Is it possible to rent out an apartment to make money? Detailed analysis of the real estate market in Turkey

Buying real estate in Turkey is a popular and reasonable step both for personal use and for investment purposes. One of the main ways to monetize the property is renting out the apartment. This type of income is of interest to both Turkish and foreign owners, especially in light of the growing attractiveness of the Turkish housing market.

Pemlak as a real estate marketplace in Turkey helps users to find ideal rental and investment properties on a daily basis. And today we will examine in detail whether it is possible to really earn by renting out an apartment, what pitfalls exist and how to bypass bureaucratic complexities.

Profitable rent - reality or myth?

Against the background of a stable tourist flow and increasing number of expats, real estate for rent in Turkey remains one of the most stable sources of income. The potential is particularly high for properties located in regions such as Alanya, Antalya, Mersin, Fethiye, Bodrum, Istanbul and Izmir.

According to the latest data, the average yield from renting out an apartment is:

• 5-7% per annum - for long-term rentals;
• 8-12% for short-term rentals with good occupancy.

On Pemlak you can find properties that are ready to be rented out: furnished, equipped and with all the documents. This is important for investors who want to enter the market quickly and with minimal investment in infrastructure.

Long-term rent: stability and minimal risks

Long-term rent in Turkey is suitable for those who prefer predictability. Usually the contract is concluded for 6-12 months and is automatically renewed. This minimizes downtime, allows for better budget planning and eliminates the need to constantly search for tenants.

To enter into a tenancy agreement you need to:

• Register the tenant in the local Nüfus system;
• Notify the tax office of the rental income;
• Sign the contract in writing, preferably with a notary.

It is important for the owner of a property in Turkey to remember to file an annual tax return and pay tax on rental income (rate of 15 to 40% depending on the amount).

Short-term rentals: high yields but more responsibilities

Since the beginning of 2024, Turkey has tightened the rules for short-term rentals. Now you can rent housing for less than 100 days only if you have a special license.

This license is issued by the Ministry of Culture and Tourism and requires:

• Fire safety and video surveillance system;
• A 24/7 administrator;
• Compliance of the building with hotel standards.

If the license is not obtained, surrendering can result in heavy fines (up to 500,000 liras) and even deportation of foreign nationals. Therefore, if you are considering the purchase of real estate in Turkey for the purpose of short-term rentals - be sure to check the possibility of legalization of such a business. On the Pemlak platform you can find objects in complexes that already have a license to rent.

Taxes and obligations of the owner

When renting out a property in Turkey, the owner is obliged to:

• Submit an annual tax return in March;
• Pay tax on rental income in two stages (March and July);
• Keep records of payments and contracts.

Rental income in Turkey is subject to income tax. Tax rates depend on the amount of income:

• Up to 32,000 liras - 15%
• 32,001 - 70,000 liras - 20%
• 70,001 - 250,000 liras - 27%
• 250,001 - 880,000 lire - 35%
• Above 880,000 lire - 40%

Tax returns are filed annually in March, and tax is paid in two equal installments: in March and July. You should also take into account property tax (0.1-0.6% of the cadastral value), utility costs and possibly management company services (on average 10-15% of income).

How to increase profitability?

If you want to maximize the income from real estate in Turkey, it is important to:

• Choose liquid regions (Antalya, Alanya, Istanbul);
• Furnish the property with furniture and appliances;
• Use aggregators - e.g. Pemlak - for quick publication and promotion of ads;
• Work with trusted property management companies.

What's the bottom line?

Renting an apartment in Turkey is a real way to make money. Despite changes in legislation and licensing requirements, the rental market remains stable and profitable. The main thing is to follow the rules, choose the right property and use trusted platforms.

Pemlak offers a full range of real estate services in Turkey, including apartments, houses, commercial premises and investment projects. We will help you find a property that will not only preserve your capital, but also bring you a stable income.

Invest wisely and earn money with Pemlak!