Renting Out Your Property in Turkey: A Guide for Investors 2025:

Renting Out Your Property in Turkey: A Guide for Investors 2025:

Turkey in the last decade has experienced a huge boom in the Real Estate Market with increasing demand for purchasing properties, especially from foreign investors looking for a stable market and High Capital Appreciation. In addition to investors, many families chose Turkey as their second home by buying a summer home to spend their holidays or moving to Turkey as a new destination.

 To help first-time buyers and investors, we create a guide to help you understand and know how to rent your property in Turkey without any trouble.

Why Invest in Rental Property in Turkey?

High Rental Yields:

Turkey’s population is around 86 Million according to the latest statistics in 2024 creating a huge demand for housing, of course, big cities like Istanbul (15 M), Ankara (5 M), and Izmir (3 M) face a higher demand for Rental apartments than smaller cities which increase the Rental Yields in those regions. The Rental Yield in Turkey is around 5-9 % making Turkey a hot destination for smart investors.

Growing Tourist Industry:

You cannot deny that Turkey is a magnificent country with breathtaking nature, diverse culture, and rich history. The tourism sector in Turkey brings a lot to the table with Millions of tourists visiting the country each year, further boosting the rental market.  These tourists often seek short-term rentals, locations close to touristic areas, and great amenities.

Favorable Location:

Turkey is a meeting point between Europe and Asia, especially Istanbul, a city that straddles two continents. Easy to access from Asia and Europe plus Turkey offers a unique blend of cultures that welcomes everyone. This attracts a diverse pool of potential tenants, both local and international.

Choosing the Right Property to Rent:

Location:

In Real Estate it’s Location, Location, Location. The location of your property can make or break your investment, think about the type of investment you are looking for. 

• For short-term Rental, you should buy an apartment close to tourist attractions such as Sultanahmet, Fethiye, or Antalya. 
• For long-term Rental, you can buy a property near the city center or neighborhoods with close to transportation hubs, and shopping centers such as Beşiktaş, Maslak, or Chankaya.

Property Type:

Knowing which type of property to buy is based on your investment strategy, Long-term or Short term.

• For the Short term: Studios, Villas, two Bedroom apartments are what you are looking for.
• For the long term: One Bedroom and Two Bedrooms are your ideal choice and are suitable for single-family, your targeted consumer.

Amenities:

For a higher monthly rental income we advise investors to purchase apartments in a building complex with great amenities and facilities such as 24/7 security, a gym, a pool, and a garden Excellent amenities can easily increase the rent for both short and long-term Rentals.

Setting the Right Rental Price:

Market Research:

Before offering your apartment for rent, you should research the market price according to your neighborhood, check properties similar to yours on online platforms, and ask local landlords

Consider Property Condition:

Your pricing strategy needs to factor in the condition of the property, unfurnished, semi-furnished, or fully furnished. New, old, or renovated apartment. New and Fully furnished apartments create a good rental yield in the market of more than 7%.

Rental Type:

Apartments, Villas, Studios, or commercial units? 

Villas and commercial units have the highest rental yield but they are the hardest to find the ideal tenant, while apartments and villas have a high demand with good ROI and rental income.  

Finding Tenants and Managing Your Property:

Property Management Companies:

The easiest way to find tenants for your property is to ask the real estate agency that assists you in purchasing the apartment to manage it for a service fee. And if the agency doesn’t offer this service you can check different Property management companies and choose the one that matches your requirements and needs.

Local realtor:

Ask local realtors (emlakçı in Turkish) in the neighborhood to rent your apartment for long-term rental. Use their network to find your tenants. This way is the traditional method.

Online Platforms:

For short-term rentals, Airbnb and Booking.com are your best friends, post a listing on rental platforms and rent your properties as a vacation home

Legal and Tax Considerations:

Tax Registration:

For Foreign owners and investors, they must obtain a tax identification number from the local tax office to be permitted to rent their properties and to register it 

Legal Compliance:

Consult a lawyer before renting your apartment to be aware of Turkish tenancy laws.

Taxation:

All property owners including foreigners need to pay income taxes on their Rental income. 

Maximizing Your Rental Income:

Invest in High-Quality Furniture and Appliances:

With this simple trick, you can double your rent, and buy high-quality furniture and appliances such as a dishwasher, air conditioning, and kitchen tools.

Location:

For high annual rental income, purchase your investment property in big cities such as Istanbul with its booming population and high demand for housing. Try to buy properties close to the city center with close to transportation stations, and shopping malls. For short rentals pick apartments close to the touristic attractions to encourage tourists to rent them.

Building Amenities and Services:

To have a good monthly rental income buy an investment property in a building complex with excellent amenities and facilities such as 24/7 security, a gym, a pool, and a garden. Great Amenities will increase the rent for both short and Long-term Rentals

Avoiding Common Mistakes:

Tenant:

To avoid having any issues especially legally with your tenant ask for a criminal record and ask for a security deposit. Keep a record of payments of the rent and put everything in writing. 

Setting Unrealistic Rental Expectations:

 Conduct thorough market research to understand realistic rental yields for your property type and location. Don't overestimate potential income and set a price that discourages tenants.

Maintenance issues:

3. Don’t ignore maintenance issues! Waiting on fixing issues can cause more damage which will increase the repair cost and it even may drive your tenant to move out. So take care of your investment and maintain its condition.

Ignoring Legal Requirements:

Familiarize yourself with Turkish tenancy laws, tax regulations, and registration procedures. Failing to comply can lead to legal trouble and financial penalties.

Conclusion: Renting Out Your Property in Turkey:

Renting out property in Turkey offers a compelling opportunity to generate steady income and benefit from potential capital appreciation. By understanding the market dynamics, choosing the right property, setting competitive rates, and managing your investment effectively, you can maximize your returns and achieve your investment goals