Tenants' Rights in Urban Transformation

Tenants' rights in urban transformation; eviction from risky buildings, rent assistance, relocation support, security deposit, business tenants, right to sue, landlord-tenant disputes, and a detailed legal guide under Law No. 6306.

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Why are tenants' rights important in urban transformation?

Although the urban transformation process is often debated in terms of the rights of property owners and contractors, tenants are among those most affected. The designation of a building as a risky structure under Law No. 6306 directly impacts not only the property owners but also the lives of tenants residing in the building, tenants operating businesses, their family members, employees, and commercial owners. Since the eviction and demolition process can begin once the risky structure designation is finalized, the tenant's right to housing, relocation plans, security deposits, lease agreements, business operations, and applications for financial support become crucial.

In urban transformation projects, a tenant's situation is not based on a property right as strong as that of the owner. The tenant is not the owner of the property; they do not hold a real right over the property, but rather a personal right holder based on a lease agreement. However, this does not mean that the tenant is completely unprotected. The tenant has the right to request that the eviction process be carried out in accordance with proper procedure, to apply for rent assistance or relocation support, to claim back rent and deposits paid in advance, to pursue legal remedies against claims of unfair or malicious eviction, and, if it is a business, to take measures to protect its commercial activity.

When evaluating tenants' rights in urban transformation projects, two separate legal regimes must be considered together. The first is the regime concerning risky buildings, eviction, demolition, and financial assistance under Law No. 6306. The second is the rights and obligations arising from lease agreements under the Turkish Code of Obligations. The demolition of a building due to a risky structure may alter the ordinary course of the lease relationship between the tenant and the landlord; however, the tenant's rights regarding security deposit, advance rent, damages, notification, and good faith principles must be evaluated separately.

The Legal Position of the Tenant During the Risky Building Process

The urban transformation process often begins with the identification of risky buildings. Risk assessment refers to the technical and administrative determination that a building has reached the end of its economic lifespan or poses a risk of collapse or severe damage. Once this assessment is completed and finalized, the evacuation and demolition of the building become the focus. According to sources from the Ministry of Environment, Urbanization and Climate Change, the risk assessment process progresses through the following stages: risk assessment, notification to the land registry, objections, finalization, evacuation, and demolition.

The tenant is not the initiator of this process. As a rule, the assessment of a building's risk is carried out by the owner or legal representative; however, the administration may also have the assessment carried out ex officio in certain circumstances. The tenant is not the primary person applying for a risk assessment, unlike the owner. Nevertheless, the outcome of the risk assessment directly affects the tenant, as the residence or business premises they operate may be subject to eviction and demolition.

Therefore, the first thing a tenant should do is find out whether the building has actually been identified as a risky structure under Law No. 6306. It is not enough for the apartment management, contractor, or owner to simply say "the building will undergo urban transformation." The tenant should request information regarding the risky structure report, administrative letter, eviction notice, demolition schedule, official record posted on the building, local announcement, and any e-Government notifications. This is because a genuine risky structure transformation process must be distinguished from abstract claims of transformation made solely to increase rent or evict tenants.

Can a tenant object to a building risk assessment report?

One of the most frequently asked questions regarding urban transformation is whether a tenant can appeal a risky building report. Under Law No. 6306, the right to technically appeal against a risky building assessment is primarily granted to building owners and their legal representatives. Official statements indicate that appeals against risky building assessments can only be made by building owners or their legal representatives.

Therefore, as a rule, a tenant cannot use the technical objection route to the determination of a risky building as if they were the owner. A tenant's residence or business operation in the property does not grant them the status of owner. However, this does not mean that the tenant has no legal recourse. The tenant can also pursue legal remedies regarding eviction proceedings, rights arising from the lease agreement, security deposit claims, advance rent refunds, relocation expenses, damages to the business premises, or claims of bad faith.

In particular, tenants can defend themselves against eviction requests in cases where the risky building process has not actually begun, there is no report, no demolition order, or where the landlord is only using "urban transformation" as a pretext to evict the tenant. Conversely, if the risky building decision has been duly finalized, the tenant's insistence on remaining in the building may not be protected on grounds of public safety.

What should a tenant do when a building is deemed at risk?

Once the building is deemed risky, the evacuation and demolition process begins. At this stage, the most important issue for the tenant is to determine whether the process is genuine and in accordance with proper procedures. The tenant should request documents regarding the risky building decision from the owner or building management; and if possible, obtain information from the relevant authority regarding the evacuation and demolition period.

In cases where a building has been definitively declared risky, a tenant's defense of "my lease agreement is still valid, therefore I will not leave" is often insufficient. This is because eviction is not merely a private law claim based on the landlord-tenant relationship; it is the result of an administrative process carried out for the purpose of protecting life and property. Continuing to use a building definitively designated as risky poses a risk not only to the tenant but also to the safety of those in the surrounding area.

At this stage, the tenant should: finalize the eviction date, begin searching for a new residence or business premises, review the terms of rental assistance or relocation support, request the deposit and advance rent in writing, identify fixtures and fittings during the move, and, if it is a business premises, plan the processes for changing the tax registration certificate and business address. If possible, the tenant should establish a written agreement with the landlord regarding the eviction date and financial rights.

Is rent assistance provided to tenants in urban transformation projects?

In urban transformation projects, tenants can benefit from financial support under certain conditions. According to official sources, tenants or business owners residing in buildings within the project area that are vacated through agreements may receive a one-time rental assistance payment equal to twice the monthly rent determined by the Ministry. The same source states that different rates are foreseen for holders of limited property rights, while property owners may receive monthly rental assistance.

The key distinction here is that rental assistance for property owners is mostly in the form of monthly payments; in risky buildings outside of risky areas, the assistance period for property owners is specified as 18 months. In risky and reserve building areas, the rental assistance period can be determined by the relevant institution, not exceeding 48 months. For tenants, the practice is mostly a lump-sum payment, taking into account relocation expenses.

The İzmir Provincial Directorate of Environment, Urbanization and Climate Change's question-and-answer section on urban transformation states that tenants may receive a one-time rent subsidy to cover relocation expenses, and that tenants wishing to purchase housing can benefit from interest rate support for loans obtained from banks that have signed protocols with the Ministry.

Therefore, tenants should not act on the assumption that "I am not the landlord, I cannot receive any support." However, the assistance provided to the tenant is not of the same nature as long-term monthly rent assistance provided to the landlord. For the tenant, the support is more geared towards facilitating the moving and transition process.

Where do tenants apply for rental assistance?

Applications for rental assistance are submitted to the competent authority in the province where the risky building is located. In practice, the application authority may be the Provincial Directorate of Environment, Urbanization and Climate Change, the Urban Transformation Directorate, or, if authority has been delegated, the relevant municipality/administration in the province where the property is located. Official sources state that rental assistance applications should be submitted to the relevant institution in risky areas or reserve building areas, and to the administration in risky buildings; applications must be made within one year from the date of evacuation or within three months from the date the risky building is demolished.

This timeframe is extremely important for the tenant. If the tenant does not apply for financial support for a long period after moving out, they may lose their right to it. The date from which the application should be made is linked to the eviction date, the demolition date, and the administration's system records. Therefore, the tenant should start gathering the necessary documents on the day they move out or at the latest shortly thereafter.

Applications typically require a photocopy of the identity card, a document proving the tenant resides in a risky building, information on both the old and new addresses, eviction information, bank account information, and information about the risky building. The İzmir Provincial Directorate's Q&A section lists documents such as a photocopy of the national identity card, utility bills registered in the tenant's name, a population registration certificate showing residency in a risky building, and a population registration certificate showing the new address for the vacated property, for residential tenants.

What conditions must a tenant meet to receive rental assistance?

One of the most important conditions for a tenant to benefit from rental assistance or relocation support is that they must actually reside or operate a business in the property that has been identified as a risky building. Official statements indicate that for rental assistance applications, eligible individuals must have been residing in the risky building prior to the risky building approval date; documents such as utility bills or address information covering the period prior to the evacuation date of the risky building are also important.

This condition is important in practice to prevent fraudulent or subsequently created rental agreements. After a building is deemed risky, it is legally risky and administratively refusable for someone to attempt to obtain tenant assistance by retroactively arranging a rental agreement. The administration can verify whether the tenant is actually residing there through address records, billing information, tax certificates, eviction information, and system records.

For tenants, the following documents may serve as proof: rental agreement, address-based population registration certificate, electricity, water, gas, and internet bills, apartment maintenance fee receipts, bank rent payment statements, tax certificate for businesses, inspection report, chamber of commerce registration, municipal license, social security registration certificate, and address change documents after eviction. These documents are important both for rent assistance applications and in resolving potential disputes with the landlord.

The Rights of Commercial Tenants in Urban Transformation

In urban transformation projects, business tenants face different and often more severe consequences than residential tenants. The eviction of a business due to a structurally unsound building doesn't just mean physical relocation. It affects the customer base, tax registration, licenses, employees, inventory, signage, advertising value, location advantage, and business continuity.

Official sources state that tenants or holders of limited property rights operating businesses in risky buildings can submit documents such as photocopies of their identity cards, tax certificates, and current tax certificates confirming the evacuation of the business premises when applying for rental assistance. It has been announced that in places like Istanbul, Izmir, and Bursa, the application authority is the Infrastructure and Urban Transformation Directorate, while in other provinces it is the Provincial Directorate of Environment and Urbanization.

A business tenant should not rely solely on Ministry support. Rights arising from the lease agreement with the landlord must also be examined. For example, a business tenant may request a reasonable time for relocation, demand the return of the deposit and advance rent, review the provisions in the contract regarding special renovation and decoration costs, and discuss the damages incurred if the eviction date is set suddenly. However, if the building is definitively deemed risky, the claim to continue operating the business may be restricted on grounds of public safety.

Can the tenant get their security deposit back?

One of the most fundamental private law rights of a tenant evicted due to urban transformation is the return of their security deposit. The deposit is taken to secure against any damage the tenant may cause to the property during relocation or any outstanding rent. The fact that a building is slated for demolition due to structural risks does not automatically mean the landlord can retain the deposit.

When vacating the property, the tenant must document the current condition of the property with photographs and videos. The handover of keys should be documented in writing, and if possible, the last meter readings, outstanding maintenance fees, unpaid rent, and the condition of the contents should be recorded. The landlord can only deduct from the security deposit for actual and verifiable damages or unpaid debts. It is legally indefensible to deduct the entire security deposit from the tenant on the grounds that the building will be demolished.

If rent has been paid in advance, the tenant may request a refund for the unused period. For example, if a tenant paid six months' rent in advance but was forced to move out in the second month due to the evacuation of a building deemed risky, a refund for the remaining period becomes relevant. In this case, the specific contract terms, the evacuation date, the agreement between the parties, and the date on which the risky building process was finalized must be considered together.

Can a tenant be immediately evicted on the grounds of urban transformation?

The landlord's statement that "the building will undergo urban transformation" does not, by itself, mean that the tenant must immediately vacate the premises. Unless there is a genuine risky building process underway, the landlord must act in accordance with the provisions of the Turkish Code of Obligations. Eviction for the purpose of reconstruction or renovation is subject to specific conditions in rental law. According to Article 350/2 of the Turkish Code of Obligations, substantial repair, expansion, or alteration must be necessary for the reconstruction or renovation of the leased property, and the use of the property must become impossible during these works; in this case, the landlord can terminate the lease agreement by filing a lawsuit within the legally prescribed periods.

This distinction is crucial in practice. If the building has a final decision deeming it a risky structure under Law No. 6306, eviction is linked to an administrative process. However, if the owner simply says "I will carry out renovations" or "I have reached an agreement with a contractor," the tenant can assert their protections under rental law. The owner cannot forcibly evict the tenant, cut off their electricity or water, change the door, or remove their belongings without the legally required conditions being met.

In such cases, the tenant should request written documentation and not vacate the property based on verbal pressure. Especially during periods of high rent increases, some eviction requests may not be genuinely aimed at urban transformation. Therefore, the safest course of action for the tenant is to not proceed without seeing concrete evidence such as a risk assessment certificate, demolition order, eviction notice, or court decision.

Does an evicted tenant have priority in re-renting?

In terms of rental law, a tenant evicted due to reconstruction or renovation may have priority in re-renting the property in certain circumstances. Within the Turkish Code of Obligations system, there are protective mechanisms such as offering the former tenant priority in renting the property based on its new condition and with a new rental price. However, for this right to be applied, the specific circumstances of the case must be examined to determine the legal basis for the eviction, whether the landlord obtained the eviction through legal action, whether the property was actually rebuilt, and whether the former tenant was notified.

When a building is completely demolished as part of urban transformation and a new independent unit emerges, it cannot be said that the former tenant automatically has the right to rent the same space at the old rent. Specifically, eviction cases due to risky structures under Law No. 6306 and eviction cases due to reconstruction and redevelopment under Article 350 of the Turkish Code of Obligations may be based on different legal grounds. Therefore, the former tenant's claim for priority or compensation in the new building should be evaluated separately according to the specific form of eviction.

If a tenant wishes to protect their rights during eviction, they should enter into a written agreement with the landlord. For example, the agreement could clearly specify that the tenant will receive a priority rental offer once the new building is completed, how the new rent will be determined, and, if it's a business, provisions regarding the protection of the signage and customer base. Otherwise, proving verbal promises becomes difficult.

How should the notification to the tenant be prepared?

In urban transformation projects, notification to tenants is crucial for the smooth progress of the process. In the process of risky buildings, eviction and demolition notices often proceed through administrative announcements, posted notices on the building, and notifications to property owners. However, informing tenants actually residing in the building a reasonable time in advance is necessary for both fairness and the security of the process.

Pressuring a tenant to vacate the premises solely through a notice posted at the last minute in the building's entrance can lead to serious problems in practice. Finding a new home or workplace, organizing the move, dealing with children's school arrangements, business licenses, employees, and commercial activities all require time. Therefore, landlords providing written notice to tenants, clearly stating the eviction date, and sharing documents related to the risky building process will reduce disputes.

From the tenant's perspective, notifications should be obtained in writing, and verbal discussions should be recorded via message, email, or minutes if possible. The eviction date, key handover, deposit refund, advance rent refund, and outstanding dues and utility bills should be clearly defined.

Can a tenant claim compensation due to urban transformation?

Whether a tenant can claim compensation depends on the reason for the eviction and how the process was conducted. If the building was deemed a risky structure and subsequently evacuated and demolished due to public safety concerns, it may not be possible for the tenant to claim a large amount of compensation from the landlord simply for being evicted. This is because the eviction in this case stemmed from the building's risky structure status, not from the landlord's arbitrary actions.

However, compensation may arise if the landlord has acted in bad faith, made false statements to the tenant, evicted the tenant under the pretext of a building transformation even though there is no risky building process, unjustly withheld the deposit, failed to pay the advance rent, not given a reasonable time for relocation, or has taken unlawful actions that cause harm to a business tenant.

For business tenants, the items of damage can be more complex. Items such as relocation expenses, renovation costs, customer loss, license changes, signage costs, inventory and equipment transportation costs, employee losses, and business interruption must be proven with concrete evidence. However, for these claims to be accepted, the illegality, the damage, and the causal link must be clearly demonstrated.

The Most Common Mistakes Tenants Make

The biggest mistake tenants make during urban transformation is acting solely on verbal information. Statements like "The building is going to be demolished," "The contractor has arrived," or "The landlord is telling us to leave" are insufficient on their own. Tenants must absolutely see the official documents regarding the risky building process.

The second mistake is missing the deadline to apply for rental assistance. Official sources state that the application period is one year from the date of eviction or three months from the date the risky building is demolished. Therefore, tenants should prepare their application documents promptly after moving out.

The third mistake is failing to secure the deposit and advance rent in writing. When the tenant hands over the keys, a written record must be prepared, and the deposit and any unused rent arrears must be requested in writing.

The fourth mistake is that business tenants fail to plan the processes of obtaining tax certificates, address changes, licenses, and commercial registration in time. The closure of a business or a change of address due to urban transformation also brings with it administrative and financial obligations.

The fifth mistake is confusing the risky building process with the normal eviction process. While the administrative eviction-demolition process comes into play in the case of a finalized risky building decision, the eviction provisions of rental law only apply in cases involving claims of renovation or reconstruction.

Practical Tips for Protecting Tenants' Rights in Urban Transformation Projects

The tenant should request official documents as soon as they learn whether the building is structurally unsound. The risk assessment report, eviction notice, demolition schedule, and administrative documents should be examined. Actions should not be taken solely based on the contractor's or owner's statement.

The tenant must clarify all payment terms before moving in. Rent, maintenance fees, utility bills, security deposit, rent in advance, and key handover should be documented in writing. The property's current condition should be recorded with photos and videos.

Tenants should gather all necessary documents in a timely manner to apply for rental assistance or relocation support. Documents such as address records, utility bills, rental agreements, bank statements, new address information, and business tax registration certificates should be kept.

Business tenants should plan ahead for processes such as obtaining a new address, license, registering with the tax office, social security, municipality, chamber of commerce, signage, and customer information to ensure uninterrupted business operations.

If an agreement is to be made with the landlord, this agreement must be in writing. The eviction date, deposit refund, relocation assistance, advance rent refund, and priority for renting in the new building (if applicable) should be clearly stipulated.

Conclusion

In urban transformation projects, tenants' rights, while often not as visible as those of property owners, are extremely important. Because a tenant is not the owner of the property, they may not have the same rights as an owner to object to a risk assessment; however, they do have the right to demand that the eviction process be conducted properly, to apply for financial assistance, to claim deposits and advance rent, to protect their business operations, and to defend themselves against malicious or unlawful eviction attempts.

Under Law No. 6306, tenants or business owners can receive one-time rental assistance under certain conditions. The application period, required documents, and application authority should be carefully monitored. Official sources clearly state that assistance for tenants can be provided in a single payment and that application deadlines are linked to eviction/demolition dates.

The best strategy for tenants is not to passively wait for the process to unfold; it involves requesting risk assessment documents, clarifying the eviction date, securing written guarantees for financial rights, and preparing application documents on time. Especially for business tenants, urban transformation requires comprehensive legal planning, encompassing not only relocation but also the continuation of commercial activity, customer base, licensing, and tax processes.

In conclusion, in urban transformation projects, tenants' rights should be protected by considering both the financial support provisions of Law No. 6306 and the provisions of the lease agreement in the Turkish Code of Obligations. If there is a genuine risk assessment decision for a building, it may often be legally impossible for the tenant to insist on remaining in the building; however, this does not negate the tenant's rights to a deposit, advance rent, relocation assistance, reasonable notice, compensation for damages to the business premises, and legal protection against malicious actions.