Renting Out Your Property in Turkey
Turkish tenancy law is strongly protective of tenants. A landlord cannot simply end a lease when it expires; eviction requires one of the grounds set out in the Code of Obligations, and most of them run through the courts. Annual increases are capped by reference to the consumer price index. Short-term holiday letting is separately regulated and requires a permit — letting without one carries administrative fines.
📌The lease does not end when the term ends
This is the structural point foreign landlords find hardest to accept. A one-year lease does not terminate on its anniversary. If the landlord does not have a statutory ground, the contract renews automatically. The tenant may leave by giving notice; the landlord generally may not. Termination by the landlord requires a specific ground — need of the property for the landlord or close family, reconstruction requiring vacancy, the tenant's default after two written warnings in a rental year, or the passage of ten years of extension under the rules on that. Each ground has its own notice requirements and time limits, and using the wrong one loses the case.
📌The annual increase is capped
Rent increases in renewal years are limited by reference to the twelve-month average of the consumer price index. An agreement fixing a higher automatic increase is not enforceable above that ceiling for the renewal period. A landlord who considers the rent far below market may bring a rent determination action (kira tespit davası), and where the lease has run five years the court sets a rent according to market conditions rather than the index. The action has its own timing rules; bringing it late means the new rent applies from a later period.
📌Short-term and holiday letting
Letting a residence for periods under 100 days is subject to a separate permit regime. In practice this means obtaining a tourism-purpose residence permit certificate from the Ministry of Culture and Tourism, and in a multi-unit building the unanimous written consent of all the other independent-section owners is required. In a Bodrum site this is frequently the obstacle: one objecting neighbour is enough. Letting without the certificate exposes the owner to administrative fines that escalate on repetition, and platforms are required to verify the certificate.
📌Deposit, condition and handover
The security deposit is capped at three months' rent and, where it is money, the law contemplates it being held in a bank account released with both parties' consent or a court decision. In practice deposits are often held directly by landlords, which produces most end-of-tenancy disputes. Two things protect you: a signed inventory and condition report at handover with dated photographs, and meter readings recorded on the same document. Without them, the burden of proving damage beyond ordinary wear falls on the landlord and is difficult to discharge.
📌Tax on rental income
Rental income from Turkish property is taxable in Turkey whether or not the owner is resident, and an annual declaration is required. There is an exemption threshold for residential rental income, and expenses may be deducted either on a lump-sum basis or on actual documented cost — the choice binds you for a period, so it is worth making deliberately. Payments above a threshold must pass through a bank or postal system; cash rent creates a penalty exposure for both sides. Double taxation treaties determine how the income is treated in your country of residence.
💡Practical points
- Put it in writing. Oral leases are valid but nearly impossible to enforce on terms. The written contract should identify the parties, the term, the rent, the deposit, the increase mechanism and who bears which costs.
- Two warnings, one year. Eviction for non-payment requires two written default notices within the same rental year; sending them correctly, and proving service, is what makes the later case work.
- Mediation first. Disputes arising from a tenancy relationship are subject to compulsory mediation before a court action can be brought. Filing without it means dismissal on procedural grounds.
- Managing agents. If an agency manages the property, the authority you grant should be specific. A general power of attorney allowing an agent to sign leases and receive rent is a substantial risk when you are abroad.
- Common charges. Unless the lease says otherwise, the site's capital and major-repair contributions remain the owner's; only day-to-day charges are typically passed to the tenant.
I handle written correspondence in English without difficulty — email, WhatsApp messages, contracts and documents. My spoken English is limited, so for anything detailed I prefer to work in writing, or to hold the call with an interpreter present. This affects only the channel, not the work itself: filings, hearings and correspondence with Turkish authorities are conducted in Turkish in any event.
This page is general information, not legal advice. It does not create an attorney–client relationship. Turkish law changes and outcomes depend on the facts of each case. For your own situation, please get in touch: +90 532 390 48 06 (WhatsApp) · mert@avukatmertcelik.com
written by
Av. Mert Çelik
Muğla Bar Association · No. 2039 · Bodrum · since 2018
NoteThis page is general information only; every matter has its own facts. Our office is in Bodrum, Muğla.
This page is for general information only and does not constitute a legal opinion or the provision of legal services. Turkish legislation changes; please consult a lawyer about your current situation.