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).