Request?
One of the most common disputes in lease agreements concerns the security deposit. In practice,
landlords may sometimes request one month’s rent, two months’ rent, three months’ rent or even a
higher amount as a deposit. However, in residential and roofed workplace leases, a landlord cannot
request an unlimited security deposit.
Under the Turkish Code of Obligations, the security deposit that a landlord may request from a tenant
may not exceed three months’ rent. Security-deposit demands exceeding this limit are not legally
valid.
What Is a Security Deposit?
A security deposit is an amount provided by the tenant to secure the landlord’s rights arising from the
lease relationship. In practice, it is commonly taken as security for possible damage to the leased
property, unpaid rent, common-expense debts or other obligations arising from the lease agreement.
However, the security deposit is not money that the landlord may use freely. The landlord cannot
unilaterally retain the tenant’s deposit unless the relevant legal conditions are satisfied.
What Is the Maximum Security Deposit a Landlord Can Request?
In residential and roofed workplace leases, a landlord may request a security deposit of no more than
three months’ rent. For example, if the monthly rent is TRY 20,000, the maximum security deposit
that may be requested is TRY 60,000.
Requesting a deposit above this amount is contrary to the Turkish Code of Obligations. Accordingly,
demands such as a “six-month deposit,” a “one-year deposit” or an unusually high “security amount”
are legally problematic and invalid to the extent that they exceed the statutory limit in residential and
roofed workplace leases.
Which Leases Are Subject to the Three-Month Deposit Limit?
The three-month security-deposit limit applies particularly to residential leases and roofed workplace
leases. Residential leases include properties used for accommodation, such as houses, apartments
and villas. Roofed workplace leases include enclosed commercial premises such as shops, offices
and stores.
Accordingly, when a lease agreement is concluded for an apartment or a roofed workplace, the
three-month rent limit should be taken into account when determining the amount of the deposit.
What Happens If the Landlord Takes More Than Three Months’ Rent as a Deposit?
If a landlord receives a security deposit exceeding three months’ rent, the excess portion does not
receive legal protection. The tenant may request repayment of the amount exceeding the three-
month limit.
For example, if the monthly rent is TRY 30,000 and the landlord receives TRY 150,000 as a security
deposit, the legal limit is TRY 90,000. The tenant may therefore have the right to request repayment
of the excess TRY 60,000.
In such cases, it is important for the tenant to be able to prove the amount paid through written
evidence, a bank receipt or the lease agreement.
What Happens If the Deposit Is Paid in Cash?
Paying a security deposit in cash may create serious evidentiary problems. If the tenant hands over
the deposit in cash, it may later be difficult to prove that the payment was actually made. For this
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reason, it is safer to make the payment through a bank and state “lease security deposit” in the
payment description.
If the deposit is nevertheless paid in cash, the tenant should obtain a written receipt from the
landlord. The receipt should clearly state the amount of the deposit, date of payment, address of the
leased property and details of the parties.
Should the Deposit Be Paid Into the Landlord’s Account?
Under the Turkish Code of Obligations, where the security is agreed in the form of money, it should
be deposited into a savings account in a manner that prevents withdrawal without the landlord’s
consent. If negotiable instruments are provided as security, they should similarly be deposited with a
bank.
The purpose of this statutory system is to prevent the landlord from using the deposit arbitrarily and
to protect the tenant’s rights. In practice, deposits are frequently paid directly to landlords.
Nevertheless, the system contemplated by law is one in which the security deposit is held under
protection at a bank.
When Must the Landlord Return the Security Deposit?
When the lease agreement ends, the tenant returns the property. If there is no damage beyond
ordinary wear and tear, no unpaid rent and no outstanding common expenses, the deposit should be
returned to the tenant.
If the landlord has brought proceedings or initiated enforcement proceedings against the tenant in
relation to the lease after the agreement ends, return of the deposit may depend on the outcome of
that dispute. However, if the landlord does not notify the bank within three months following
termination of the lease that a lawsuit or enforcement proceeding has been initiated, the bank is
required to release the deposit to the tenant upon the tenant’s request.
In Which Circumstances Can the Landlord Make Deductions From the Deposit?
A landlord may use the security deposit only for justified and provable losses. For example,
deductions may be considered if the tenant has unpaid rent, unpaid common expenses or has
caused damage to the property beyond ordinary use.
Normal wear and tear arising from ordinary use cannot be deducted from the security deposit. Aging
wall paint, flooring worn through normal use, or items such as taps and door handles deteriorating
through ordinary use should be assessed according to the circumstances of each case.
If the landlord makes a deduction from the security deposit, the reason should be explained
specifically and, where possible, supported by evidence such as invoices, photographs, inspection
records or expert reports.
Can the Tenant Treat the Deposit as the Last Month’s Rent?
A common mistake by tenants is to stop paying rent in the final month on the basis that “the deposit
already exists.” As a rule, the security deposit is not automatically a substitute for rent. It is security
for obligations arising from the lease.
Accordingly, unless the parties expressly agree otherwise, the tenant should not unilaterally treat the
final month’s rent as covered by the deposit. In such a situation, the landlord may initiate
enforcement proceedings for unpaid rent or claim that the amount should be set off against the
security deposit.
The safest approach is for the parties to record any set-off arrangement in writing when the lease
ends and to prepare a property handover record.
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Is the Deposit Returned According to the Current Rent Amount?
How the deposit should be returned may depend on how it was defined in the lease. If the security
deposit was stated as a specific monetary amount, the repayment claim will be assessed with
reference to that amount and any applicable legal considerations. If the deposit was defined in terms
such as “two months’ rent,” a dispute may arise at the time of repayment as to whether the current
rental value should be used.
For this reason, when the lease agreement is prepared, the amount, nature, method of payment and
repayment conditions of the deposit should be stated clearly.
What Happens If the Deposit Is Not Written in the Lease Agreement?
If the deposit is not stated in the lease agreement, the tenant must separately prove that a deposit
was paid. For this reason, the security payment should be recorded in the lease or documented
through a bank receipt.
If the amount of the deposit is expressly stated in the lease, the tenant may later rely on that
provision when requesting repayment. However, an alleged cash deposit that is not mentioned in the
contract may create evidentiary difficulties.
What Can a Tenant Do If the Landlord Does Not Return the Deposit?
If the landlord refuses to return the deposit without a justified reason, the tenant may first send a
written notice. If the deposit is still not returned, depending on the nature of the dispute, the tenant
may consider mandatory mediation, enforcement proceedings or litigation.
Because mediation has become mandatory before filing many lawsuits arising from lease
relationships, deposit repayment disputes should also be handled carefully with the applicable
procedural requirements in mind.
What Should Be Considered Regarding the Deposit When Signing a Lease Agreement?
The following points should be considered when regulating a security deposit in a lease agreement:
The amount of the deposit should be stated clearly.
The deposit should not exceed three months’ rent.
Payment should be made through a bank.
The bank transfer description should state “deposit” or “lease security deposit.”
The circumstances in which the deposit may not be returned should be described specifically in
the agreement.
A handover record should be prepared when the property is delivered.
The condition of the property should be recorded by photographs and video.
An inventory of fixtures should be attached to the agreement.
A vacation and return record should also be prepared when the tenant leaves.
Conclusion
In residential and roofed workplace leases, a landlord may request a security deposit of no more than
three months’ rent. Deposit demands exceeding this amount are not legally valid.
A security deposit is not money that a landlord may use arbitrarily; it is security relating to the lease
relationship. If the tenant returns the property in accordance with the agreement, has no outstanding
rent or common-expense debt, and has caused no damage beyond ordinary wear and tear, the
deposit should be returned.
Evidence is extremely important in security-deposit disputes. The lease agreement should therefore
clearly regulate the amount of the deposit, payment method, repayment conditions and condition of
the property at handover. Obtaining legal assistance during the establishment and termination of the
lease and in any deposit-repayment dispute may help prevent loss of rights.
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