Turkey: Regulation On Short Term Leases Has Been Published

Recent Development

The Ministry of Culture and Tourism ("Ministry") published the Regulation on Regulating the Activities Regarding the Renting of Residential Properties for Tourism Purposes ("Regulation") in the Official Gazette dated 28 December 2023 and numbered 32413. Previously, Law No. 7464 on the Renting of Residential Properties for Tourism Purposes and Amendment of Certain Laws ("Law"), which was enacted by the Grand National Assembly of Türkiye on 25 October 2023, regulated the leasing of residential properties for tourism purposes. With the Regulation published following the Law, important regulations were introduced regarding the application and other procedures for obtaining a permit, the qualifications of residences, the obligations of permit holders and auditing. The Law and the Regulation entered into force on 1 January 2024.

Our newsletter on the Law is available here.

The Regulation is available here.

What does the Regulation introduce?

The main regulations introduced by the Regulation are as follows:

A. Permit certificate procedures

To certify and register residences rented for tourism purposes for a maximum period of 100 days, the Law introduced that it is obligatory to obtain a permit from the Ministry prior to entering into a rental agreement. The Regulation sets out the details regarding applications for the permit. Pursuant to Article 5 of the Regulation, the obligation to obtain a permit is regulated for lessors who own property or limited real rights.

Permit applications are made via the e-government website. Applications must be accompanied by the following documents:

• For real persons, a photocopy of their ID card; for foreign nationals, a photocopy of their passport with their foreign ID number or tax ID number and a signature declaration if it is not in the ID card or passport
• For juridical persons, the tax identification number, trade registry number or MERSIS number, if any, and the application documents required for real persons of the persons authorized to represent
• The current title deed record showing the ownership rights and other real rights on the house and the building permit, if available
• If the house is co-owned, the written statements of the owners who approve the application in a way to ensure the majority of shares and shareholders, and in the case of joint ownership, the above-mentioned documents regarding all owners, their written declaration that they have approved the application, and the written statement of the lessor who is authorized and responsible for the representation and binding of all owners before the Ministry
• If the residence is located in a building containing more than one independent section or in a residential complex, a notarized copy of the decision taken unanimously by the property owners of all independent sections of the residential property that it is deemed appropriate to carry out the activities in question in the relevant residence (This condition is not required for high-quality residences and self-contained residences.)
• If the number of residences for which a permit is requested on behalf of the same lessor in the same building exceeds five, a workplace opening and operating permit and also a notarized copy of the unanimous decision taken by all property owners in the residential complex if the building in question is located in a residential complex
• If the application is made by proxy, a notarized power of attorney signed by the lessor or persons authorized to represent the lessor

If it is determined that false documents have been submitted in the application, the application will be rejected. If the residence is certified, the certificate will be canceled and a criminal complaint will be filed against those who submitted these documents in accordance with the Turkish Penal Code No. 5237.

The provincial directorate must finalize the procedures regarding the applications within 30 days. Applications for high-quality residences are finalized directly by the Ministry. The residences are audited within 30 days from the date the permit is issued. If it is determined in the audit that the residence does not meet the qualifications for the issuance of a permit, an administrative fine of TRY 100,000 shall be imposed and a period of 15 days shall be given to eliminate the contradictions. If the deficiencies are not corrected by the end of the period, the permit will be canceled. If it is determined during the audit that changes/corrections need to be made to the information required in the document, the permit will be updated by taking this information into account. A copy of the permit shall be sent to the Ministry, the relevant local administration, the law enforcement officers responsible for the region where the residence is located and the tax office directorate where the residence is located. The same institutions and organizations will be informed if the permit is canceled or the application is rejected.

The name or trade name of the permit holder, the address of the residence, the date of the permit, the document number starting with the license plate code of the city where the residence is located, and the maximum number of people who can stay in the residence are included in the permit.

As an important note, pursuant to Regulation a permit cannot be issued for the purpose of renting out one or more rooms of a residence that is in use by the lessor for residential purposes and does not have a permit. Therefore, in order to rent one or more rooms of the residence, there must first be a permit issued for the residence.

B. Obligation to hang a plaque

The Law stipulates that the plaque to be issued by the Ministry must be hung at the entrance of the flat to make it known that the residence rented for tourism purposes has a permit from the Ministry. The Regulation sets out the information to be included on the plaque. Accordingly, the plaque shall include the phrase "residence for tourism purposes," the date of the permit, the document number, the permit holder's contact number and the address of the residence.

C. Qualities to be sought in residences

The Regulation sets out the qualifications required for residences to be rented. The residences for which a permit is applied must have at least one bed, a toilet/bathroom, living area and kitchen. There should be cold and hot water, pillows, sheets and towels. In addition, a smoke detector, fire extinguisher and sketches showing the location of the fire-escape stairs must also be available in the residence. The decorations, equipment and devices in the residence must comply with the standards and be clean, well-maintained and in working condition.

Regarding the calculation of residential capacity, the capacity of the residence is calculated so that each bedroom can accommodate two persons. Except for the number of bedrooms, a maximum capacity of two persons is added to the capacity of the residence. Even if the number of rooms is higher, a maximum of 12 people can be accommodated in the same residence. The 12-person capacity limit does not include children under the age of three.

D. Obligations of permit holders

The Regulation sets out the obligations of permit holders.

• Permit holders shall deliver the rented residence to the user in accordance with the qualifications set out above.
• They shall ensure that the residence is regularly cleaned and maintained during each change of user, pest control is carried out and relevant records are kept.
• They shall notify the user in writing or online of the rules adopted by the site or building management.
• They shall hang the plaque prepared by the Ministry at the entrance of the residence.
• They shall fulfill their obligations under the Law on Identity Notification No 1774 and the Law on the Protection of Personal Data No 6698.

The Regulation also prohibits renting out the rooms of a residence with a permit to different persons under separate agreements.

E. Promotion activities

The Regulation also introduces additional regulations on promotion activities.

Pursuant to Article 11 of the Regulation, the promotion of residences shall include accurate information on consumer rights and shall not include promotions that may be misleading or damage the country's tourism.

Pursuant to Article 9/2 of the Regulation, a copy of the permit must be published in a legible manner in all media where the residence is promoted and marketed. In addition, the following points must also be included in the promotions:

• Location of the residence, occupant capacity, on which floor it is located, whether there is a balcony/terrace, number of bedrooms, living room/living area and bathrooms/toilets, whether the beds in the rooms are double or single, furnishing materials, cooking, food preparation, cold storage, hot/cold beverage preparation, whether there is service equipment, equipment such as washing machines, dishwashers, televisions, hair dryers, heating and cooling systems, sports units in private or shared use, spa, swimming pool, parking facilities, accessibility arrangements for access to and within the residence, information such as whether pets are allowed, whether wired/wireless internet is available, and information on other services offered
• Site or apartment management rules
• Check-in and check-out dates
• Information on whether a cleaning service is provided

F. Audit and the Ministry's Authority

It is obligatory to maintain the qualities of the residences for which a permit has been issued. To this end, it is stipulated that the residences will be audited at least every two years from the date the permit is issued. The personnel assigned by the relevant governorates will carry out the audits of the residences holding a permit. If any violations are detected as a result of the audits, the penalties stipulated in the Law will be applied.

In addition to its audit authority, the Ministry is authorized to request all kinds of information and documents to ensure compliance with the Law and the Regulation and to eliminate any doubts and problems that may arise in practice.

Lastly and importantly, the Ministry is entitled to serve an online notification to intermediary service providers for the removal of the promotion and marketing content regarding unpermitted residences.

Conclusion

As a reflection of the increase in daily rentals, the Law was published, and then the Regulation on the implementation of the provisions of the Law was published. The Regulation clarifies the details of the permit requirement in the Law and sets out the permit application process. In addition to the regulations in the Law, important obligations have been introduced regarding the qualifications and promotion of residences. As the Law and the Regulation entered into force on 1 January 2024, it is important for those operating in this field to follow the relevant regulations, obtain the necessary permits and comply with the obligations. In this context, it is mandatory to comply with the regulations in the Regulation regarding applications for permits, the obligation to hang plaques, the qualifications to be sought in residences, the obligations of permit holders, and intermediary and promotion activities.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.