The New Regulations are Proposed for January 1 2024
After many years of discussion the 'inevitable' introduction of the newly proposed regulations are officially scheduled to become law on January 1st 2024.These are regulations governing short term lettings and rentals, usually referred to as 'holiday rentals' because the renters are usually foreign holiday makers in Turkiye.,and the regulations specifically target Air B & B Rentals, and all other short term rentals less than 100 days in duration.
The regulations will deter new investors from purchasing real estate properties, and are likely to be a barrier too onerous for many existing property owners to continue short term rentals. The resulting 'knock-on' effects will impact various businesses in both real estate and tourism sectors in Turkiye, more pronounced in specific locations on the coast and in Istanbul. There are workable solutions to the new regulations governing short term rentals (email info@mytapu.com for more information) but these will add additional costs and thus reduce investors rental income yields, which have been as high as high as 18% per annum for specific property formats in specific locations. Penalties as proposed are financially material and thus a meaningful deterrent to non-compliance.
In substance, by comparison. the new regulations are similar to those existing in other countries and appear to be intelligently drafted. All hope optimistically the implementation of procedural aspects go smoothly, and likely will over time, but during the interim property owners renting short-term are certain to experience reduced rental income. This will have an additional negative impact on real estate and property investment returns in Turkiye, in addition to the rental increase limits capping annual rent increases below the foreign exchange currency depreciation rate which for consecutive years have resulted in declining yields for long term rentals.
Summary Overview of New Regulations most Onerous for Landlords Renting Short Term Holiday Rentals:
- Approval from the residents association is required for properties located on communal sites... 'sitesi' .
- Administrative penalties likely enforced by tax authorities apply for properties having more than 4 short term holiday rentals per year.
- A short term rental is defined as a duration term of less than 100 days.
- New registration requirements of properties required with local authorities, and approvals required (similar to those required for tourism establishments).
Additional Reading for Investors:
Customer Reviews and References
Investment Performance of Turkish Assets During Crisis
Residential Property Investors Tool-Kit for Turkey
Property Finders Service Istanbul and Coastal Turkey,
Citizenship Investment in Turkey
The One Source for Every Turkish Mortgage
Legal Services for Property Matters in Turkey
Advice for Property Matters in Turkey
Property Price Histories in Turkey
Why Istanbul Lifestyle Retains its Allure for Real Estate Investors…
What a Good Property Investment in Turkey Looks Like...
How to Find Property to Buy in Turkey?
Mytapu.com: Why is it ‘The Safe Way to Buy’ Property in Turkey?
The Smart Way to Find the Best Property Deals in Turkey
How to Buy Property in Turkey for a Bargain...
Three Simple Reasons to use a Property Finder....
Buying Turkish Property- Why use an Eksper Rapor ?
Are Appraisal Valuations in Turkey Understating Property Prices?
Independent Legal Advice for Property Purchases in Turkey
‘Reservation Deposits’ for Property Purchases in Turkey…
Property Purchase Disputes in Turkey- Re-claiming Reservation Deposits
What is 'Conveyancing' and why is it essential?
When or When Not to use a Solicitor for Property Matters in Turkey
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