If you are considering renting out your property in Turkey, there are many things to know. Turkey has always attracted independent travellers. And while the country's Mediterranean and Aegean coastlines are firmly established resort hotel destinations, the legacy of independent travel in Turkey lives on. In fact, there is high demand for self-catering property, which leads many holiday homeowners to ask if renting in Turkey is easy. However, not every home has potential. So, this article outlines tips to ensure success as a landlord and more things to consider.
About Renting Out Property in Turkey
Landlord Benefits
- Profit: Renting out property provide steady income streams
- Long-term Asset: Real estate in Turkey can appreciate value over time, providing a long-term investment to sell for later profit.
- Control: Owners control how the property is managed, including selecting tenants and deciding on repairs and upgrades.
How to Market Your Holiday Home
When renting out your house, you need unique selling points. Potential renters will be faced with hundreds of descriptions and photos and will be looking for something that stands out. An excellent photo will help. Choose the property's best feature for the listing thumbnail - the swimming pool lit up attractively at night, the terrace overlooking the sea or another arresting image. Simple bullet points highlighting the property's most attractive features catch the eye. Also, consider other factors like the distance from the airport, transport links, and nearby amenities like restaurants and bars.
Know the Property Rental Market
There are generally two types of holiday home renters. Those looking for reasonably priced getaways to eat at home to keep costs down and those seeking something more unique - far removed from a hotel's impersonality. The second guest is often prepared to pay more for the pleasure of staying somewhere. Target your market rather than taking scattergun approaches and trying to attract everyone.
Display Great Photos
Lettings sites confirm that properties with nine to 12 photos attract up to 40% more enquiries than properties with four or fewer. So take good quality photos highlighting the unique features of your home. Your photos are your shop front, so get them right. We agree that hiring a private photographer is worth it on this occasion.
Home Décor and Design
Obviously, not every rental property is going to have marketable quirkiness. But stamp your own mark on the interior. Give prospective tenants pleasant environments because that's what they are paying for. Don't choose cheap furniture and fittings because they make the property look shabby. A few touches to ensure potential tenants settle in work wonders. Comfortable sofas, large beds with quality mattresses and bedroom curtains that block out the bright Turkish sunshine are essential.
Outside areas should feature quality sun loungers and patio furniture with plenty of available shade. Work out who your property will appeal to, where to find them and decorate accordingly. Ensure the property decor and contents are tip-top, and provide extras. Fluffy bathrobes, good bed linen and quality bath products are good starting points. Keep furnishings classic, high quality and simple - no IKEA.
Think About Property Management and Key Holding
If you live near your holiday home, it's easy to provide good service. But, if you can't meet and greet guests, find reputable local companies for continuity of service and cleanliness, health and safety inspections, and emergencies. They will also be responsible for property inspections, key holding, welcome packs, cleaning and maintenance and property repairs.
Market Wisely
For renting out a property, there are so many holiday lets websites. Some charge fees in exchange for massive exposure. However, there are so many properties on these sites yours might get lost unless your property is unique. Suitable sites to look at include Holiday Lettings and Air BnB.
Another option is creating a website through one of the many free online hosts like Blogger. Otherwise, an agency will handle marketing, photos, booking enquiries, payments and maintenance - in exchange for a commission on bookings. The agency will work hard to market your property; if they don't, they won't get their commission.
Rental Income and Income Tax
When you buy a home to rent out, it is easy to get carried away. But don't forget that rental income pays a large part. So also browse the market to see what other similar properties are and how much rent they charge. Your rental price should align with theirs. You do not want to undercut your rental profit but neither do you want to charge yourself out of the property rental market.
When knowing how much rent to charge; generally speaking, rental prices for holiday property in Turkey range from around $50 to $500 or more per night, depending on the property type, location, and time of year. Rental prices are higher during peak holidays, such as summer and major holidays. It's important to note that rental prices vary significantly based on the specifics of the property, so research and compare prices for properties.
Remember that you must pay income tax on rental income over set amounts. There are set rules for paying income tax on rental properties in Turkey. But don't forget to check your home country's income tax rules on foreign income.
Know Your Rental Property Responsibilities
Landlords in Turkey have several legal responsibilities when renting out property. These include:
Providing Safe and Habitable Property: The landlord is responsible for providing a safe property for tenants. This includes maintaining the property to reasonable standards and meeting all safety requirements.
Repairs and Maintenance: Keep the property in good repair and maintain all essential services, such as plumbing, heating, and electricity. The landlord should also fix damages caused by events outside the tenant's control.
Legalities: Ensure the property complies with all relevant local laws, including building codes, safety requirements, and zoning laws.
Providing Essential Services: Provide heating, water, and electricity to the property, as well as any agreed-upon additional services like internet or cable TV.
Handling Security Deposits: If you collect a security deposit, use it according to local laws. This includes returning it to the tenant if there are no damages.
Respecting Privacy: Respect tenants' privacy, and provide notice before entering the property for non-emergency repairs or inspections.
Know the Downsides of Renting Out Your House
- Upfront Costs: Purchasing rental properties often require significant upfront investments, including a down payment, closing costs, and potential renovation or repair expenses.
- Tenant Management: Managing tenants can be time-consuming and may require dealing with late payments, and property damage.
- Maintenance and Repairs: Landlords have responsibility for maintaining the property and making repairs when necessary, which can be costly and time-consuming.
- Vacancy and Turnover: When tenants leave, you may experience vacancy periods where the property is not generating rental income.
- Market Fluctuations: Real estate values fluctuate based on market conditions and impact the investment value.
When considering rental properties as an investment, thoroughly research local markets, calculate potential expenses and rental income, and have plans for managing the property and tenants. Although renting out can be lucrative, it needs careful management.
Best Areas for Holiday Homes in Turkey
It is not uncommon for Turkish holiday homeowners to generate more than 7%pa in rental yields. We have seen income on holiday villas and apartments exceeding 10%; however, make no mistake, this is not the norm. A handsome 6%pa for renting is undoubtedly achievable, though. So, which areas in Turkey generate an attractive rental income?
Ovacik, Fethiye: Close to the blue waters of the famous Oludeniz Beach, Ovacik, backed by mountains, has good travel links and Fethiye on the doorstep. Fethiye is a major holiday destination in Turkey and home to many gorgeous beaches. There are also many other attractions for holiday renters.
Upmarket Kalkan: Renting out a house in Kalkan will generate high rental yields. Beautiful Kalkan is one of Turkey's best spots for rental. Rentals tend to be upmarket, ranging from high-end apartments to luxury waterfront homes with their own jetties. The general rule is that the more exclusive the house, the more in demand it will be in well-heeled Kalkan.
Yalikavak, Bodrum: Yalikavak's marina heralded a new era of investment in this former fishing village. There is a shortage of marina rental properties in Yalikavak, which has sent rental prices skyward. Shoreline villas with private mooring, luxury penthouses and apartments are highly sought after.
More About Renting Out Houses Successfully
So, there is much to consider when renting your house in Turkey. However, anyone can generate profitable rental income with careful research, planning, marketing, and management. If you are considering buying property to rent it out, contact us today and chat with an agent. Also, see our portfolio of apartments and villas across Turkey in places where holiday home rentals are successful. We are Property Turkey, and our reputation and professionalism can help you become a homeowner in Turkey.
Fethiye 
4 
4 
X