SHORT TERM RENTAL OF RESIDENCES FOR TOURISM PURPOSES

I. INTRODUCTION

This information note provides details on the legal procedures and rules that individuals who will engage in short-term rental activities (up to 100 days) of residences for tourism purposes within the scope of the legislation must fulfill, as well as the sanctions that will be applied to those who engage in unauthorized rental activities and permit holders.

II. GENERAL LEGISLATION

Amidst the high inflation environment and legal restrictions on rent increases, the Law No. 7464 on the Rental of Residences for Tourism Purposes and Amendments to Certain Laws ("Law") and the Regulation on the Regulation of Short-Term Rental Activities of Residences for Tourism Purposes ("Regulation") governing the procedures and principles of short-term rental activities through intermediary platforms such as Airbnb came into effect on January 1, 2024.

The Law has brought all rental activities of up to 100 days under the scope of tourism rental and determines the general principles, permit procedures, administrative sanctions, and legislation applicable to residences rented for tourism purposes. The Regulation, on the other hand, regulates the procedures and principles of renting residences for tourism purposes.

III. RENTAL FOR TOURISM PURPOSES

Tourism rental is defined in Article 2(g) of the Law as "the rental of residences to users for any purpose for a maximum period of one hundred days". In other words, all rentals of up to one hundred days are considered tourism rentals.

From the wording of the Law, it is understood that only real estate with residential characteristics can be rented for tourism purposes as defined in the Law; no license will be issued for real estate with business characteristics.

IV. PERMIT

Obtaining a permit is mandatory for renting residences for tourism purposes. Under Article 3(5) of the Law, the person responsible for obtaining the permit is the lessor. According to Article 4(f) of the Regulation, the lessor is the person who owns the residence or has a right of superficies or usufruct established in their favor over the residence.

In parallel with the regulations regarding the lessor, Article 3(7) of the Law prohibits the user of a residence rented from a permit holder to sublet it to third parties on their own behalf or for the tenant of a residence rented for use as a dwelling to sublet it to third parties for tourism purposes on their own behalf. In other words, while the person who rents a residence for tourism or residential purposes may have the right to sublet or transfer the right of use under Article 322 of the Turkish Code of Obligations, it is against the Law for them to carry out tourism rental activities in the residence.

Article 6(6) of the Regulation clearly states that a permit cannot be issued for the rental of one or more rooms of a residence. Again, the rooms of a residence cannot be rented to different people at the same time.

V. PROCEDURES AND PRINCIPLES FOR PERMIT APPLICATION

a. Required Documentation

As outlined in Article 2(2) of the Regulation, the following documents are required for applications to obtain a permit for short-term tourism rentals of residences:

1. Photocopy of Turkish Republic (TR) identity card or population registration card. For non-TR citizen landlords, a photocopy of the passport along with the foreign identity number or potential tax identification number is required.
   

2. Current land registry record showing property rights and other real rights on the residence.
   

3. In cases of joint and/or collective ownership of the residence, identity information of all owners, their written statements approving the application, and a written statement indicating the landlord who is authorized to represent the other owners at the Ministry of Culture and Tourism ("Ministry") and is responsible to the Ministry, signed by all owners.
   

4. If the residence is located within a building, a notarized copy of the unanimously adopted decision by all condominium owners in the building stating that the operation of tourism rental activities in the residence is deemed appropriate.
   

5. Business opening and operation permit if the number of residences for which a permit is requested in the same building on behalf of the same landlord exceeds five; additionally, if the building in question is located in a site, a notarized copy of the unanimously adopted decision by all condominium owners.

For legal entities, the tax identification number, trade registry number or MERSIS number, and documents related to the identity information of authorized representatives must be submitted.

b. Application Period

The application period for obtaining a permit for short-term tourism rentals of residences is regulated by Temporary Article 1 of the Law titled "Previously Made Tourism Rentals". According to this article, landlords are required to apply for a permit within one (1) month from the date the Law entered into force on January 1, 2024.

Within this scope, those who were engaged in tourism rental activities on or before the date the Law entered into force are granted the right to apply until January 31, 2024. It is understood from the wording of the Law that no administrative sanctions will be applied until the mentioned date.

c. Application Procedure

Landlords can submit applications for permits to operate short-term tourism rentals directly through the e-Devlet portal. The application process allows either the landlord or their authorized representative to submit the request. Authorities will aim to complete the processing of these applications within three months. Landlords submitting applications in person must register their UETS account with the system. This UETS account serves as a message center for electronic notifications. Without a UETS account, individuals will be unable to complete their applications.

It's important to note that the documents submitted during the application process won't be physically verified by the authorities. The system assumes the documents are true copies of the originals and accurately reflect reality, along with the information provided during the application. However, there are severe consequences for submitting false information. If authorities discover false documents were submitted, the application will be rejected. If the residence has already been registered, the permit will be canceled. Additionally, criminal complaints will be filed against those who submitted false documents under the Turkish Penal Code No. 5237.

d. Inspection

The Regulation governing permit procedures for short-term tourism rentals also covers inspections in Article 6. If the application is approved, the residence will be inspected within thirty days from the date the permit is issued.

If the inspection reveals that the residence doesn't meet the minimum required standards, the permit holder will be subject to administrative fines as outlined in the Law. The permit holder will also be given a grace period of fifteen days to address the deficiencies. If a second inspection conducted at the end of this period finds that the problems haven't been fixed, the permit will be revoked.

VI. OBLIGATIONS FOR PERMIT HOLDERS

a. Minimum Requirements

As outlined in Article 9 of the Regulation governing permit procedures for short-term tourism rentals, residences must meet the following minimum requirements during the application process. Failure to comply will result in administrative fines and the revocation of the permit.

• At least one bedroom, bathroom, and combined living-dining area with kitchen

• Cold and hot running water throughout the residence

• Quality beds in bedrooms, with one pillow, pillowcase, sheet, and blanket or comforter per person suitable for the climate conditions

• One face and bath towel per person in the bathroom

• Chemical fire extinguishers and smoke detectors in all areas with fixed partitions except for the bathroom and toilet, along with escape route diagrams on the backs of doors

• All furnishings, décor, equipment, and appliances must be compliant with standards, clean, well-maintained, and in working condition

In addition to the above, the following information must be provided after the permit is issued:

• Residence location, occupancy capacity, floor level, presence or absence of a balcony/terrace, number of bedrooms, living areas, and bathrooms, bed sizes (single or double) in each room, furnishing materials, cooking, food preparation, cold storage, hot/cold beverage preparation, serving utensils, laundry, dishwasher, television, hairdryer, and other equipment, heating and cooling systems, presence or absence of personal or shared gym facilities, spa, swimming pool, parking, accessibility arrangements for accessing and within the residence, pet policy, availability of wired/wireless internet, and information about any other services offered

• Information on the rules and regulations established by the site or apartment management

• Information on check-in and checkout times, and whether cleaning services are provided

The above information must be included in all Airbnb or other similar online platforms where the residence is advertised and marketed.

b. Residence Capatity Requirements,

As outlined in Article 9, Section 1(d) of the Regulation, the occupancy capacity of a residence is determined based on each bedroom being considered as a two-person occupancy. Additional occupancy of up to two persons can be added beyond the number of bedrooms. Even if a residence has more than the required number of rooms to accommodate this additional two-person occupancy, the total number of occupants, excluding children under the age of three, cannot exceed twelve persons.

Exceeding the designated occupancy capacity is strictly prohibited. Any violation of this occupancy limit will result in the imposition of administrative fines.

c. Identity Notification

As per Article 3, Section 8 of the Law, the provisions of the Identity Notification Law No. 1774 ("Law No 1774") apply to residences for which a permit has been issued. The permit holder is considered the responsible person under the notification obligation.

In accordance with the Law No 1774, the permit holder of a residence rented for tourism purposes is obliged to keep daily records of the identity and arrival-departure information of all persons, whether paid or unpaid, day or night, domestic or foreign, who stay in the residence. These records must be made available for inspection by law enforcement agencies at any time.

VII. ADMINISTRATIVE SANCTIONS APPLIED

The penalties for unauthorized short-term rental activities and permit holders are outlined in Article 4 of the Law. Administrative fines range from TRY 100,000 (one hundred thousand Turkish lira) to TRY 1,000,000 (one million Turkish lira), and other penalties such as license revocation may also be imposed.

1. As stipulated in Section 1 of Article 4 of the Law, the following administrative penalties will be applied to those who engage in unauthorized short-term rental activities:

• Landlords who rent out residences without a permit will be subject to an administrative fine of TRY 100,000 (one hundred thousand Turkish lira) for each residence rented out. They will be given a 15-day grace period to obtain a permit and continue operating legally.

• If landlords continue to operate without a permit after the grace period, they will be subject to an administrative fine of TRY 500,000 (five hundred thousand Turkish lira) and will be given another 15-day grace period to obtain a permit.

• Landlords who continue to engage in unauthorized short-term rental activities despite the above penalties will be subject to an administrative fine of TRY 1,000,000 (one million Turkish lira).

• A fine of TRY 100,000 (one hundred thousand Turkish lira) will be imposed for each contract on individuals who sublet a residence they rented as a residence to third parties on their own behalf.

• A fine of TRY 100,000 (one hundred thousand Turkish lira) will be imposed for each contract on individuals who rent out a residence they rented as a residence for tourism purposes on their own behalf.

• A fine of TRY 100,000 (one hundred thousand Turkish lira) will be imposed for each contract on individuals who facilitate the unauthorized tourism rental of residences without a permit.

• An administrative fine of TRY 100,000 (one hundred thousand Turkish lira) will be imposed for each residence on intermediary service providers who enable the electronic marketing and promotion of all unauthorized activities and do not remove the content within 24 hours despite a warning from the Ministry.

• Finally, an administrative fine of TRY 1,000,000 (one million Turkish lira) will be imposed on individuals who rent out the same residence more than four times within one year from the date of the first contract, despite having each contract for a period of more than 100 days (long-term).

2. Administrative Penalties for Permit Holders

The administrative penalties for permit holders are outlined in Section 2 of Article 4 of the Law:

• An administrative fine of TRY 50,000 (fifty thousand Turkish lira) will be imposed if the information and documents requested by the Ministry are not sent within 30 (thirty) days, are sent incompletely, or if misleading information or documents are provided.
  

• An administrative fine of TRY 50,000 (fifty thousand Turkish lira) will be imposed if the change of permit holder, other than by inheritance, is not notified within 30 (thirty) days from the date of registration of the change in the land registry.

• An administrative fine of TRY 50,000 (fifty thousand Turkish lira) will be imposed if the document regarding the payment of the tourism share within the scope of the Law No. 7183 on the Turkish Tourism Promotion and Development Agency is not submitted within the period determined by the Ministry or is not presented during inspections.

• An administrative fine of TRY 50,000 (fifty thousand Turkish lira) will be imposed if the residence is advertised to users in a misleading manner through written materials, advertisements, posters, brochures, social media, web pages, etc., regarding its location, quality, and physical characteristics.

• An administrative fine of TRY 50,000 (fifty thousand Turkish lira) will be imposed if the residence does not meet the agreed-upon conditions.

• An administrative fine of TRY 50,000 (fifty thousand Turkish lira) will be imposed if the residence is allocated to the user for a shorter period than the period specified in the contract.
  

• If the residence is not delivered to the user in accordance with the contract, an administrative fine of TRY 50,000 (fifty thousand Turkish lira) will be imposed. In addition, if the payment received is not refunded within 15 (fifteen) days following the application of this penalty, an administrative fine of TRY 200,000 (two hundred thousand Turkish lira) will be imposed.

• An administrative fine of TRY 100,000 (one hundred thousand Turkish lira) will be imposed if the plaque issued by the Ministry is not hung at the entrance of residences rented for tourism purposes. A 15-day grace period will be given for hanging the plaque. If the plaque is not hung at the end of the grace period, an administrative fine of TRY 500,000 (five hundred thousand Turkish lira) will be imposed.

• If it is determined during an inspection that the residence does not meet the basic qualifications for the issuance of a permit, an administrative fine of TRY 100,000 (one hundred thousand Turkish lira) will be imposed, and a 15-day grace period will be given to rectify the violations.

In addition to the penalties outlined in Article 4 of the Law, the following consequences will apply if false documents are submitted during the application process:

• Application Rejection: The application for the short-term rental permit will be denied.

• Permit Revocation: If the residence has already been granted a short-term rental permit and it is later discovered that false documents were submitted during the application process, the permit will be revoked.

• Criminal Charges: Individuals who submitted the false documents may face criminal charges under Article 5237 of the Turkish Penal Code, which relates to forgery and the use of forged documents.

VIII. PERMIT REVOCATION

As outlined in Article 5 of the Law, a short-term rental permit can be revoked under the following circumstances:

1. Voluntary Request for Revocation: The permit holder can request the revocation of their permit.
   

2. Cessation of Tourism Rental Activities: If it is determined that the property is no longer being used for tourism rental purposes, the permit will be revoked.

3. Change in Ownership without Permit Transfer: If the permit holder transfers ownership of the property through a legal transaction other than inheritance and the new owner fails to apply for a permit transfer within the specified timeframe, the existing permit will be revoked.

4. Violation of Public Order, Safety, and Morality: If authorized public institutions and organizations report that the property is being used in a manner that violates public order, public safety, or public morals, the permit will be revoked.

5. Non-Compliance with Permit Requirements: If an inspection reveals that the property no longer meets the minimum requirements for a short-term rental permit and the permit holder fails to rectify the non-compliance within the 15-day grace period, the permit will be revoked.