What will the new law on short-term property rentals in Turkey change?

On October 25, 2023, a law numbered 7464 concerning the rental of residential properties for tourism purposes was signed in Turkey. The full text of this document has been published in the official newspaper in Turkish.

Regulation of short-term rentals

This law regulates the mechanisms of short-term rentals and limits the maximum rental period for housing to 100 days. Contracts that exceed this duration are not subject to the new legislation.

Entry into force and residence permit

It is important to note that the new regulations will only apply to transactions concluded starting from January 1, 2024. At the same time, there have been changes in the rules for obtaining a residence permit for those who purchase real estate in Turkey in the recent period.

Unclear aspects of the new law

As for the details of such changes, there are currently no clear guidelines regarding the application of the law, and some aspects remain uncertain. Nevertheless, the main conditions regarding the new rental process have already become clear.

Obtaining a license

In order to be able to rent out residential properties for short-term leases, owners will need to obtain a license from the Ministry of Culture and Tourism. These obligations are imposed on property owners, and those who are already engaged in this activity are given a deadline until the end of January 2024 to apply for the license.

Application review timelines

The Ministry of Tourism is required to review the submitted applications and provide a response within three months. At the same time, it is currently unclear how much time will be needed for the actual processing of these applications.

Unified consent of the owners

To obtain a license, the owners will need to present a unified consent from all property participants who have shares in the apartment. In multi-apartment buildings, it is sufficient to have the opinion of those who are the owners of the apartment in a specific building to obtain consent.

Charters and short-term rental

If the charter of the management company specifies the possibility of short-term rentals, then a license will not be required. However, in practice, such solutions are rarely encountered, as this requirement did not exist before. Currently, charters can be amended, but this requires the consent of four-fifths of all owners' votes.

Subletting and participation in business

Please note that subletting is prohibited;This means that it is not allowed to rent real estate for a long term and then lease it to tourists for a shorter period. Only property owners or licensed agencies will be able to enter this business. Permits may also be issued in the name of the management company responsible for the complex.

Control and fines

After obtaining the license, owners are required to install a sign issued by the Ministry of Tourism at the entrance of the building. Regulatory authorities will conduct inspections to ensure compliance with the new regulations. Violations of these rules may result in fines ranging from 100,000 to 1 million lira, which corresponds to amounts from 3,300 to 33,000 euros.

Expert opinions

Alexander Petkov, a real estate expert from Eco Investments, pointed out that there are currently more questions than answers in this field. The uncertainty surrounding the process of obtaining a category A license for real estate agencies, which would allow them to offer their clients' properties for short-term rental, particularly complicates the situation.

Question about resident registration

The issue regarding the registration of residents who do not pay for their accommodation remains unresolved. Many property owners face situations where relatives or friends come to stay with them. Questions related to refugees have become particularly relevant: what should a property owner do if they provide housing free of charge? There is also the problem of tax obligations and the possibility of deductions — currently, accountants are unclear about all the details of these issues. Additionally, there are difficulties in registering tenants with law enforcement agencies — the problem of lack of access to the necessary systems is still unresolved, and the timeline for its resolution remains uncertain.

Suspension of short-term rental

Considering all the mentioned difficulties, we have decided to suspend short-term rentals until all the nuances of this activity are clarified. At the moment, properties are only being rented for a period of three months or more, mainly during the winter season. We are actively consulting with lawyers and accounting specialists, awaiting clarifications from government authorities. This approach currently seems to be the safest. Yes, previously it was possible to earn up to...€1500from the rent of the apartment per month, now this figure has decreased to€500However, such an amount still helps cover the costs of property maintenance and minimizes the risk of fines for the owners.

Requirements for residential complexes

As for the requirements for residential complexes to obtain a short-term rental license, there are currently no clear criteria. It is only known that each residential property must have a sign confirming its registration with the Ministry of Tourism. The process for obtaining licenses will only be understood after the practical implementation of the new rules.

Adaptation of property owners

Property owners need to adapt to the changing market conditions. This is significantly easier for new buildings, which can obtain licenses or make necessary changes to their charters before receiving a certificate of ownership. Many new developments may see this as an opportunity to market their properties. For existing complexes, however, it is somewhat more complicated. Even having a single license from a neighbor does not make it easier for all residents to obtain permits.

Challenges for existing complexes

Most existing residential complexes generally do not have licenses, and changes to their charters have not been relevant in the past. In the current situation, legalizing short-term rentals in such buildings may require the consent of all residents. Despite rumors of possible relaxations, no such measures have been adopted in any region. This situation certainly creates challenges for investors, which can be assessed at30-40%from the total number of foreign investors expecting rental income. This refers to tens of thousands of people.

What to do in such conditions?

The question remains open: what actions should be taken in this situation? One possible path is to continue renting out the property in the gray area, but this comes with known risks, and likely some property owners will take this step. Another option is to put the property up for sale.

The situation in the real estate market in Turkey

In the context of the unstable situation in the real estate market in Turkey, there is a possibility of a decline in prices for secondary housing, especially in regions that are particularly popular with tourists. It is important to note that owners who purchased their apartments two to three years ago will not experience significant losses even in the event of a price drop of 25-30%, as the overall value of housing has significantly increased during this period.

Possible solution: long-term rental

One solution to this situation could be long-term leasing. Although the income from such deals is likely to be lower, owners will be able to avoid many costs and complications associated with obtaining licenses.RefugeesandimmigrantsThis also creates significant demand for rental housing in the country.

Two main directions for owners

Owners who already have apartments now have two main courses of action:

• Selling your property.
• Transition to a long-term lease, which implies a term of more than one hundred days.

For example, if a tenant plans to stay for three months, it is possible to sign a contract for 101 days. Long-term rentals typically do not generate much income. It is important to note that tenant legal protections in Turkey are very strong, which can complicate the eviction process.

Recommendations for property owners

For this reason, owners may consider selling their old properties and purchasing new builds for short-term rentals. I believe that the current changes in the market could create conditions for a decrease in prices for secondary housing. Some owners may easily adapt to the new conditions if their apartments were previously used for short-term rentals on a professional basis. Although there were not many such properties, they could still be found on the market.

Long-term rental and licensing

Our company has been engaged in daily rentals for a long time, and we do not need to make significant changes to our operations: we have always acted within the framework of licenses and only in those residential complexes where it was permitted. Thus, nothing will change for our investors: we will simply need new permits. Previously, licenses were issued by local authorities, but now this function will be transferred to the Ministry of Tourism.

Licensing of objects and owners

It is important to understand that licensing applies not only to the property itself but also to the owner or the legal entity granted the right to carry out this activity. This means that if an agency is operating in a residential complex and renting out 30 apartments, it does not automatically allow all owners to engage in similar activities. Each of them needs to obtain a separate permit.

Strategies for Apartment Owners

For owners who previously managed the rental of their apartments themselves, I see three main strategies:

• To take a risk and continue operating in the shadows, hoping that the regulatory authorities do not discover their activities.
• Switching to a long-term lease, which could also be a sensible solution at this time.
• Selling your property and looking for alternative options to avoid potential complications and preserve your investments.

Managing an apartment through a management company

In the third option, if your residential complex has a management company with a short-term rental license, you might consider entrusting them with the management of your apartment. Here are a few examples of properties in Turkey.

Penthouse in Alanya

For example, in Alanya, you can purchase a magnificent penthouse with an area of 63 m² for €144,000. The purchase includes...residence permitHere we are looking at a new project located in the Mahmutlar area. The architectural design of this residential complex impresses with its modern and futuristic elements.

The space created by landscape designers will resemble an oasis with botanical gardens, where one can enjoy green plants, flowers, and well-maintained paths, as well as bridges that cross friendly alleys.

Penthouse for €305,000

Another attractive project is a penthouse in Alanya for €305,000. It has an area of 130 m² and includes the following features:

• 3 bedrooms,
• 2 bathrooms,
• 2 zones for the kitchen space.

After the purchase, the owner is also provided withresidence permitCustomers can take advantage ofonline screenings, with the possibilitydeleted transactionsand payment in rubles. This new residential complex project is located in the picturesque area of Kargicak and consists of two sections with 6 floors each, featuring a modern European facade, surrounded by well-maintained grounds. Residents will have access to a variety of services and a developed social infrastructure, just 150 meters from the sea.

Apartment in Gazipaşa

Another interesting offer is an apartment in Gazipaşa priced at €115,000. It has an area of 55 m² and includes:

• two cozy bedrooms,
• one bathroom.

When purchasing this apartment, it also comes withresidence permitA modern complex is being built in this area, offering comfortable 1+1 and 2+1 format apartments. This complex consists of a single block with contemporary design, constructed by a reliable construction company, with planned completion in 2023. The apartments range in size up to 55 m², providing various layout options of 1+1 and 2+1.

New apartment project in Alanya

In Alanya, there is also a new apartment project with an area of 60 m², priced at €110,000. This project stands out with its attractively low prices, especially in the developing area of Payallar. The construction of the complex has just begun, allowing future buyers to take advantage of the appealing prices during the construction phase.

During the price increase, you have the opportunity to receive up to30% profitfrom the initial investments. Moreover, to simplify the purchasing process, provisions have been madeflexible installment terms.

Apartment in Mersin

Finally, it's worth noting the apartment in Mersin, which is offered for €60,000 with an area of 58 m² and two bedrooms.

Presentation of a new real estate project in Antalya

We are pleased to present to you our new early-stage real estate project in Antalya, located in the ichthyological area of Altintas. Here, an apartment is offered at the price of147,000 euros, with a total area reaching64 square metersThis housing will be an excellent choice for those who plan to obtain residency through real estate acquisition.

Altyntash is an actively developing and promising neighborhood that offers attractive conditions for investment. In this area, you will find some of the most appealing housing prices, making it a true find for potential buyers. One of the main advantages of its location is its proximity to magnificent...the sandy beaches of Larawhere you can enjoy extensive areas for relaxation and picnics.

Luxurious villa in Alanya

Currently, a luxurious villa in Alanya is also available for sale, with a price of378,000 eurosThe area of this object reaches180 square metersIt covers four spacious rooms with two bathrooms. Special attention is given to the convenience of ordering the property online, as well as the ability to conduct transactions remotely with payment in rubles.

A spacious two-level villa was built inin 2016and demonstrates sensible zoning: a cozy living room with an open kitchen, three bedrooms, two bathrooms, two balconies, and a terrace with a stunning view. The interior is designed using high-quality materials, providing aesthetic pleasure.

Comfortable apartments in Alanya

We also have offers for the sale of apartments in Alanya at a price169,000 eurosThese modern apartments have an area of50 square meterslocated away from the hustle and bustle of the city. The construction of the complex will be completed inSeptember 2023and we offer a variety of layout options:

• From2to4+1
• Areas from50 to 194 square meters

All apartments will be sold with finished interiors and built-in furniture, making them ideal for living.

Cozy apartment in the Oba area

In addition, there is a comfortable apartment for sale in Alanya, which can be purchased for146,500 eurosThe total area of this property is65 square metersand the layout —2It is located on the second floor and includes an open-plan kitchen, one bedroom, a bathroom, and a balcony.

Everything necessary for living — furniture and appliances — is already included in the price. The sea is nearby, just a short distance away.1.7 kmThe Oba district is in high demand among both residents and tourists.

Apartment with a 1+1 layout

A apartment is also for sale in the same district for164,000 eurosThe building, consisting of four floors, was constructed inin 2014and offers housing with a total area of65 square meterswith the layout2The space includes a bright living room with a kitchen, one bedroom, a bathroom, and a balcony.

The apartment comes furnished and is fully equipped for your comfortable living. The surroundings offer plenty of amenities and create a pleasant atmosphere.

Updated apartment with a 3+1 layout

In conclusion, we would like to note that a modern apartment with a layout is available for sale.3+1in OBA at the price286,000 eurosThe area of this property is110 square metersThe complex was built inin 2012and offers modern amenities for comfortable living. This is a great opportunity for clients looking for higher-class accommodation in this picturesque Turkish region.

Apartment layout

The layout of the presented apartment is meticulously thought out — it includes a spacious living room that is boldly connected to the kitchen, three comfortable bedrooms, two bathrooms, and two balconies.

The interior work has been completed to the highest quality, giving the apartment a stylish and modern look. The bathrooms are equipped with contemporary shower cabins and plumbing fixtures. Additionally, the apartment is being offered for sale with a specific set of furniture, which will greatly simplify the moving and settling-in process.

Apartment in Mahmutlar

In one of the most popular areas of the city of Mahmutlar, a cozy 1+1 apartment is for sale. This property is located on the third floor and has a total area of 55 square meters.

• Kitchen combined with the living room;
• One bedroom;
• Bathroom and balcony.

The apartment is for sale with finished interiors, including a kitchen set and all necessary plumbing accessories.It's important to noteThe distance to the sea is only 700 meters, which makes this offer especially attractive for beach lovers.

Offers from Liga Real Estate

The company Liga Real Estate offers apartments in picturesque Alanya, Turkey, for a price of €260,000. The area of this property is 73 square meters, which includes three rooms, two bathrooms, and one balcony.

This fully furnished apartment is located on the first floor of a 12-story building and offers its residents a variety of amenities, such as:

• Hammam;
• Jacuzzi;
• Finnish sauna;
• Gym
• Tennis court;
• Covered and children's pools.

SafetyIt is provided with round-the-clock security and video surveillance, as well as the possibility of parking for cars.

Apartment in Mersin

It is also worth noting the apartment in Mersin, which is priced at €100,000. The area of this property is 82 square meters, and it has three bedrooms and three bathrooms.

The apartment, located on the second coastline, is situated in the rapidly developing area of Erdemli and could be an excellent investment option. The apartment is offered with complete finishing and is already equipped with kitchen and bathroom furniture.DistanceIt's only 250 meters to the beach, which makes it especially attractive.

New residential complex in Cheshmeli

An interesting option could be a new residential complex located in the prestigious resort area of Çeşme, which is offered at a price starting from €79,000. The plan includes the construction of three modernly designed residential blocks with the necessary infrastructure.

All apartments will be offered with finished interiors, as well as kitchen and bathroom fittings. There are options for apartments with various layouts available for sale, including:

• 2+1 (with an area of at least 70 square meters);
• 3+1 (from 82 square meters).

Penthouse in Alanya

A penthouse in Alanya is also available for sale, with an area of 118 square meters and a price of €340,000. This property offers its owners unique conditions for comfortable living in a beautiful resort city.

Thanks to its convenient location, this complex allows you to enjoy a variety of social and historical attractions.Mediterranean Seais located in close proximity, which adds even more convenience and style to the lives of local residents.Don't miss out on this opportunity.— here you can create the perfect space for living or relaxing.

The real estate market in Istanbul

Recently, there has been a noticeable increase in interest in real estate in Istanbul, especially in key areas like Fikirtepe. This rapidly developing district on the Anatolian side of the city offers unique opportunities for those seeking a comfortable and prestigious lifestyle.

Project from Hekimoglu Construction

One of the significant projects here is the proposal from Hekimoglu Construction, which offers apartments at a price700,842 eurosThis is a wonderful place for anyone who wants to fully enjoy life in this magnificent metropolis.

The convenient location of Fikirtepe

Fikirtepe, located in the very heart of the capital, provides easy access to all key infrastructure facilities, such as bridges, transport interchanges, and shopping complexes. This adds extra appeal for future residents who wish to experience all the delights of urban life.

Projects from Mercury Group

Another interesting project developed by Mercury Group offers apartments for838,285 eurosThis option is especially suitable for families dreaming of a future together.

The perfect conditions have been created here for making pleasant memories and enjoying cozy moments with loved ones. The new project called "Sea Sunset" is located in the Buyukcekmece area and offers entertainment and comfort for the whole family.

The beautiful panoramic views and friendly atmosphere create the perfect conditions for starting a new life.

Apartments in Bahcesehir

The next project by Mercury Group, located in Bahcesehir, has a price504,356 eurosIt features modern design and a well-developed infrastructure. This prestigious area delights its residents:

• Green parks
• Cultural institutions
• Entertainment complexes

The developing transportation system with access to the TEM highway provides convenient access to other areas of Istanbul, making life here even more comfortable.

Luxury real estate in Alanya

If you are interested in more luxurious real estate, you should consider the villa in Alanya from Mercury Group, which is priced at1,471,956 eurosThe villa is located just 800 meters from the coast and offers stunning views of the sea and the surrounding landscape.

With three floors, stunning design, and modern amenities such as a private pool, winter garden, fitness center, and sauna, this property will be an excellent place for prestigious living.

Changes in the rental market

The rental market in Turkey is also undergoing changes. The first effects of the new legislation will impact the long-term rental sector. It is expected that the number of properties available for long-term rent will increase as owners who previously only worked with short-term tourists enter the market.

This may lead to a decrease in rental prices; however, the availability for short-term rentals will become lower. Hotel owners and private landlords looking to rent out their properties on a daily basis will need to obtain licenses, which will allow them to operate their business legally.

Impact of the new legislation

The new legislative changes have had a significant impact on the market, primarily affecting illegal rental schemes. Previously, property owners were required to obtain licenses and register tenant information with law enforcement agencies, but many avoided this.

Now, with the introduction of hefty fines, their caution is likely to increase. People are starting to understand the necessity of obtaining licenses for rental businesses, and this legislation is making significant changes in the real estate rental sector in Turkey.

To a certain extent, some transactions will still remain outside of official accounting, but the overall situation in the market will significantly improve. A new regulation has recently been adopted that introduces significant changes in the field of real estate advertising. According to the new rules, homeowners are now required to provide their personal information when posting sales ads, and legal entities must include the company name and contact phone number. To implement these requirements, the Ministry of Commerce has already developed an electronic system for verifying ads, known as ei̇ds. In the near future, its functionality may expand not only to sales but also to the rental of real estate.

Government control

With the introduction of new legislation, government agencies will gain expanded powers to monitor the situation. This initiative will significantly simplify the process of identifying illegal offers on platforms like Airbnb and Booking, as well as allow for prompt responses to complaints from residents and managers. There will always be dissatisfied tenants, and this is an inevitable aspect.

Changes in the rental market

It is expected that the number of short-term rental listings will significantly decrease. The market will mainly consist of those landlords who can obtain licenses, which will have a substantial impact on price levels. My forecasts suggest that rental prices may increase by20-30%.

The situation with hotels

As Alexander Petkov from Eco Investments stated, my short-term assessment of the situation is that a significant portion of properties rented out on a daily basis will leave the market. In such conditions, hotels will undoubtedly raise their prices, and there can be no doubt about that. Currently, many five-star hotels are closing for the winter season, which, in turn, weakens competition. Remaining apart-hotels will certainly try to take advantage of the situation that has arisen.

Long-term lease

Speaking of long-term rentals, the trend of declining prices will continue. However, we are already seeing that prices have dropped by about25-30%It is important to note that most owners are currently signing contracts until May 2024, hoping that by that time the procedures for operating in the tourism market will become clearer, allowing them to return to active business operations during the peak season.

Impact on the real estate market

These changes may also affect the real estate sales sector. Prices in the secondary market will decline, especially for properties that cannot be licensed; new developers, in turn, will anticipate the possibility of obtaining licenses in their charters, which will become their competitive advantage.

Comparison with Barcelona

The situation is similarly developing in Barcelona, where new tourist licenses have been banned for a long time. Properties that have obtained such a license are valued at20-30%more expensive than similar ones without a license.

Market forecasts

Alexandra Kabakchi from Ataberk Estate believes that the prices of real estate in the secondary market are likely to continue to decline. However, developers with sufficient financial resources will not lower their prices. Nevertheless, sellers will still find themselves in a favorable position, as they will be able to sell their properties not at a loss.100 thousand euros, and by70even if they acquired this real estate property for40.

Investment deals

Experts predict that investment deals in the short-term rental market will remain. This indicates that no one intends to abandon this sector, despite changes in legislation.

Conclusion

So, the new rental law in Turkey has become an important milestone in the short-term rental sector. Adopted on October 25, 2023, it introduces a number of significant changes that will undoubtedly impact the rental market and its participants. However, the reality is that, despite the new legislation, many aspects remain unclear and require further clarification.

On one hand, the law creates the necessary framework for organizing activities related to short-term rentals, which in the long run may contribute to improving the quality of services offered and increasing trust from tourists. As a property owner or an agent working in this field, I understand how important direct control and legal guarantees are. But on the other hand, the uncertainty in the procedures for obtaining licenses and registering tenants raises many questions. How will the enforcement of the new rules be implemented? How thoroughly will the validity of licenses be checked, and how often will inspections take place?

Some property owners may consider the possibility of renting out their housing."gray" rentalThis is related to high risks. The market is already lacking clarity, and uncertainty can only exacerbate existing problems. At the same time, this is a great opportunity for those considering selling their property, taking into account the new regulations and potential penalties.

Important points

• Uncertainty in the licensing procedurescauses confusion among market participants.
• The possibility of leaving in"gray" rentalpromises high risks.
• Necessityexplanations and instructionsfrom the government to simplify the licensing process.

I sincerely hope that the government will introduce clarifications and guidelines that will simplify the licensing process, making it more accessible and understandable for all market participants. Whether the situation can be salvaged for those who have been investing in real estate in Turkey for a long time remains to be seen. Ultimately, the development of these processes will determine how effectively and profitably business can be conducted in the new legislative environment. As the author of this material, I will closely monitor the situation and prepare new reviews for all interested parties.