7 Crucial Requirements for Legally Renting Your Property on Airbnb in Turkey
Soaring tourism dreams, grounded by legal requirements
7 Crucial Requirements for Legally Renting Your Property on Airbnb in Turkey
Imagine waking up to a sudden change in the law that could turn your thriving Airbnb business into a legal nightmare. That's precisely what happened when Turkey introduced Law No. 7464, regulating short-term rentals for tourism purposes. As a property owner, you might feel overwhelmed by the new requirements, from obtaining permits to navigating unanimous consent from building owners. But fear not! In this article, we'll dive deep into the crucial aspects of the new law that most websites overlook, guiding you through the complexities and helping you adapt to these changes with confidence. Get ready to learn how to keep your Airbnb rental running smoothly and legally in Turkey's evolving landscape.
Understanding the New Airbnb Law in Turkey: What Property Owners Need to Know
Turkey recently introduced Law No. 7464, which regulates the short-term rental of residential properties for tourism purposes. The law aims to establish procedures and principles for renting out homes to individuals or legal entities. It covers general rules, permit issuance, administrative sanctions, and the legislation that short-term rentals must follow. The law applies to rentals of up to 100 days at a time. Key terms include the permit, permit holder, property owner, residence, user, short-term rental, and provincial governorship. Property owners must understand these fundamentals to legally rent out their homes on platforms like Airbnb.
Mandatory Permit for Short-Term Rentals: Obtaining the Tourism Rental Permit
To legally list a property on Airbnb in Turkey, owners must obtain a tourism rental permit before entering into a rental agreement. The Ministry of Culture and Tourism is authorized to issue permits and may delegate this authority to provincial governorships. Permit fees are determined by the Ministry. To be eligible, owners must submit a unanimous decision from all condominium owners approving short-term rentals in the building. The permit and a plaque issued by the Ministry must be displayed at the property entrance. Failure to obtain a permit can result in fines and legal consequences.
What Happens If You Rent Your Property on Airbnb Without a Permit in Turkey?
According to the new law, renting out a property on Airbnb without obtaining the required tourism rental permit can result in significant fines. For each property rented without a permit, the owner will be fined 100,000 Turkish Lira and given 15 days to obtain the permit. If they continue renting without a permit after this period, the fine increases to 500,000 Turkish Lira, and they are given one more 15-day period to comply. Failing to obtain a permit after these warnings can lead to a fine of 1,000,000 Turkish Lira.
Serene waters conceal strict permit application process
Unanimous Consent from Building Owners: A Key Requirement for Airbnb Rentals in Turkey
To obtain a tourism rental permit for a property, the owner must submit a unanimous decision from all condominium owners in the building approving short-term rentals. This requirement applies to the specific building where the rental unit is located, and a copy of the permit must be provided to the site management. However, high-quality residential complexes with certain amenities and a provision allowing short-term rentals in their management plan are exempt from this requirement.
Limitations on the Number of Units per Building for Airbnb Rentals in Turkey
In buildings with more than three independent units, a maximum of 25% of the units can be issued permits under the same owner's name. If an owner wants to obtain permits for more than five units in the same building, they must also provide a business opening and operating license and the unanimous approval decision from all condominium owners if the building is part of a residential complex.
Responsibilities of Airbnb Hosts in Turkey: From Guest Registration to Tax Obligations
Airbnb hosts are responsible for registering their guests under the Identity Notification Law, with the permit holder considered the responsible person for this obligation. They must also submit proof of payment for the tourism tax within the period determined by the Ministry. Failure to provide this document during inspections can result in a fine of 50,000 Turkish Lira.
Prohibited Practices for Airbnb Hosts and Guests in Turkey
According to the law, it is prohibited for guests who rent an Airbnb property from the permit holder to sublease the property to third parties under their own name. Additionally, tenants who rent a property for residential purposes are not allowed to rent out the property for tourism purposes to third parties under their own name. However, if the guest is a legal entity, they may allow their own personnel to use the property they have rented for tourism purposes. Engaging in these prohibited practices can result in an administrative fine of 100,000 Turkish Lira for each contract.
The Role of Travel Agencies in Airbnb Rentals: Regulations in Turkey
If the tourism rental activity is carried out by someone other than the permit holder, these rentals can only be made through (A) group travel agencies licensed under the Travel Agencies and Association of Turkish Travel Agencies Law No. 1618. Unlicensed properties must be rented through these authorized travel agencies. The law does not provide further details on the specific responsibilities of travel agencies in Airbnb rentals.
Transferring or Terminating an Airbnb Permit in Turkey: What Property Owners Should Know
If the permit holder changes due to a legal transaction other than inheritance, the new owner must apply for the transfer of the permit within 30 days from the date of registration in the land registry. Failing to do so within the additional 30-day period provided after the implementation of the relevant administrative fine will lead to the cancellation of the permit. The permit will also become invalid if the individual permit holder passes away and the heirs do not apply within three months of the date of death, or if the legal entity permit holder is dissolved. However, the rights of existing guests will continue until the end of their contract period, even if the permit is canceled.
Historic clock tower overlooks Turkish Airbnb properties
Inspections and Enforcement of Airbnb Laws in Turkey
The Ministry of Culture and Tourism has the authority to conduct inspections on tourism rentals and may also exercise this authority through the provincial governorships if deemed necessary. The law does not provide specific information on the role of provincial governors in enforcing the law or the penalties for obstructing inspections or providing false information.
Adapting to the New Airbnb Law in Turkey: A Guide for Existing Hosts
Timeline for existing hosts to obtain the tourism rental permit: Existing Airbnb hosts in Turkey must apply for the tourism rental permit within one month from the effective date of the new law. The application process must be completed within three months from the application date. Hosts who fail to comply with this requirement will face penalties under Article 4 of the law.
Consequences of failing to comply with the new law: Existing hosts who do not apply for the tourism rental permit within the specified timeline will not be allowed to continue their rental activities. However, the rights of existing guests will continue until the end of their contract period.
Grandfathering provisions for existing bookings: The law does not provide specific information on grandfathering provisions for existing bookings made before the new law came into effect.
The Future of Airbnb in Turkey: Potential Impact of the New Law
Expected changes in the short-term rental market: The new law is likely to lead to changes in the short-term rental market in Turkey, as hosts will need to obtain permits and meet specific requirements to legally operate on platforms like Airbnb. This may result in a reduction in the number of available listings, especially in buildings where unanimous consent from all condominium owners is required.
Potential benefits for the tourism industry and local economies: The law aims to regulate the short-term rental market in Turkey, which could potentially benefit the tourism industry and local economies by ensuring a level playing field for all accommodation providers and improving the quality of the rental properties. However, the law does not provide specific information on these potential benefits.
Dealing the Legal Complexities with Confidence
As a property owner in Turkey, understanding and complying with the new Airbnb law is crucial to avoid legal issues and financial penalties. The requirements for obtaining a tourism rental permit, obtaining unanimous consent from building owners, and adhering to guest registration and tax obligations can be complex and overwhelming.
If you find yourself in need of legal assistance to navigate these new regulations, consider reaching out to experienced lawyers who specialize in short-term rental laws in Turkey. Atlas Legal Partners, based in Istanbul, is well-equipped to help foreigners and local property owners alike in understanding their rights and obligations under the new law.
By seeking the guidance of legal professionals, you can ensure that your Airbnb rental operates smoothly and legally, protecting your investment and minimizing potential risks. Have you encountered any challenges in adapting to the new Airbnb law in Turkey, and how do you plan to address them?
