Renting out property in Türkiye involves several steps, from ensuring legal compliance to finding the right tenants. Here’s a guide to help you through the process:
1. Understand the Legal Requirements
- Title Deed (Tapu): Ensure you have a valid title deed for the property.
- Tax Number: Obtain a Turkish tax number, which is required for property-related transactions.
- Property Registration: Make sure your property is registered with the local municipality and is legal for rental purposes.
- Income Declaration: You must declare rental income to the Turkish tax authorities. Be aware of the applicable income tax rates and deductions.
2. Prepare Your Property
- Maintenance: Ensure the property is well-maintained, and clean, and all utilities are functional.
- Furnishings: Decide whether you will rent the property furnished or unfurnished.
- Market Value: Research the local market to determine a competitive rental price.
3. Advertise Your Property
4. Tenant Screening
- References: Check the tenant’s references and employment status.
- Security Deposit: Collect a security deposit, usually equivalent to one or two months’ rent, to cover potential damages.
5. Draft a Rental Agreement
- Lease Term: Clearly state the lease duration, typically one year, with the option to renew.
- Rent Payment Terms: Specify the rent amount, payment frequency (monthly), and payment method.
- Responsibilities: Outline the responsibilities of both the landlord and tenant, including maintenance, utilities, and repairs.
- Signatures: Both parties should sign the agreement, and it’s recommended to have it notarized for additional security.
6. Register the Rental Contract
- Tax Office: Register the rental contract with the local tax office to ensure compliance with tax regulations.
- Notify Municipality: Some municipalities require landlords to notify them when renting a property.
7. Manage the Property
- Property Management: Consider hiring a property management company Like iCanBuy to handle day-to-day issues.
- Insurance: Obtain property insurance that covers rental use.
8. Taxation
- Annual Tax Return: Declare your rental income annually and pay the required taxes.
- Deductions: You may be eligible for certain tax deductions, such as property maintenance and management expenses.
9. Termination of Lease
- Notice Period: Ensure that the lease agreement specifies the notice period required for termination by either party.
- Return of Deposit: After the lease ends and the property is inspected, return the security deposit minus any deductions for damages.
10. Compliance with Local Laws
- Rent Control: Be aware of local rent control laws that might limit how much you can increase the rent annually.
- Tenant Rights: Understand tenants’ rights under Turkish law, which includes protections against unfair eviction.
- As iCanBuy We Can Help with all Those steps.
