When you buy a property in Turkey that is situated in a complex, how exactly is the complex managed and looked after going forward? In this blog we answer all you need to know about property complex management in Turkey.
Initial management after purchase
Normally what happens once a complex has been completed, is the developing company who built the complex will take over management for the first couple of years until all the units within the complex have been sold. Once all properties within the complex have been sold, then the developer will phase out involvement and hand over management to the owners of the houses.
What happens after all units are purchased
Once the developer has handed over the reigns of the complex to the owners, they will then have to establish an owners’ committee in compliance with Turkish habitation laws. Basically, each landlord will hold a share and voting rights within the management of the homes. A manager will have to be appointed by the committee to oversee and facilitate the required upkeep and maintenance tasks.
What does the manager do?
Usually a full time resident of the complex, the manager will appoint various third parties to undertake maintenance tasks such as: pool cleaning and maintenance, gardening, general upkeep and other tasks such as communal water, electricity, and gas.
What does the committee do?
The committee will put together an annual budget to cover the costs of the yearly maintenance for the complex. In most cases, there will be a small fee included as a salary for the manager for the efforts in looking after the complex. The budget will then be divided between the owners and collected monthly, quarterly, or annually depending on what the committee agree. Turkish law states that a management and maintenance agreement should be signed to detail all the costs and fees included.
Can you hire a management company to undertake all the maintenance?
Yes, you can hire a management company who will carry out all of the above tasks instead of a resident manager to devote tasks to third parties. However, the company that you appoint will not have responsibility for the collections from each house owner – instead, the complex will be invoiced by the management company as a whole. This can sometimes lead to some owners ‘not paying their way’ if there is not an established committee in place between the residents to organise and collect the payments for maintenance. It is important that the committee between residents is established and running smoothly in order for the complex to be well maintained and kept. This could be through email, letters, etc.
The most important thing is to have a committee contract in place that can be sent to all the owners for signature and ensuring payments are made – non payers can legally have payments collected through the courts if need be. Obviously this is a last resort and in most cases, the management committee will budget an extra 10-20% in the annual budget to allocate for non paying owners, if there are any.
Most home owners realise that it is crucial for maintenance to be undertaken and upkeep provided for the complex as it benefits all home owners and those who are looking to make rental gains and profit with their real estate. After all, if you are investing in overseas real estate, it is a costly expenditure, most home owners will not want to jeopardise their investment by not paying maintenance.
Is it better to have a manager or management company in place?
Unless we are talking about a huge complex with hundreds of units in place, then we suggest that the best way to manage and maintain the complex is with the management committee and the selected manager. If the manager and committee decide to hire a management company, it is best to ensure that contracts are signed between all residents to make sure that payments are made on a timely basis.
What are typical management fees charged in Turkey?
This varies from area to area and certainly depends on services on offer. For example management charges payable by villa owners say in Mandarin Oriental Residences in Bodrum Turkbuku are in excess of Euro 1,500 per month. However, this is the extreme edge and each villa costs in excess of Euro 4m with private beach, mooring etc. Generally speaking management fees for standard holiday homes in Turkey, villas and apartments, should not exceed Euro 100 per month for apartments and Euro 150 for detached villas. For some more modest complexes with limited facilities and services, these fees can be as low as Euro 20 per month.
For more detailed information on management and maintenance of your new home in Turkey, please refer to our detailed buyer guide.
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