manner of key handover, whether any payments were made after the eviction, and whether the payment was annual. Afterward, the legal foundations of these details must be determined, and an appropriate legal argument must be prepared.
In the process of preparing the petition, it is also important to prepare it in accordance with the court hearing the case and court rulings. The petition must accurately and comprehensively include details such as the address of the property subject to the lawsuit, the date of the lease agreement, the rent amount, the eviction date, and the tenant’s obligations under the lease agreement.
For all these reasons, rather than starting legal processes using template petitions for a compensation lawsuit arising from early termination, it is crucial to work with a lawyer and prepare a petition according to the specific conditions of each case to ensure the protection of rights.
Notice Example for Early Termination by Tenant
It is necessary to avoid using a template notice for the compensation items arising from early termination. Considering that a notice constitutes a legal declaration of intent, there is a high possibility that such notices may be incorrect, incomplete, or outdated. In fact, it is evident that template texts accessed from the internet are not updated after a certain point. Therefore, it would be beneficial to seek the assistance of a lawyer in the preparation and follow-up of the notice to ensure the protection of your rights.
Supreme Court Decisions
In the event of the lessor's death, the heirs can continue the lawsuit.
“... the case pertains to the collection of the rent receivable lost due to the early termination of the lease and the transformer cost to be paid by the tenant according to the lease agreement. Upon the death of one of the plaintiffs during the trial, the remaining heirs continued the lawsuit.”
Supreme Court 3rd Civil Chamber 2022/7703 E., 2022/9758 K.
If the key is not delivered to the lessor, the tenant is responsible for the rent debt.
“As a rule, for the leased property to be considered vacated (for the tenant to have fulfilled the obligation to return the leased property), it is not sufficient for the property to be physically vacated. The key must also be delivered to the lessor. The tenant is obliged to pay the rent until legal termination and key delivery occur. The burden of proving that the key was delivered to the lessor in due form with written evidence lies with the plaintiff/tenant. As long as the key is not delivered, it is assumed that the leased property is in the tenant's use.”
Supreme Court 3rd Civil Chamber 2017/8435 E., 2019/4558 K.
The date of delivery to the notary is considered the delivery date when the key is delivered to a notary.
“In the expert report obtained by the court, the reasonable period for the property to be re-rented was determined to be three months, and it should be accepted that the tenant is responsible for the compensation of the three-month reasonable period. In this context, the court should consider the date of 18.01.2013, when the delivery of the key to the notary was notified to the defendant, as the date of evacuation, and calculate the rent until this date and the three-month reasonable period compensation after this date, and make a decision accordingly. It is incorrect to decide as written.”
Supreme Court 3rd Civil Chamber 2017/3331 E., 2018/6999 K.
If a penalty clause is included in the lease agreement for early termination, it shall be honored.
“In this case, since it is accepted in Article 31 of the lease agreement that a three-month rent will be paid as a penalty in the event of early termination, the tenant's liability for compensation is limited to the agreed three-month reasonable period. Therefore, although the court ruled on a three-month rent for early termination, it was incorrect to also rule on an additional six-month rent based on Article 264 of the Turkish Code of Obligations, which necessitates the reversal of the decision.”
Supreme Court 3rd Civil Chamber 2017/12073 E., 2018/2698 K.
The expert should determine the reasonable period and calculate the lessor’s loss and offset any amount owed to the tenant upon request to reach the final account.
“As a rule, it should be accepted that the leased property remains in the tenant's use until the key is delivered. The tenant must prove with written evidence that the property was vacated by delivering the key to the lessor in accordance with the procedure. Legal key delivery is done by personally delivering the key to the lessor or by depositing it with a notary or the court. In this case, the court should obtain a report from an expert to determine the reasonable period within which the leased property could be re-rented under the terms of the lease agreement. The tenant would be liable for the rent and dues until the evacuation date and for the reasonable period rent and dues from the evacuation date onward. The court should offset the $1000 deposit paid according to the lease agreement from the amount the tenant is liable for and decide accordingly. It is incorrect to base the decision on an incompetent expert report and to rule without considering the tenant's offset request for the deposit.”
Supreme Court 3rd Civil Chamber 2020/10233 E., 2020/7199 K.
Obligations arising from the lease agreement continue for a reasonable period during which the property can be re-rented under similar conditions.
“This matter is regulated in Article 325 of the Turkish Code of Obligations No. 6098: 'If the tenant returns the leased property without complying with the term of the contract or the termination period, the obligations arising from the lease agreement continue for a reasonable period during which the property can be re-rented under similar conditions.' In this case, the plaintiff's loss consists of the rent for the period the property remains vacant from the evacuation date until it can be re-rented under similar conditions. However, the tenant’s liability is limited to the lease term.”
Supreme Court 3rd Civil Chamber 08.06.2021 T., 2021/3369 E., 2021/6221 K.
The lessor's loss is the rent for the period the property remains vacant from the evacuation date until it can be re-rented.
“In the event of early termination, as a rule, the tenant is liable for the rent until the end of the lease term, and the lessor must fulfill their obligation to prevent further loss by making efforts to re-rent the vacated property. Thus, the plaintiff's loss consists of the rent for the period the property remains vacant from the evacuation date until it can be re-rented under similar conditions.”
Supreme Court 6th Civil Chamber 2015/3646 E., 2016/463 K.
Since the reasonable period rent claim is not liquidated, the debtor cannot be awarded enforcement denial compensation for this amount.
“Therefore, the defendants are liable for the unpaid rent debts until the eviction date of 10.09.2014, and after this date, they are liable for the rent for the reasonable period during which the property can be re-rented under similar conditions, as determined by the court through an expert, limited to the end of the lease term. Since the reasonable period rent claim is in the nature of compensation and is not liquidated, the debtor cannot be awarded enforcement denial compensation for this amount. Additionally, since Article 7 of the contract stipulates that 'the security deposit cannot be offset against the rent, and any expenses, rent debts, and damages to the leased property that the tenant is liable to pay at the time of eviction will be deducted from the security deposit and the remainder will be returned,' the security deposit must be offset against the debt…”
Supreme Court 3rd Civil Chamber 2021/3369 E., 2021/6221 K.
If the lessor and the tenant mutually agree to terminate the lease agreement, damages arising from early termination cannot be claimed.
“If the parties terminate the contract by mutual agreement, it cannot be said that the tenant is liable to compensate the lessor for the damage caused by this termination as there is no unjust (early) termination.”
Erzurum Regional Court of Appeal 2nd Civil Chamber 01.06.2022 T. and 2022/977 K.
If it is determined that the property was not used with due care, the tenant is responsible for the rent for the repair period in addition to the reasonable period.
“In the event of early termination, as a rule, the tenant is responsible for the rent and dues until the date of key delivery, and after the key delivery date, according to Article 325 of the Turkish Code of Obligations, for the rent for the reasonable period during which the property can be re-rented under similar conditions. Given that a one-month period was foreseen in the determination file for repairing the damage caused by misuse, the tenant is also responsible for the rent accruing during this restoration period.”
Bursa Regional Court of Appeal 4th Civil Chamber 21.12.2020 T. and 2020/1564 K.
If the leased property is not delivered in a condition suitable for the intended use, the lessor is the culpable party in case of early termination.
“… the lessor is obliged to deliver the leased property in a condition suitable for the intended use specified in the contract and to maintain it in that condition throughout the lease term. The lessor does not fulfill this obligation merely by physical delivery. The lessor must deliver the property in a manner suitable for the tenant's intended purpose. The plaintiff lessor acted negligently by renting out a building that did not have the necessary qualifications to be used as a daycare. It is also understood that the defendant tenant was negligent by not conducting the necessary legal and physical research regarding the qualities and features of the leased property. Therefore, the court should have reduced the compensation for the reasonable period rent based on the parties’ degree of fault rather than completely rejecting the claim.”
Supreme Court 3rd Civil Chamber 2017/5334 E., 2017/17042 K.
If the tenant has a receivable, it will be offset against the receivable arising from early termination.
“… while calculating the receivables of the lessors arising from early termination, it is understood that the rent overpaid by the tenant was offset.”
Supreme Court 3rd Civil Chamber 2022/2117 E., 2022/8400 K.
The reassignment of a civil servant is considered a significant reason.
"If, for any reason, an unbearable situation arises for any party to a lease agreement, which is a type of continuous performance contract, it cannot be expected that this party remains bound by the contract. An example of an unbearable situation within the scope of a significant reason is the reassignment of a tenant who is a civil servant to another city."
Supreme Court 6th Civil Chamber 2015/7331 E., 2015/9163 K.
Frequently Asked Questions
I found a cheaper rental house and want to move into it, what can I do?
If you want to move into the new house immediately, you may have to pay the rent to your current landlord for a reasonable period. You can terminate the lease agreement by adhering to the terms and conditions specified in the lease agreement. However, if the lease is for a fixed term, you must provide notice before the new term begins; if it is for an indefinite term, you must give notice six months in advance.
I handed the key over to the doorman, do I still have to pay the rent?
If the doorman is not the representative of the landlord, you are not considered to have delivered the property. If the landlord does not receive the key from the doorman, your responsibility for the rent and other expenses will continue.
The landlord is asking for rent for the days I didn't live in the house, what should I do?
If you have delivered the key to the landlord, they have the right to request compensation from you for a reasonable period. However, the reasonable period will be subject to judicial review, and each region has a different reasonable period.
I found a tenant for the house, but the landlord did not accept it. Do I still have to pay the rent?
If the prospective tenant you found objectively meets the conditions under which the landlord can lease the property, your responsibility will not continue. However, if this is not the case, your responsibility will continue.
My business failed, and I want to close the shop, do I have to pay rent to the landlord?
You are obliged to pay rent to your current landlord for a reasonable period. However, if you find a tenant for the period after you, your responsibility will end. You can terminate the lease agreement by adhering to the terms and conditions specified in the lease agreement. However, if the lease is for a fixed term, you must provide notice before the new term begins; if it is for an indefinite term, you must give notice six months in advance.
My tenant vacated the house before the lease term ended and is not paying the rent, what should I do?
If your tenant has vacated the leased property and delivered the key to you, they are responsible for paying the rent and other expenses for a reasonable period until a new tenant is found. If they do not fulfill this obligation, you can recover your receivables from the tenant through a lawsuit or enforcement proceedings at the end of the reasonable period. However, if the tenant has not delivered the key, the lease relationship continues, and you have the right to file a lawsuit or initiate enforcement proceedings for each rental period’s rent receivable.
I paid the rent annually, can I get a refund for the period I didn't occupy the property?
Yes, you can get a refund for the rent exceeding the reasonable period.
The landlord is not accepting the key, what should I do?
If the landlord or lessor does not accept the key, delivery can be ensured through the court or a notary. However, in this case, the delivery date of the property is considered the date on which the notification is made to the landlord.
We had included a penalty clause for early termination, but the tenant did not pay. What should I do?
The amount of the penalty clause is important. If it is not considered excessive under normal conditions, the penalty clause will be valid. However, if the clause states that all rent payments become due immediately, such a clause will not be valid.
Do I have the right to refuse to accept the key for early termination? What are the consequences if I do not accept it?
You do not have the explicit right to refuse the key, but you can request its delivery through official channels. In this case, the tenant can ensure the delivery of the key through a notary or the court.
How much is the tenant’s compensation for early termination?
It is not correct to specify a fixed rent amount or figure for this compensation. The compensation will be determined based on the reasonable period. In some places, the reasonable period is 1 month, while in others, it can be more than 3 months. However, the generally accepted period is around 3 months. Nevertheless, it should be emphasized that each case must be evaluated separately.
What to Do If the Tenant Vacates Early?
If the vacation is done at an earlier date without adhering to the lease term, a rent claim for a reasonable period can be made. However, if the tenant vacates by adhering to the terms specified in the lease agreement and the law, there is nothing further to be done.
Is Early Termination Possible Due to Reassignment?
Early termination is always possible. However, if the lease is terminated early without just cause, there may be liability for compensation. A reassignment is considered a significant reason for termination, but compensation due to reassignment requires judicial proceedings.
Do I Have to Pay Compensation If I Vacate Early Due to the Property Being Earthquake Unsafe?
If the property is found to be unsafe for earthquakes, your early vacation is considered a justified termination of the contract, and you are not required to pay any compensation.
What Happens If I Terminate the Lease Because the Property Did Not Receive a Business License?
If there were no issues in obtaining the license when the lease relationship was established or if it had been previously used in this way, the lease can be unilaterally terminated for just cause due to the lessor’s fault. However, if the tenant did not conduct any research or examine the qualities of the leased property, the lease cannot be terminated for just cause. The obligations arising from the lease will continue for a reasonable period due to early termination.
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