NEW LAW ON SHORT-TERM RENTALS
Law No. 7464 regulating short-term tourist rentals, published in the Official Gazette on November 02, 2023, came into force on January 1, 2024.
According to the law, less than 100 days rentals are considered short-term. This applies to all landlords, including Turkish citizens, relatives, and other third parties. Those who intend to rent out their home short-term must meet certain requirements.
To rent houses through the Electronic Government (hereinafter E- DEVLET) of Turkey, you must provide;
- Certificate of Ownership (TAPU)
- Certificate of occupancy
- Consent of all owners in apartment buildings.
- In the case of villas and residences, a management plan and a decision of the General Assembly are required, and details on the quality of the facilities will be provided by the Ministry of Tourism.
Our goal is to provide deeper insight into developments in the tourism and real estate sector in Turkey, a country that attracts tourists, with their causes and consequences. We strive to provide accurate information to citizens of other countries who have chosen Turkey for residence and tourism purposes.
Using the expression “for tourism purposes and accommodation” it is important to note that the scope of the real estate agency will not include the issue of refugees, although this has been a pressing issue in the country for many years.
After inspection by the municipal tourism office, a license will be issued and the apartment will be issued a document with a permit number confirming the suitability of the residence for rental for tourism purposes. The list of guests, in turn, must be transmitted to the security forces daily.
Those who wish to rent out their home for short-term tourism purposes are responsible for completing the paperwork and obtaining the appropriate license. If they prefer to use an intermediary organization, they can turn to the services of class-A travel agencies.
It is also worth noting that income must be carefully and accurately declared for real estate income tax purposes for short-term rental properties. In this context, appropriate rules have been introduced along with the possibility of paying income tax through E-DEVLET.
If all the apartments in the building belong to one person, then this person can rent out a maximum of 25% of the total number of apartments in the building using the short-term rental system. However, if the apartments are owned by more than one person and they all want to engage in short-term rentals, other owners can also rent out their apartments up to 25% of the total number of apartments. Thus, in a building with twenty residences, four people can rent all five of their apartments, subject to the restrictions.
In case a person rents out 5 or more of his own residences for short-term tourism purposes, he is required to open a commercial enterprise and obtain the appropriate operating license.
The regulations developed by the provincial tourism departments in accordance with the relevant law contain many details, mainly related to health, hygiene, safety, and condominium legislation. The process is complex and although we, like many in our sector, have some questions, clear answers to these can only be obtained with the passage of time and the emergence of appropriate amendments. Many concerns still exist, especially regarding the impact on the real estate community when combining such rentals with tourism. At this point, this can lead to various negative consequences;
- Housing for employees of travel agencies: Short-term rental of premises with the support of class A travel agencies gives the right to use a residential unit as temporary accommodation for company employees. This controversial point becomes a problem not only for other house residents but also for the owner of the rented apartment himself. This could potentially affect the quality of stay in the building and create conflicts of interest between travel agency staff and other residents. Regulating this issue requires careful discussion and, possibly, subsequent changes.
- Conflicts with residential complex managers: Interaction between agencies and residential complex managers can cause conflicts, especially if the manager does not have sufficient knowledge of the rental business. The key is to resolve disagreements and establish clear rules of cooperation.
- Risk of evictions and sociocultural aspects: The risk of tenant incompatibility and issues related to the evacuation procedure require careful attention. It is important to consider sociocultural aspects to avoid conflicts within the building and maintain the level of comfort for all residents.
- Ensuring balanced regulation and consideration of potential issues in these areas can help mitigate the potential negative impacts of combining rentals and tourism.
It is important to note that the discussion and criticism of this law are intended to discuss possible improvements or adjustments that could lead to more effective and balanced regulation of short-term rentals in the interests of all parties, but at the moment the law does not cover more issues from the outside apartment owners and real estate agencies.
We want to emphasize that our disclaimers are not intended to belittle the topic or convey negative emotions. We understand that this topic is new and raises many questions. In every country, it is important to keep records for the safety, health, and peace of mind of citizens, while not disrupting the integration of visitors from other countries.
Residential addresses and documents are verified by various agencies, and these measures are aimed at ensuring safety and confidence in the community. The increased number of people living in the country as permanent residents presents a challenge and we hope that these issues will be addressed with care and rationality.
We are committed to working together to create a freer and safer future. We wish you happy days and hope for a positive resolution of the issues that arise.