Turkey has cemented its status as one of the most popular tourism destinations in the world. A large number of tourists arriving in the country creates an increased demand for rental housing, so many investors prefer to invest in local real estate in order to receive income from renting it out to renters in the future. This article will be useful for those who have decided to enter this field. Let's take a look at the top 10 aspects of buying and managing rental homes.
Rule 1: Suitable Choice of Complex Location
When planning investments in housing for further rent, it is important to choose a property in such a way that its location is as convenient and in demand among tourists as possible. For example, one of the most popular regions today is Alanya. It can boast of several advantages at once: Long tourist season; Warm climate; Gently sloping entrance to the sea and good beaches; Developed infrastructure; A variety of different primary and secondary properties; Comparatively affordable cost of housing. The region is close to Gazipaşa-Alanya Airport, which receives a large number of domestic and foreign flights on a daily basis. It is worth noting that there are reliable and proven developers in Alanya, offering modern residential complexes that have already been commissioned, as well as houses that are still under construction. It is possible to buy real estate at an early stage of construction and invest profitably to generate further income.
Rule 2: Choosing the Right Residential Complex
It is very important to pay attention to the residential complex in which you plan to buy an apartment or villa. For a successful investment of money with further profit, the following aspects should be taken into account: A modern level of residential complex with a developed infrastructure; Fitness center, swimming pool, playgrounds and children's playgrounds in the complex; The presence of infrastructure facilities nearby and the location on popular streets. Some buyers prefer residential complexes during the construction process - you can buy an apartment in them much cheaper, and sell it at a higher price after commissioning. A lower price of housing will also be beneficial for those investors who plan to rent out their living space. However, in such cases, you should choose a developer especially carefully to avoid possible unpleasant consequences.
Rule 3: Market Analysis and Identification of Aspects of Tourist Rentals
It is important to pay attention not only to the region, but also to the suitable living space. For example, for a successful and profitable rental, apartments must meet some requirements: Have a layout with one or two bedrooms (1 + 1 or 2 + 1) - such housing is in the greatest demand; Be located in a reliable residential complex; The distance from the sea should not be more than 500 m. Apartments and houses that meet these criteria have the greatest chances of profitable renting and profit.
Rule 4: Choosing the Right Rental Type
When planning to rent out housing, you should decide on its type: short-term or long-term. In the case of short-term rentals, you can make a good profit during the tourist season, and for a long time, you can be sure of a constant influx of funds from tenants who rent housing for several months or even years. However, according to Turkish law, renting out real estate for a short period of time is considered almost forbidden for private individuals. There are no such difficulties with the long-term option - it is available for both private owners and companies.
Rule 5: Find People Responsible for Housing Management
The purchase of real estate in itself does not mean a successful investment. This is only a preparation for further steps. One of the most important stages of this process is the proper maintenance and management of housing. There are two ways to do this: on your own or by transferring responsibility for the apartment to a real estate agency. If you manage the property yourself, you can get a higher income, however, it requires a good knowledge of the Turkish market, experience and some time. Since most investors do not have enough time and in-depth knowledge of the market to be present in the country, this option is not acceptable for them. It is most convenient to transfer the property to the management of a trusted real estate agency - specialists with extensive experience in the field will take care of the entire process of finding tenants, signing documents and maintaining the living space.
Rule 6: Estimating Profit Prospects
When preparing a real estate investment plan, it is important to estimate the future profitability. To do this, they take into account the cost of the apartments, the cost of their maintenance and the profit received. The average yield of renting out Turkish housing for a short term is about 5-10% and depends on many components, while for a long term it is 4-5%. Profitability is influenced by the location of housing, its layout and equipment, as well as other factors. In general, the more rooms an apartment has, the more expensive it will be to rent. Premium-class living space is taken into account separately - prices for it will always be higher than similar economy real estate.
Rule 7: Know Your Local Laws
In accordance with the Turkish laws of the real estate market, all tenants are obliged to register with the police station – they are assigned a code, after which they need to obtain an IP address from the telecommunications company. It will be possible to register residents only with the help of this IP. Moreover, the owner of the property is obliged to pay income tax on time, for which it is necessary to register with the tax authorities. Due to the many features and legal aspects of Turkish legislation, most foreign investors prefer to put the property at the disposal of realtors - having found a reliable agency, you can entrust it with all the paperwork and not think about the details of housing management.
Rule 8: Calculating Expenses and Expenses
Usually, when renting out the property, the owner of the dwelling bears the following costs: Income tax of at least 15% of the taxable amount minus 15% for the repair and maintenance of the apartment. Utility bills and aidat – their amount depends on tariffs, the level of elite of the complex and the expenditure of resources according to meters. If you entrust the management of housing to a special agency, you can free yourself from the hassle of paying bills, finding tenants, obtaining documents and other aspects. The only obligation of the owner will be to pay income tax on the profit received. The cost of the management company's services is about 50-200 euros or 20% of the profit received. It can also remain fixed or depend on income.
Rule 9: Conclusion of the Contract
Regardless of the option of managing the apartment, it is necessary to competently conclude the appropriate contract. He can sign with the agency or directly with the tenant if the owner manages his apartment himself. It is very important to take into account the following aspects in the agreement: Rental price; A list of available equipment, furniture and other property, preferably with photographs; Living conditions in the living space; Realtor's responsibility (in agreement with the agency); The party paying the electricity, gas and water bills; Restrictions for tenants (for example, accommodation with children, pets, noisy parties, tobacco smoking, etc.); Deposit Refund and Cancellation Policy. It is important to take a very responsible attitude to the conclusion of the agreement and fully describe all the rights, obligations and prohibitions of the parties.
Rule 10: Preparing the Living Space for Tenants to Move In
In order to get more profit from renting out apartments, you should take care to make your offer one of the most interesting on the market. In addition to a good location, infrastructure and other external aspects, you can pay attention to the availability of suitable furniture and appliances, make sure that all devices are working, provide the right amount of toiletries, etc.
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