The perils of renting out property have come back into sharp focus this week with news that a Russian in Antalya bought 80 flats and then began renting them out on a commercial basis.

Voices Newspaper spoke to Didim Tourism Association Board Member and hotel owner Mustafa Yüksel about the issue and what to do to stay within the law if you happen to rent your property.

National reports said that the Russian in Antalya was using 80 flats he bought from the same site for commercial purposes by renting them daily. It is alleged he evades taxes by renting the houses he bought from a seaside site on a daily rental, unrecorded, only to Russian citizens.

Kaan Kavaloğlu, Chairman of the Board of Directors of the Mediterranean Touristic Hoteliers and Operators Association (AKTOB), stated that hoteliers in the region are upset due to this situation.

Emphasizing that they submitted a report to the Ministry of Culture and Tourism to convey the situation in question, Kavaloğlu said: “We examined the examples in Portugal, Italy and Spain. We also presented the report we prepared to the Ministry of Culture and Tourism. An appropriate law text will be prepared together with stakeholder ministries by October.”

Mustafa Yüksel

Mr Yüksel spoke to Voices about the impact of the daily rental business on tourism and how it should be carried out in accordance with the law. He said: “I do not think the daily rental will harm hoteliers. However, it must be done in a registered manner.”

Penalty for unregistered daily rental

In Didim, as in many holiday regions, daily rental business is common. Although unregistered rentals were common in the periods when tourism was just beginning, there was a great decrease in unregistered rentals due to the heavy penalties.

Yüksel said: “In 2017, the penalty for renting daily without notifying the finance department was 10,000 liras. Today the penalty is 80,000 liras.”

Stating that, as a hotelier, he is not disturbed by the daily rental business, Yüksel said, “Hoteliers say that they are not very happy with the daily rental business because they are worried they are losing their customers. However, it is necessary to understand every holidaymaker has a different understanding and not everyone wants to stay only in a hotel or only at home.

“While some people prefer to stay in a hotel to avoid having to deal with household chores, some prefer to rent a house to feel at home. The bottom line is that no one is ‘stealing’ anyone’s customers. After all, both types of vacationers bring income to the local tradesmen.”

On the other hand, Yüksel reminded that an unregistered daily rental business involves a crime such as tax evasion and has significant risks for homeowners. “The tax costs are not very high. However, the penalty is quite high and it is pointless to take this risk. Also, in cases of natural disasters and bad events such as theft and murder, it is important to be able to identify the people who rented your house,” he said.

“It is important to be registered not only to avoid punishment but also to be able to report the person staying in your home to the police departments and to protect yourself.”

What should you do to rent your house daily?

Stating the procedures that local and foreign citizens who do daily rental business are simple, Yüksel said: “It is enough to register with the Tax Office and the Police. Information can be obtained from the Tax Office and the Police Department to find out the current documents required.

“After the records are done, the Police Department gives you system login information where you can enter the identity information of the people you will rent your house to. In this way, you notify the guests who will stay, just like in the hotel.”

Regarding AKTOB Chairman Kaan Kavaloğlu’s opinion that real estate sales should be stopped in some regions, Yüksel said, “The incident in Antalya is a rare example and of course, it is impossible not to react to this situation. However, I am sure the relevant ministries will take the necessary steps regarding the issue and this situation will be corrected.

“An attitude such as ‘Stop real estate sales’ is not correct, but a limitation can be imposed on bulk purchases from the same site/region. Such situations can be prevented by taking precautions.”