Renting Out Property in Istanbul: A Landlord Guide for Foreign Owners

Yes, foreigners can rent out property they own in Turkey on the same terms as Turkish owners. A long-term let is governed by the Turkish Code of Obligations No. 6098, which caps the deposit at three months' rent and limits rent increases on renewal, while a short-term tourism let needs a permit under Law No. 7464 and, in buildings with several units, the consent of all other owners. Rental income is taxable in Turkey, including for owners who live abroad.

Rules change, so confirm the current position for your property before you sign anything.

Should you let your Istanbul property long-term or short-term?

A long-term let is a residential lease with a tenant who makes the property their home. A short-term let means renting a residence for tourism purposes, for stays of up to 100 days. Under Law No. 7464, in force since 2024, this needs a permit from the Ministry of Culture and Tourism and, in a building with several units, the consent of all other owners. Unpermitted lets face fines.

In our experience, the consent rule usually decides the question: in a large apartment building or residential complex (site), getting every other owner to agree is often not realistic. Check it before you furnish for holiday guests.

How do you set the right rent?

Start from the rents actually agreed for similar flats in the same building, complex or street; online asking rents show the top of the range, not what tenants sign for. What moves rent in Istanbul:

• the neighbourhood and access to the metro, ferries and main roads;
• floor, light and view, especially a Bosphorus or sea view;
• furnished or unfurnished, and the condition of the kitchen and bathrooms;
• parking, security and site facilities such as a gym or pool;
• the monthly service charge (aidat), which tenants weigh against the rent.

Set the starting rent with care. Renewal increases are capped by the CPI rule explained below, so a rent set too low is slow to correct, and one set too high leaves the flat empty. Our guide to rental income and yields in Istanbul covers the investment side.

How should you prepare the property before letting?

• Repairs. Service the combi boiler (kombi), fix leaks and check windows, locks and appliances.
• Clean and refresh. A professional clean and, where needed, fresh paint show in every photograph.
• Furniture. Furnished flats tend to suit people moving to Istanbul for work; unfurnished flats suit tenants with their own furniture.
• Photographs and a floor plan. Bright, honest images reduce wasted viewings.
• Inventory. List the contents and their condition, with dated photographs, signed by both sides and attached to the lease.
• Paperwork. A valid DASK policy, a copy of the occupancy permit (iskan), the utility subscription numbers and the building management's contacts and house rules.

How do you find and screen tenants?

The listing should state the rent, deposit, aidat, what is included and the available date, with video viewings for tenants still abroad. Before accepting a tenant, we ask for:

• identification (passport or Turkish ID) for everyone who will sign;
• evidence of how the rent will be paid, such as an employment or company assignment letter, payslips or bank statements;
• a previous landlord's reference where possible;
• who will live in the flat, any pets and the planned length of stay;
• for a company tenant, the company details and who has authority to sign.

We look for a consistent story: the job, the budget, the move-in date and the reason for moving should fit together. Where income is hard to verify, a guarantor can co-sign the lease. Apply the same criteria to every applicant, and take the rent and deposit by bank transfer only.

What should a lease contract in Turkey include?

Residential and roofed-workplace leases fall under the Turkish Code of Obligations No. 6098. A clear lease covers:

• the parties and their ID or passport numbers, and the property's address and title-deed details;
• the start date, the term and how renewal works;
• the rent, the payment date, the currency and the bank account;
• the deposit and the conditions for returning it;
• how the rent is increased on renewal, within the legal cap;
• who pays utilities, the aidat and any one-off building costs;
• permitted use, the number of occupants, pets and subletting;
• maintenance and repairs, and how the tenant reports a problem;
• the signed inventory, notice addresses (an email and a local contact for an owner abroad) and the condition expected at handover.

Make the lease bilingual, Turkish and English, and state which version prevails, so neither side signs something they do not understand. We prepare the lease paperwork with both parties, and we recommend an independent lawyer reviews it before signing. For a shop or office, a tenant can assign a workplace lease only with the landlord's written consent, which cannot be refused without just cause (Art. 323); see our guide to commercial property in Turkey.

What are the rules on deposits and rent increases in Turkey?

Deposit. The security deposit is capped at three months' rent (Art. 342). Record it in the lease, take it by bank transfer, give a receipt and agree in writing what can be deducted at the end, such as unpaid bills or damage beyond normal wear.

Rent increases. On renewal, the annual rent increase may not exceed the 12-month average of the consumer price index (CPI, or TÜFE) (Art. 344). This applies to residential and roofed-workplace leases. You can agree a lower increase, but a lease clause cannot take you above the cap. Calculate each increase from the official published figure at renewal.

Getting the property back. Ending a lease against the tenant's wishes is closely regulated in Turkey. If you may want the property back, to sell or to live in, plan for it before you sign and ask a lawyer about your options.

Who pays utilities, aidat and DASK?

• Utilities. Electricity, water, natural gas and internet normally go into the tenant's name. Record the meter readings at move-in and move-out.
• Aidat. Agree in the lease who pays the monthly service charge and any one-off building works, and check from time to time that it is being paid: aidat debts should be cleared before any future sale.
• DASK. Compulsory earthquake insurance is required for the building; keep your policy valid every year.
• Property tax. The annual property tax under Law No. 1319, set by the municipality on the property's tax value, is an owner's cost.
• Insurance. Optional home and contents cover is worth considering, especially for a furnished let.

How is rental income taxed for foreign owners in Turkey?

Rental income from property in Turkey is taxable in Turkey, including for non-resident owners. Individuals declare it in an annual tax return filed in March, so you need a Turkish tax number and good records: the lease, bank statements showing the rent received, and your costs.

If a company or business tenant rents a workplace from you as an individual, the tenant withholds 20% income tax (stopaj) from the rent and pays it to the tax office (Income Tax Law No. 193, Art. 94). State in the lease whether the agreed rent is gross or net of this withholding, because it changes what you actually receive.

Which expenses apply, how the withholding is credited and how Turkish tax interacts with tax in your country of residence are questions for a tax adviser; we do not quote thresholds because they change. For an overview, see our guide to property taxes in Turkey.

Can you manage a rental property in Istanbul from abroad?

Yes. Online viewings, digital documents and, where needed, a power of attorney mean you can let your property without travelling. A workable set-up includes:

• a Turkish bank account for the rent, so every payment leaves a record;
• your tax number and an accountant for the March return;
• a local contact for repairs, emergencies and the building management;
• regular inspections, with photographs;
• a calendar for lease renewals, rent reviews, DASK renewal and tax deadlines.

Our property management service can take on these tasks, from tracking rent and paying bills to organising repairs and handovers, and reports to you in your language.

What are the most common landlord mistakes in Istanbul?

• Letting short-term without a Law No. 7464 permit or the other owners' consent.
• Signing a Turkish-only lease you cannot read, or a template that ignores the CPI cap.
• Taking a deposit above three months' rent, or in cash with no receipt.
• Skipping the inventory and photographs, then arguing about damage at the end.
• Setting the starting rent by guesswork, forgetting that renewal increases are capped.
• Not declaring rental income, or overlooking stopaj on a company tenant.
• Leaving utilities in your own name, or not noticing unpaid aidat.
• Choosing a tenant in a hurry because the flat has been empty for a few weeks.

How Bosphorus Brokers can help you let your property

Our letting service for owners covers the whole process: pricing from current rents, marketing, viewings in person and online, tenant screening, the lease paperwork in Turkish and English, the inventory and the handover. Our property management service can then handle the day-to-day. Letting and management fees are agreed in writing before we start; see our fees.

Bosphorus Brokers is a licensed real-estate brokerage in Istanbul, authorised by the Republic of Türkiye Ministry of Trade (license no. 3408704). Our founder, Burak Ünal, lists property management and retail leasing among his specialties and advises personally in English, Turkish and French; the team works with clients in English, Turkish, French, Russian, Chinese and Arabic. We are rated 5.0 on Google. Contact us or WhatsApp +90 533 140 04 96 to discuss your property.