Renting out real estate in Turkey
In recent years, the Turkish real estate market has attracted close attention from foreign investors. This interest in buying houses and apartments in Turkey is not surprising, given its picturesque nature and favorable climate, special original atmosphere, unique attractions and decent standard of living.
And the warm welcome from local residents makes the eastern country even more tempting to move to. In addition, optimal property prices and stable rental demand guarantee benefits from investment in the housing sector. The rental business today is one of the most popular ways among foreign apartment owners in Turkey to increase their capital.
Is it possible to rent out an apartment in Turkey?
In Turkey, both foreigners and Turkish citizens can rent out real estate. However, landlords need to know a few things about rental properties.
In particular, in the Republic of Turkey there are long-term and short-term rentals.
Short-term rental is considered if the apartment is rented out for a vacation period, or more precisely, from 2 weeks to 6 months.
In 2017, a law came into force in Turkey according to which individuals are prohibited from renting out their apartment for a short period of time. Changes in legislation affected not only foreign homeowners, but also Turkish citizens.
Only legal entities that have received the appropriate license for this type of activity and have also fulfilled the following requirements have the right to daily rental:
- The legal entity manages the building or part of it, which is entirely intended for rental. The premises must be equipped with at least 30 sleeping places. That is, the licensed company is the owner of the hotel or part of it, and not individual apartments.
- The building is equipped with a fire alarm, staircase, security, video surveillance and other elements of the security system.
- The legal entity undertakes to register with the police and regularly register all tenants without exception, regardless of age.
In 2024, the Turkish authorities introduced new requirements for tourist rentals (for more than 100 days). According to the provisions of the law, owners of premises who plan to earn money by renting out apartments for tourism purposes will be required to obtain the appropriate paid permit from the Ministry of Culture and Tourism. In case of refusal, the premises can only be rented out for long-term rent. In addition, you will need to fulfill a number of other requirements, including: the presence of official consent from the residents of the house to rent out housing, compliance of the property with certain rules, etc.
Obtaining a license for renting out an apartment for short-term rent and introducing more stringent legislative rules are due to the following objective reasons:
- control over internal security in the state;
- supporting large investors who are ready to invest in the purchase of apart-hotels by the sea in Turkey.
Short-term rentals bring owners about 7–10% per annum.
Of course, changes in legislation do not mean that foreigners lose the right to rent out their house or apartment in Turkey and make a profit. Currently, foreigners have the opportunity to take advantage of two legal options for earning money - long-term or guaranteed rent.
Long-term rent assumes that the tenant plans to live in the apartment for at least six months. But often the lease agreement is signed between the landlord and the tenant for one year.
Private owners have the right to rent out an apartment or villa in Turkey for a long term. In doing so, they undertake:
- Carry out mandatory registration of lease agreements with a notary.
- Enter data on tenants into the database of the Office for Civil Status of the Population and Citizenship under the Ministry of Internal Affairs.
The registration procedure is quick and simple. But according to the law, you can rent out an apartment for long-term rent to a foreigner if he has a Turkish Taxpayer Identification Number, which is usually received by those who live in the country with a residence permit.
The average annual income from long-term rental housing is about 5–12%.
How to rent out property in Turkey
Whether the owner plans to rent out housing daily or for a long term, a mandatory condition for conducting legal activities is the conclusion of an appropriate contract.
A lease is a legally binding document signed by the tenant and the property owner. It clearly states the conditions for the use of real estate in exchange for a certain monthly fee. The rental agreement is drawn up in the language of the tenant and in Turkish.
Important elements of the contract are:
- apartment address;
- characteristics of the rental property;
- information about the parties to the transaction (name, surname of owner and tenant);
- number of residents;
- terms and conditions of the lease, including early termination;
- amount and acceptable option for transferring monthly payments.
The agreement also includes information about the condition of the housing at the time the tenants moved in, the date of signing and the signatures of the parties.
On the eve of registration of the contract, the terms of payment for utilities and payment are discussed, as well as obligations to repay possible damage to property and carry out repair work are regulated. These details are also recorded in the contract.
The contract can be automatically extended upon expiration if both parties agree to this. The tenant has the right to terminate the agreement by notifying 15 days before the expiration of the document.
Only a notarized agreement has legal force and can be used by foreign residents to obtain a Turkish residence permit.
To sign the agreement, the tenant must have with him:
- Passport
- TIN
- In some cases, guarantees from a Turkish citizen or an ikamet card.
It is important that a copy of the passport is translated into Turkish by a sworn translator and certified by a notary office.
As part of the lease agreement, the tenant is responsible for making minor repairs and paying utility bills, including electricity, gas and water, which are charged monthly. Payment is provided through promissory notes or senets.
Senet is a documentary confirmation of fulfilled monetary obligations by tenants.
Senets stored by the property owner serve as the basis for legal action in case of arrears in rent. The number of senets issued corresponds to the length of the lease, and with each payment the landlord returns one of them to the tenants.
Official rental housing automatically imposes obligations on the guest to comply with the conditions established by the owner, including quiet time, restrictions on the number of residents, rules for the use of household appliances, which is also fixed in the contract.
Taxes in Turkey on profits from renting out an apartment
In the Republic of Turkey, as in other developed countries, income received by individuals and legal entities is subject to taxes. In particular, taxes are assessed on profits from the rental of real estate.
Taxation on income from rental housing in Turkey is carried out on a progressive scale. The rate varies from 15 to 40%. That is, the higher the income of an individual, the higher the tax amount. The highest percentage is charged to the lessor if the profit exceeds TRY 1,900,000 per year.
As for legal entities, the laws of Turkey establish a fixed income tax from the rental of objects, which is 20%.
To pay tax on income from rental real estate, registration with the Tax Service at the location of the apartment is required. The tax return is completed every year from March 1 to March 25.
Is it worth buying an apartment for rent in Turkey?
Official statistics confirm: buying real estate in Turkey for rent is really profitable. This is a long-term business investment that can bring a good, stable income, without taking into account the constant rise in price of resort housing.
The strategy when the purchase of an apartment is carried out exclusively for rental from the owner is called “buy to let” or “buy-to-let”. The main factor determining the profitability of an investment is the property’s profitability parameter.
How much you can rent out an apartment in Turkey directly depends on the region in which the property is located. For the Republic of Turkey, the country's average rental yield is about 4–6% per annum. In resort cities, for example, Alanya and Antalya, this figure is higher - about 6-8%, and with a competent approach to choosing apartments by the sea, the profit reaches 10-12%. In Istanbul and Mersin, this parameter averages about 5–8% per year, depending on the characteristics of the property.
How to choose property for rent in Turkey
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location of the property and its proximity to the beaches
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number of rooms and planning solutions
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species characteristics
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accessible amenities in the residential complex
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surrounding infrastructure and transport accessibility
In addition to the general parameters, the rental period matters.
Short-term rentals are especially popular in Turkish resorts. In Alanya, Antalya, and Mersin, small-sized apartments with a good location, close to the beach, attractions, shops, and entertainment infrastructure are in demand. As a rule, vacationers from abroad who do not want to stay in hotels are interested in short-term apartment rentals in Turkey.
As for long-term rentals, several other parameters should be taken into account. If an apartment in Turkey is rented for a year or longer, then the location of such social facilities as public transport, schools, supermarkets, medical and business centers will certainly be important to the tenants. Since usually the tenants are either local residents who are still collecting money for their housing, or foreigners who came to Turkey to work, study or do business.
Selecting a region with high profitability potential is crucial to ensure good profitability. It is advisable to give preference to apartments that are in demand among tenants. We also recommend taking into account other rules of profitable investments:
- Calculate the real profitability in advance, taking into account the associated costs of maintaining housing and paying income taxes.
- Study Turkish legislation and strictly follow it.
- Take drawing up the contract as seriously as possible.
- Equipping the apartment with everything necessary for a comfortable stay, regardless of the type of rental.
Responsibility in Turkey for illegal rental housing
There are fines for failure to comply with the law on leasing real estate in Turkey. The amount of the administrative fine is determined by the type of offense:
- If the housing was rented out for tourism purposes without the appropriate license, the owner may be fined TRY 100,000 for each premises, and also given a two-week period to begin conducting legal activities with official permission.
- If after 15 days the owner continues to rent out the property without a license, the fine increases to TRY 500,000, with the right to draw up documents and start a legal business within two weeks. If the conditions are not met, the fine increases to TRY 1,000,000.
- Penalties are also provided for the sublease of apartments or other residential premises, in case of failure to return the advance payment to tenants, as well as for intermediary Internet portals in the amount of at least 100,000 TRY.
Systematic violations of Turkish legislation regarding the rental of real estate lead to the deprivation of the company's license, and for foreign owners - to possible problems with the further extension of the residence permit.
Guaranteed rental with Altop Real Estate
Guaranteed rent is the most reliable way for investors to officially rent out their apartment in Turkey in order to receive stable passive income.
The owner, immediately after registering the TAPU, can give the management of his apartments in Alanya, Antalya, Istanbul, Mersin to a real estate agency or management company.
The licensed real estate agency Altop Real Estate also provides such services to its clients. By handing over an apartment to management on the basis of an official guaranteed rental agreement, you delegate to us all the worries of finding tenants, preparing and maintaining the apartments. And you yourself simply receive a fixed percentage of the profit and have the right to relax in your apartment, which is indicated in the guaranteed rental contract.
The main advantages of guaranteed rental with Altop Real Estate:
- Obtaining stable passive income.
- The company's specialists are looking for tenants.
- Constant interaction with tenants is carried out through the agency.
- The money is transferred to the owner's account regardless of whether the property is rented or not.
- The average rental income is about 5–6% per year.
- The condition of the housing after the tenants move out is the responsibility of the management company.
The range of services of the real estate agency Altop Real Estate includes not only the implementation of any transactions for the purchase and sale of real estate, but also assistance in choosing apartments in Turkey to receive stable income from rentals. We will select liquid real estate by the sea for you and offer favorable terms of cooperation within the framework of a guaranteed lease. Contact us!