Tenancy relations are an important and sensitive issue for both tenants and landlords. However, from time to time, disputes may arise between tenants and landlords. Such disputes may arise more commonly, especially in cases where lease agreements expire or the tenant is in arrears in paying rent to the landlord. Recently, rent disputes have also arisen due to the limitation imposed on the rate of rent increase. In this article, we will focus on the resolution of disputes arising out of lease relations and discuss how the “Mandatory Mediation” system implemented in Turkey contributes to such disputes.
1.Sources of Disputes in Lease Relations
Disputes arising out of lease relations are generally caused by the following reasons:
a) Non-Payment of Rent: Non-payment or underpayment of rent by tenants on time is a common problem between landlords and tenants.
b) Breach of Lease Agreement: When tenants or landlords do not fulfil their commitments in the lease agreement, disputes may arise due to breach of contract.
c) Return of Deposit: The return of the deposit following the expiry of the tenancy agreement often leads to disputes. Landlords may claim that tenants did not leave the property undamaged, while tenants may feel that their deposits were not returned as they were entitled to.
d) Limitation on Rent Increase Rate: With the provisional article added to the Turkish Code of Obligations, an upper limit of 25 per cent has been introduced to the contracts regarding the annual increase of the housing rent in the lease contracts. This limit causes disputes between tenants and landlords. Landlords who think that the rental price is low compared to the market are not satisfied with this limitation and demand an increase more than the determined rate from tenants. Tenants do not want to pay high rents and do not want to leave their homes.
2.Compulsory Mediation System
The mandatory mediation system has been made compulsory to resolve disputes arising from lease relations. This system stipulates the requirement to resolve the dispute through mediation before going to court. In addition, this allows lease disputes to be resolved faster and at less cost, while relieving the court system. Here are the advantages of mandatory mediation in lease relations:
a) Fast Resolution: The mediation process is faster than the court process. This allows the parties to resolve their disputes more quickly.
b) Less Cost: Court processes are usually expensive. Mandatory mediation offers a more economical solution for the parties.
c) Less Stress: While court proceedings often create tension between the parties, the mediation process can provide a less stressful environment.
d) Better Communication: Mediation can encourage communication between the parties and create a better chance of settlement.
e) More Flexible Solution: The parties have the freedom to find their own solution in the mediation process. This provides a more personalised solution than in court.
f) Relief for the Court System: Mandatory mediation can ease the workload of the court system and help to process more serious cases more quickly.
3.Mandatory Mediation Process
In Turkey, the mandatory mediation process for the resolution of disputes arising from lease relations includes the following steps
a) Application: One of the parties applies in accordance with the Mediation Law to initiate the mediation process.
b) Mediator Appointment: An authorised mediator is appointed upon application.
c) Mediation Session: The parties try to resolve their dispute in the mediation session. The mediator guides the parties and helps them to reach a settlement.
d) Conciliation: If the parties reach an agreement at the end of the mediation process, a settlement report is issued and this settlement is finalised by the court.
e) Litigation Process: Parties who cannot reach an agreement in mediation may apply to the court with the minutes of disagreement issued by the mediator.
4.Conclusion
The mandatory mediation system in Turkey for the settlement of disputes arising from lease relations helps to resolve disputes between the parties in a fast, economical and effective manner. This system reduces the burden of court proceedings and provides fairer and more satisfactory solutions between the parties. Parties who have disputes in lease relations can find a better solution by taking advantage of the advantages of the mandatory mediation process.