Tenancy Law Series · 1 of 5
Leasing a textile workshop or factory involves a long-term investment as well as a rent commitment. The agreement should address the permitted activity, machinery installation, infrastructure, alterations and the arrangements for leaving the premises.
Turkish law contains a common protective framework for residential and roofed workplace leases. Commercial use does not create unlimited freedom to exclude those protections. Whether the premises qualify as a roofed workplace, an ordinary lease or another type of arrangement must be assessed from the actual property and transaction.
1. Residential and roofed workplace leases: key points
Rent increases
For ordinary renewal increases within Article 344, agreements are valid only up to the preceding rental year's change in the consumer price index based on twelve-month averages. This protection also applies to roofed workplaces; it is incorrect to say that textile landlords and tenants can freely agree any increase. Separate rules apply to rent determination after five years and to foreign-currency arrangements. The temporary residential 25 per cent restriction should not be treated as a permanent rule for workplace leases.
Alterations
Machinery, electricity, water and structural works often require consent and technical approvals. Under Article 321, a tenant can make alterations with the landlord's written consent. Agree separately on cost, restoration and any compensation for improvements; consent to the works is not automatically a promise to reimburse them.
Subletting and transfer
Subletting or transferring use of a roofed workplace requires the landlord's written consent under Article 322. Transfer of the lease itself is a different transaction under Article 323: for workplace leases, consent cannot be withheld without just cause, and the outgoing tenant may remain jointly liable with the transferee until the contract ends, for at most two years. A subcontract manufacturer merely providing services on site is not automatically a subtenant; examine actual possession and use.
2. What should the agreement cover?
Permitted use
Describe the intended production, garment-making, embroidery, printing, washing or storage activities accurately. A general reference to commercial activity may leave uncertainty about what was agreed. Provide for foreseeable changes, subject to landlord consent where required and the necessary regulatory permissions. A private lease clause cannot replace a manufacturing, environmental or workplace licence.
Alterations and infrastructure
Electric capacity, three-phase supply, ventilation, water, wastewater and machinery mounting should be reviewed before signing. Address the following matters in a written schedule:
- Which works require written landlord consent and public approvals?
- Who designs, carries out and pays for each change?
- Will particular installations be removed or retained on departure?
- Who is responsible for an agreed electricity-capacity upgrade?
- How will anchoring into floors, walls or the structure be approved?
- What defects, access restrictions and operating limits exist at delivery?
Article 321 distinguishes restoration from compensation. A landlord who consents to works cannot demand restoration unless this was agreed in writing. Unless otherwise agreed in writing, the tenant cannot demand the value increase resulting from consented alterations. Draft the protocol with those rules in mind.
Rent and increase formula
State the amount, payment date, applicable taxes and a clear lawful increase mechanism. A fixed percentage or a producer-price-index formula is not automatically enforceable to the extent that it exceeds the applicable Article 344 limit. If no valid increase is agreed, the statutory judicial determination framework remains relevant; the landlord cannot simply impose any figure.
After five years, the separate rent-determination rules can involve comparable rents, the condition of the premises, the index and equity. They should not be confused with an unrestricted annual increase or with automatic eviction.
Term and renewal
Plan the term against machinery and fit-out expenditure, but do not assume that a short fixed term lets the landlord end a roofed workplace lease simply because the date expires. Article 347 provides for statutory renewal where the tenant does not give the required notice. A landlord's statutory termination grounds and the rules following the ten-year extension period must be assessed separately.
Any negotiated early-exit right or additional renewal arrangement should be clear and consistent with mandatory tenant protection. Commercial planning remains necessary even where the law provides renewal protection.
Security deposit
Under Article 342, agreed security in residential and roofed workplace leases cannot exceed three months' rent. Where money or negotiable instruments are used, the statutory bank-deposit arrangements and release conditions must also be considered. A contractual demand above the cap requires legal assessment; it should not be accepted merely because the tenant is a company.
3. Risks faced by textile tenants
- Investment and term: coordinate fit-out spending with the term, statutory renewal and properly drafted exit provisions, rather than treating the expiry date as automatic landlord termination.
- Alteration costs: attach an agreed protocol specifying consent, expenditure, ownership, removal and restoration.
- Restricted use: include the planned production processes while checking their legal and technical feasibility.
- Unclear increases: define a mechanism within the mandatory rules and preserve calculation records.
- Insufficient infrastructure: conduct a technical review before delivery and allocate agreed upgrade responsibilities.
- Unauthorised third-party use: distinguish subletting, transfer of use, lease transfer and ordinary subcontracting; obtain the consent required for the actual arrangement.
Chimneys, ventilation, wastewater, fire safety and operating permissions may require approval from the competent authorities. Do not rely solely on a landlord's assurance that the building is suitable. Identify who will obtain each permission and what happens if the intended lawful use cannot be achieved. Termination is not an automatic consequence of every breach; applicable notice and cure requirements also matter.
4. Delivery record and technical inspection
A signed delivery record with dated photographs can help establish the condition of the premises. Its absence does not make every later dispute impossible to resolve, but can make proof more difficult. Record electricity and transformer capacity, pipes, mounting points, floors, the roof and facade, fire exits and safety systems.
Before anchoring heavy machinery, obtain an appropriate technical assessment of the floor and structural capacity. The lease itself is not a substitute for engineering approval.
- Document electrical panels and available power, and compare them with equipment requirements.
- Record any gas or fuel systems, capacities, connections and relevant permissions.
- Test water supply and wastewater connections, especially for dyeing or washing.
- Check roof insulation, damp and temperature conditions affecting textiles.
- Review fire protection under the classification actually applicable to the building, materials and production process; not every textile premises has an identical risk category.
5. Leaving early and returning the premises
Order volumes, relocation or closure may require a change of premises. Under Article 325, a tenant returning the property without observing the contractual term or termination period normally remains liable for a reasonable period in which it could be relet on similar terms. This is not automatically all rent for the remaining fixed term.
Liability can end earlier if the tenant provides a financially capable replacement tenant whom the landlord can reasonably be expected to accept and who is ready to take over the lease. The landlord must also deduct saved expenses and relevant benefits obtained or deliberately forgone. Proof of return, keys and replacement proposals matters.
The agreement can address a properly drafted early-exit notice, business closure, an approved transfer and the consequences of specified extraordinary events. A fire, flood or earthquake does not invariably terminate every lease; the condition of the premises and the applicable contractual and statutory rules must be assessed.
Written undertaking to vacate
Do not sign a blank or undated undertaking without understanding its consequences. Article 352 requires a written undertaking given after delivery of the premises for a specified departure date. Enforcement or a claim based on it is subject to the statutory one-month period from that date and the other applicable conditions. It is inaccurate to say that any such document lets a landlord evict whenever they choose. A disputed document, its completion and the actual signing circumstances require prompt assessment.
Sources and series
Turkish Code of Obligations No. 6098: Articles 301, 321–325, 339–344, 347–348 and 352.
Next: Rent increases and the CPI limit
General information: This article explains Turkish law. The classification of the premises, documents, permissions and dates must be assessed individually. The Turkish statutory texts govern; this article does not replace advice on the particular lease.