New Obstacles to Commercial Leasing of Residential Properties

As known, the demand for alternate accommodation applications in the tourism sector is increasing day by day. Short-term rental of houses, which has made a name for itself recently, is among the most preferred applications by users. The increasing demand for short-term rental of houses has also prompted the authorities to take action. The Law on Renting Houses for Tourism Purposes and Amendments to Certain Laws (Law), also known as the "Airbnb Law", was published in the Official Gazette on 2 November 2023.

The Law regulates the procedures and principles regarding the leasing of residences to real and legal persons for tourism purposes up to a maximum of 100 days at a time.

To rent houses for tourism purposes, it is necessary to obtain a permission certificate from the Ministry of Culture and Tourism (Ministry) before entering into a tourism rental agreement.

In addition, it is regulated that the plaque, the qualifications of which are determined by the Ministry, must be hung at the entrance of the residence rented for tourism purposes. Applications to the Ministry must also include an unanimous approval decision by all the owners of the building in which the relevant independent section is located.

Obtaining the permit is the responsibility of the lessor or Group A travel agencies certified under the Law on Travel Agencies and the Association of Travel Agencies. Additionally, housing enterprises are allowed to engage in rental activities for high-quality housing.

However, in buildings consisting of more than three independent sections, a permit may be issued in the name of the same lessor for a maximum of twenty-five percent. In the event that the number of independent sections subject to the issuance of a permit exceeds five in the same building in the name of the same lessor, it is mandatory to submit (i) the license to open and operate a workplace, and (ii) the decision taken unanimously by all floor owners in case the building subject to the application is located in residential complexes consisting of buildings with more than one independent section.

The Law regulates the circumstances under which a permit may be revoked. Accordingly, the permit certificate will be revoked in cases where (i) the holder of the permit certificate requests the revocation of the permit certificate, (ii) it is determined that the tourism rental activity has been terminated, (iii) the new lessor of the tourism rental housing does not apply for the transfer of the permit certificate within the given 30-day period or the obligations are not fulfilled despite the change of the permit certificate holder being deemed appropriate, (iv) the authorized public institutions and organizations notify that the tourism rental housing is used in violation of public order, public security and public morality. Pursuant to the Law, the rights of the users of the dwellings whose permits are revoked will continue until the end of the contract period.

The Law also stipulates a wide range of administrative sanctions for unauthorized rental activities and permit holders. According to the Law, the administrative sanctions to be applied in case of unauthorized rental activities are as follows:

• Those who rent out houses rented for tourism purposes without a permit will be imposed an administrative fine of 100,000 Turkish Liras for each rented house and will be granted with 15 days to obtain a permit for operating. At the end of this 15-day period, an administrative fine of 500,000 Turkish Liras will be imposed on those who continue to rent for tourism purposes without obtaining a permit, and another 15-day period will be given to operate by obtaining a permit. An administrative fine of 100,000 Turkish Liras for each contract will be imposed on those who rent out the tourism housing rented from the permit holder to third parties on their own behalf and account.
• In addition, an administrative fine of 100,000 Turkish Liras for each contract will be imposed on those who rent out the residence for tourism purposes on their own behalf and account, and those who mediate the rental of houses without a permit for tourism purposes.
• An administrative fine of 100,000 Turkish Liras will be imposed on intermediary service providers who enable electronic commerce and promotion of unauthorized rental activities and do not remove the relevant content within 24 hours despite the warning issued by the Ministry. In case of non-compliance with the relevant decision, an administrative fine of 100,000 Turkish Liras will be imposed on intermediary service providers for each residence.
• An administrative fine of 1 million Turkish Liras will be imposed on those who continue their rental activities for tourism purposes without a permit and those who rent out the same dwelling more than 4 times within one year from the date of the first contract, although they make a lease contract for more than 100 days each time.

The administrative sanctions to be applied to the permit holders under certain circumstances are as follows:

• In case the information and documents requested by the Ministry are not submitted within 30 days, are submitted incompletely, misleading information or documents are submitted, and in case the lessor changes through a legal transaction other than inheritance, an administrative fine of 50,000 Turkish Liras will be imposed if this change is not notified within 30 days from the date of registration in the land registry.
• Within the scope of the Law on the Turkish Tourism Promotion and Development Agency, an administrative fine of 50,000 Turkish Liras will be imposed if the document regarding the payment of the tourism share is not submitted within the period determined by the Ministry or if this document is not presented during the inspections to be carried out.
• The administrative fine to be imposed in cases where the location, quality and physical characteristics of the residence rented for tourism purposes are misleadingly introduced to the user through articles, advertisements, posters, brochures, social media, web pages and similar tools, or the promised conditions are not provided or the residence rented for tourism purposes is allocated to the user for a shorter period than the period specified in the contract will be 100,000 Turkish Liras.
• An administrative fine of 100,000 Turkish Liras will be imposed if the housing rented for tourism purposes is not delivered to the user in accordance with the contract, and an administrative fine of 200,000 Turkish Liras will be imposed if the payment received is not refunded within the given 15-day period.
• If the plaque issued by the Ministry is not hung at the entrance of the houses rented for tourism purposes, an administrative fine of 100,000 Turkish Liras will be imposed and 15 days will be given for the plaque to be hung. However, if the plaque is not hung at the entrance of the residence within 15 days, an administrative fine of 500,000 Turkish Liras will be imposed.
• If the inspection reveals that the dwelling does not meet the qualifications for the issuance of a permit, an administrative fine of 100,000 Turkish Liras will be imposed and a period of 15 days will be given to eliminate the violations.

The Law will enter into force on 1 January 2024. Those who are engaged in tourism leasing activities on the effective date of the regulation must apply to the Ministry to obtain a permit within 1 month from the effective date of the relevant article. According to the Law, those whose application is not accepted will not be able to operate, but the rights of the users of these houses will continue until the end of the contract period.

You can reach the full text of the relevant Law here (only available in Turkish).