New Rules on Short-Term Leases
New Rules on Short-Term Leases
New regulations for short-term vacation rentals were introduced in the Law No. 7464 on Renting Property for Tourism Purposes and Amendments to Certain Laws [“Law”] published in the Official Gazette dated 02.11.2023 and numbered 32357. The Law includes important provisions regarding the conditions, obligations, and corresponding penalties in leases lasting up to 100 days.
Permit Obligation and the Conditions
In order to register property to be rented for tourist accommodation and to enable short-term vacation rentals of property for a maximum period of 100 days, it has now become mandatory to obtain a permit from the Ministry of Culture and Tourism [“Ministry”] before concluding the agreement.
To maintain order and to prevent possible disputes between condominium owners, a decision taken unanimously by all condominium owners must be present in order for the apartment to be the subject of a permit for vacation rentals. However, in a residential complex with several independent sections, only the unanimity of the condominium owners of the relevant building will be required.
In addition, in buildings with more than three independent sections belonging to the same person, the issuance of permits is subject to certain limitations in order to prevent the building from being converted into an unregistered hotel. In such buildings, a permit on behalf of the same lessor can only be issued for a maximum of 25% of the independent sections, and if the number of independent sections exceeding this rate is more than five, a business licence will be required.
However, high-standard property (i.e., "residences") regulated in accordance with the Condominium Law No. 634, where short-term rental activities are permitted in the management plan and where services such as reception, security and daily cleaning are provided, will not be subject to the aforementioned rules.
Sanctions in Case of Violation of the Rules
The Law provides an administrative fine of 100,000 Turkish Liras for the first violation and a 15-day period for obtaining a permit for the person who rents their property without a permit in violation of the Law. If the rental activity continues without obtaining a permit at the end of this period, a penalty of 500.000 Turkish Liras will be imposed and a period of 15 days will be given again in order to address the violation. If a permit is not obtained within this period and the activities continue, the administrative fine will increase to 1.000.000 Turkish Liras.
An administrative fine of 1.000.000 Turkish Liras will also be imposed on persons who rent out the same property more than four times within one year from the date of the first contract, even if they make a lease contract for more than one hundred days each time.
In the event that the vacation rental is used in violation of public order, public security and public morality, the permit will be cancelled.
Other Significant Aspects
- Plaque Obligation: In order to ensure that it is understood that the property has a permit, it is obligatory to hang the plaque to be prepared by the Ministry at the entrance of the residence.
- Sublease Prohibition: In order not to lose control and supervision over the property rented as vacation rentals, sublease agreements are prohibited.
- Identity Notification Obligation: Provisions of the Identity Reporting Law No. 1774 will also be applied to the property for which a vacation rental permit is issued. Accordingly, the entry, exit, and accommodation status of persons will be recorded, and their identity information will be reported to the law enforcement authorities, just like in businesses such as hotels.