Is this the end of rentals in Turkey ?

[onelove]

http://kalkan.turkishlocalnews.com/portal/kalkan-news/fethiye-news/512427-updated-legislation-giykimbil-system-for-short-term-property-rentals-in-turkey

Linkback: https://www.enjoykalkan.com/forum/index.php?topic=13665.0

[Mick07413]

I've just read the article.

Could someone explain what I need to do please.

I'm a new owner with no intention of renting out. Property is for use of my family.

Seems the fees are harsh if not renting out. Harsh also if you are.

[onelove]

Hi Mick,

Best advise I can offer you is to keep an eye on KTLN. No doubt TC will write a comprehensive and factual article
on this soon.

[caradog]

The article (and legislation) refers to rental property so won't apply to you if you are not renting.
For rentals, the annual costs seems to be 37000ytl with an additional 5000ytl in the first year. As this will far exceed our rentals then if it is correct then obviously there will be no point in renting out. No doubt if they start to enforce this and see the effects on the local economies one would think there will be a rapid change of mind.

[Mick07413]

I have no problem informing police of family/friends visiting us but think our circumstances of not renting the fees would be extremely harsh as with a small business. Unfair to punt a villa on same footing as a hotel.

[kalkan4eva]

I'm sure this will have an adverse affect on tourism and buy-to-let property sales throughout Turkey.

[Blue Lizard]

Seems to be Turkeys Government want your money but don't want you there....the fall out with Russia cost them a packet and now the Dutch threatening to boycott turkey? you would think they would embrace tourism

[alantj]

If this report is accurate the annual costs will be £8,240, making renting out completely unaffordable (even ignoring the fact that this year our enquires are down by over 90%).

For us, it would mean taking our property of the market this year and having a long think about what to do next. Selling is not much of an option at the moment, a friend has being trying to sell her very nice and central 2 bed apartment for a year and has only received two offers, both under £30,000.   


Can anyone confirm the numbers in the report, unless the government has decided to shut down the rental market I cannot believe they are correct   

Business start up costs      5,000TL

Ongoing monthly costs      3,000TL
Ongoing annual costs        1,128TL
---------------------------------------
Total annual cost              37,128TL   £8,250

[caradog]

I have no problem informing police of family/friends visiting us but think our circumstances of not renting the fees would be extremely harsh as with a small business. Unfair to punt a villa on same footing as a hotel.

But as I said earlier if you are not renting it doesn't apply to you.

[caradog]

If this report is accurate the annual costs will be £8,240, making renting out completely unaffordable (even ignoring the fact that this year our enquires are down by over 90%).

For us, it would mean taking our property of the market this year and having a long think about what to do next. Selling is not much of an option at the moment, a friend has being trying to sell her very nice and central 2 bed apartment for a year and has only received two offers, both under £30,000.   


Can anyone confirm the numbers in the report, unless the government has decided to shut down the rental market I cannot believe they are correct   

Business start up costs      5,000TL

Ongoing monthly costs      3,000TL
Ongoing annual costs        1,128TL
---------------------------------------
Total annual cost              37,128TL   £8,250

That's the way I read it. Obviously either something was lost in translation or renting will be a total waste of time! Interesting to see what will happen. Apart from the current selling problems this would make it even more difficult as many people wouldn't want to buy something which they couldn't get an income return from.

[kalkan4eva]

Also, not much of a lead-in time to get everything in order....

[Bdancer]

These new rules sound like complete madness! With tourism already suffering so much why would you try to make it worse, or is it some sort of bizarre thinking by the government to drive tourists to stay in hotels? If it does happen we will not be renting as it just would not be worth it and I suspect many others will feel the same. 

[Charlie]

And if the figures don't work and you decide to stop renting out and not set up as a business what do you do with people who have already booked for this year?  There is no run in time to this at all as it kicks off from June 17.

[DRBD]

Some villas that are rented out  here are almost the size of a small hotel/pension, they have 5 or more bedrooms & are sleeping large numbers, so perhaps not quite so unfair. If villas are being rented out best part of the holiday period  for payment then it's a business.

There are considerable new rules for hotels brought recently into force mostly safety issues & very costly.

[alantj]

Some villas that are rented out  here are almost the size of a small hotel/pension, they have 5 or more bedrooms & are sleeping large numbers, so perhaps not quite so unfair. If villas are being rented out best part of the holiday period  for payment then it's a business.

There are considerable new rules for hotels brought recently into force mostly safety issues & very costly.

You can view letting out a villa to help with running costs as a business but, if the report is correct, it won't be going forward. We have been renting out for 10 years and even in our best ever year our net income would not have come close to covering this cost.

Also we already pay tax on any rental income, so what is this additional cost actually for. 

[Mick07413]

I emailed the guy who wrote the article in Fethiye Times and he emailed me back offering to introduce me to his friend who was setting up a 'Cooperative ' as this would reduce the running costs. There may be a lot more to this article. I've spoken to the maintenance company of our apartments and their advice is WIT until there is a difinative answer. This seems to be the advice from numerous people including the editor of KTLN

[Little Missy]

All well and good asking us to wait Mick, but time is definitely not on our side.  What makes me mad is the amnesty offered for owners who have not registered to pay tax on their rentals (I have and paid what was due).  I would like to ask a question when I inform the tax office that I will no longer be renting my apartment.  Does the quote of 5 years of the government monitoring my property,  to make sure I am not operating rentals under the radar, still apply if it were sold to someone else?  If it does then who on earth would buy it, knowing that?   

[caradog]

I emailed the guy who wrote the article in Fethiye Times and he emailed me back offering to introduce me to his friend who was setting up a 'Cooperative ' as this would reduce the running costs. There may be a lot more to this article. I've spoken to the maintenance company of our apartments and their advice is WIT until there is a difinative answer. This seems to be the advice from numerous people including the editor of KTLN

There's a nice little earner for him. Perhaps he'll set up a limited company as well for 5000ytl.

[Mick07413]

That's the impression I got.

[brian j p]

No rental market = no Kalkan  as all the businesses will close!  . We have 1 booking  this year and 2 bookings last, as with many it simply  helps with the maintenance costs nothing more.  In fact it does not cover   running the pool and having cleaners etc  on retainers . We pay £!300 per annum before anyone steps through the door ,  it covers  pool filled at beginning of season and gardening, everything else extra,  but to be fair we use  the villa twice a year  so gardening and pool filling is for us as well  , We were already considering not renting out before this latest news. We love Kalkan as all  do on this  forum and more than happy to simply use the villa for ourselves twice or  thrice a year , and we intend to spend  a lot more time when we retire ,  maybe 4-6 month per year  with residency in mind , However no rental market at all will be the end of Kalkan as we know it , so that would complexly turn our longer term plans upside down , We are out in May for a few weeks and will be looking for further advice from our accountant who pays our rental tax , albeit very small amount , we basically pay for the paperwork doing  as  previously stated  we only rented  out a few weeks  last season