Investors with properties in Turkey urged to take local advice before letting
More overseas buyers with second homes in Turkey can benefit from rental yields of up to 8% in some locations but they should take advice before embarking on a rental contract.
According to property managers many owners don’t realise that they can make an income from their holiday homes and often end up renting on an ad hoc basis to family and friends and not realising the property’s full potential.
Rental rates are highest in cities like Istanbul but renting out is not as simple as it might seem as local rules and traditions come into play, says property management firm TAM.
‘If an investor has carried out some forward planning, all of the required arrangements will be in place when they purchase a property but what happens if the burden of finding a tenant and managing the property falls on the shoulders of an inexperienced buyer or investor?,’ said a spokesman.
‘Often investors find themselves scratching their heads and spending large amounts of time trying to figure out how to rent out their property in a foreign country. Many give up and end up just renting out their holiday home to friends and family or worse still leaving it empty. That investment property which carried high hopes for a happy investment journey can be derailed at the first attempt,’ he added.
The firm has compiled a rental guide which gives advice on what to do. It says that when researching an area with a view to renting then tenant demand is the most important.
‘If you are about to purchase a property and haven’t looked into local demand then it may be time to investigate how many rental properties there are and in what condition. If it’s a holiday let find out if the area popular with tourists and if you’re looking to attract local tenants see what level of rent can you expect to receive,’ says the guide.
It also points out that local knowledge is invaluable whether you are renting out a property in Istanbul or anywhere else in Turkey and a local property management company can be invaluable in saving time and money as they should know the local market, the expectations of tenants and the kind of rents people are willing to pay for a property.
Good photos are essential to show the property off at its best. The guide says that badly lit pictures or those that have been taken quickly on a mobile phone are unlikely to help attract tenants.
Deciding where to advertise a property can also be important. ‘The Internet is great for advertising a rental property in Turkey but everyone else recognises this too and you will need to advertise your properties on websites receiving a good share of the traffic or that cater for a niche audience,’ the guide suggests.
It says that there is a big difference between letting out an apartment in Istanbul city centre to a long term tenant and a holiday villa somewhere on the coast. ‘A holiday rental will require more advertising to attract a steady flow of tenants and you can expect longer void periods outside the main holiday season. In both cases a property will be more desirable if it is advertised as furnished rather than unfurnished,’ the guide explains.