How To Rent Your Property in Turkey?
In the previous two decades, Turkey’s real estate market has transformed into a high-performing business fueled by the brightest and best in the industry. Buyers may now access a wide inventory of buy-to-let assets, which rivals the modernity of other foreign markets. If you do it right, renting out property in Turkey may bring in a lot of money. Let’s have a look at how to properly become a landlord in Turkey if you’re thinking about it. The first step is to become acquainted with Turkish tenancy legislation.
If you need legal aid, our law firm in Turkey and expert Turkish lawyers can assist you.
Here’s a step-by-step guide to renting out your property and being tax compliant. Due to the devaluation of the Turkish currency and attractive incentives for investors, Turkey has been a property hotspot in recent years, particularly in the real estate market.
There are several things you should know whether you want to make a buy-to-let investment or rent out your property in Turkey as a vacation home or year-round for a regular income.
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Legal Obligations When Renting Out Property in Turkey
Long-Term Property Rentals in Turkey
If you want to rent out your property for an extended period of time and are unfamiliar with the rules or the language, you should consult a Turkish lawyer to help you every step of the way, especially when drafting a contract.
Making verbal agreements as an assurance of regular rent payments is not a good idea. You may not want to draft an agreement and save cash by not employing a lawyer, but if you have a tenant problem, you will have a difficult time evicting them without legal support. Make sure to notarize the agreement after you’ve finished it so that all parties can fully understand their duties.
The amount of money you will make depends on where you buy property. Rental costs for a fully furnished apartment in the vacation beach town of Altinkum, for example, range from 800 to 1200 Turkish lira per month, but go north to Istanbul, Turkey’s most costly city, and expect to pay 3000 Turkish lira and more.
In the event of damages, it’s also customary for the tenant to pay a month’s deposit, and in some circumstances, they may pay six months in advance, saving the landlord the bother of pursuing money monthly.
The Turkish legislation stipulates that if the rental payment is 500 Turkish lira or more per month, it must be made by bank transfer to ensure a paper trail. If their employer is paying for their accommodations or if they want to recuperate rent for tax purposes, some tenants will ask for a receipt.
Because the procedure of renting out a home in Turkey for the long term is so complicated, we recommend consulting a lawyer for the most up-to-date legal information on becoming a long-term landlord.
While many Turkish folks don’t bother with contracts, it’s also important to keep in mind that if you take this way and do not know your tenants personally, you may find yourself with a problem.
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Short-Terms Property Rentals in Turkey
The Turkish government revised the “Identity Declaration Law” in the second part of 2016. Anyone renting out their house for the holidays must now register with the GIYKIMBIL system and input the names of everyone who will be staying there. It’s all part of a larger anti-terrorism strategy.
To do so, owners need to go to their local police station, which will provide free access to their software. Legally, the person who signs for the password is liable for submitting names. If your property in Turkey and renters are managed by a management firm, they should take on this responsibility.
They’ll also need to prove that they’re managing the property on your behalf by submitting evidence of identification and a copy of your signed agreement.
Anyone who leases your property in Turkey, whether for one night or two weeks, must have their information recorded into the system. If you or your manager fail to do so, you will be fined 700 Turkish lira each day for not declaring occupants.
All identities will be checked for criminal records, and the police reserve the right to monitor your property and chat with your renters. You may join up right away if you are a foreigner with a Turkish identity or work permit in Turkey; but, if you do not have either of these, you will need to create a business in Turkey, which any respectable accountant can do for a nominal fee.
Paying Tax: Rental income, whether short or long-term, must be reported to the IRS. The good news is that if you set up a corporation to sign up for the GIYKIMBIL system, you may deduct the cost of utilities like power, water, and internet. The Turkish Tax Office has produced a full-length English handbook to help foreign landlords navigate the system, but you may also hire an accountant to do it for you.
Other Aspects of Renting out Property in Turkey
Marketing is Crucial When Renting Your Property in Turkey
Without a doubt, any prospective landlord should brush up on their marketing skills, especially if they are promoting their home in Turkey as a short-term vacation rental. Make use of free advertising platforms and encourage relatives and friends to help spread the news.
To let people know that your property is available for rent, use regional community organizations on Facebook or other social media platforms, and ask past holiday tenants for feedback. The marketing possibilities are boundless, and savvy investors will more than makeup for their time.
Location is Everything When Renting Your Property in Turkey
Making a buy-to-let investment necessitates a thorough examination of regions to determine which have the potential for a high rental return. Places in Turkey have an established track record, and it’s clear that each one has its own set of advantages that will decide your success. The following resorts and towns are popular buy-to-let destinations:
Istanbul: As Turkey’s largest city, Istanbul serves as a significant center for business, education, tourism, and finance, resulting in increased demand for long-term rental homes. If the home is in a touristy region, you may be able to switch to short-term rentals if desired. Istanbul has been changed by a recent construction binge that has added new flats and residences to the large portfolio, so the options are endless. Shops, residences, workplaces, and recreational facilities are all clustered together in all-inclusive communities to create an ambiance comparable to that of a small village.
The Bodrum Peninsula is a top-performing tourism region, with an airport that serves both domestic and foreign airline companies. Although the income from a week’s vacation rental typically surpasses the income from a month’s rent, demand is mostly restricted from May to October, when the tourism season begins and all of the major airlines restart flights to Turkey. Since its entrance into the Turkish Riviera with a state-of-the-art marina, the Yalikavak area, in particular, has taken off.
Fethiye Region: This location has long been popular with tourists, particularly British ones. The reasons for this are numerous, but easy access to Dalaman airport and breathtaking natural scenery are two of the most important factors. Tourists choose the resorts of Calis Beach, Hisaronu, and Oludeniz, however, there is plenty of real estate for sale or rent in the town center as well.
Antalya Region comprises the smaller resorts of Side, Kemer, Kalkan, and Kas, as well as Belek, Turkey’s golfing capital, and Kalkan, which is known for its luxury villa rentals, in addition to the main city core. Further east, the beach resort of Alanya attracts a large number of East Europeans, as well as Russians and Brits.
What about Airbnb? Despite popular belief that Airbnb is illegal in Turkey, which is based on police raids on unregistered houses, it is legal and safe as long as you pay taxes. If you earn more than TL 500 per month on your property through the platform as a landlord, you must meet your legal duties as a taxpayer.
Should You Use a Rental Management Company When Renting Your Property in Turkey?
If you are not planning on staying in Turkey permanently, you might consider hiring a rental management firm to keep an eye on your home and manage your affairs. Many of them will also actively advertise your house to a potential buyer or tenant.
Of course, the disadvantage is that it will reduce your revenue. Shop around to compare the costs that each firm has to offer since they can range from one month’s rental to a percentage of monthly revenue. There is no need to use the services of a firm if you reside continuously in the same town as your rental home.
The Best Property for a Buy-To-Let Investment in Turkey
If you’re looking for buy-to-let property in Turkey, the features, amenities, and facilities of any home may go a long way toward promoting the property. In tourist destinations, a property near the beach, restaurants, stores, and transportation links, for example, will be in more demand than properties off the beaten path. Internet connectivity, as well as air conditioning and recreational amenities, are naturally in high demand among tenants.
How can you stay up to date on current affairs and new laws & updates about property rental in Turkey?
InterNations is active in Turkey’s major cities, including Istanbul, Ankara, and Bodrum. They are one of the world’s largest ex-pat groups, with branches in many different countries. They cover jobs, business, and professional relationships for people who are working and in business, in addition to social changes. Many expatriates have found that the InterNations App has aided them in settling into their new home, making new friends, and staying up to speed on local activities, updates, and news.
Signing up for related news apps and email subscriptions, as well as joining relevant WhatsApp or Facebook groups, can all help. However, always check and verify the news on social media platforms yourself, as people tend to share a lot of information that is either false or misinterpreted.
Hurriyetdailynews.com and Dailysabah.com, both of which offer an English version, are good dependable news sources. There are also websites like expat.com that allow you to ask any queries you have that fellow ex-pats in the country/city can answer for you.
Property Management Options When Renting Your Property in Turkey
If the notion of maintaining the property yourself seems like too much work, and keeping up with current residential and real estate news makes you nervous and confused, there’s always the alternative of hiring a property management company to do it for you.
Companies that specialize in short-term rentals and Airbnbs, such as missafir.com, can be found. Although they charge a fee for their services, it would be in their best interests for you to benefit. Some businesses also assist with listings, pictures, and presentations, as well as cleaning and equipment maintenance. All of this can be difficult if you don’t speak the language or don’t know someone who does. One of the keys to success in this area is having the appropriate contacts, which these firms almost always have.
Final Thoughts: Property Rent in Turkey
In conclusion, as a landlord in Turkey, you must meet your legal duties as a taxpayer, which means that if you make more than 500 TL per month from your property, you must report this income and claim back any business-related expenses on your tax returns.
You should have little trouble starting up your property investment firm as long as you are aware of and remain on top of government changes to real estate law and policy, which occur frequently and often unexpectedly.
If you have any more questions on how to property rent in Turkey, feel free to contact us.