Things to Consider When Renting a House in Turkey
A Complete Guide for Tenants and Investors
Renting a home in Turkey can be both a seamless and profitable experience—whether you’re a tenant seeking a comfortable place to live or an investor looking to generate consistent rental income. However, understanding the legal, financial, and practical aspects of the rental process is crucial for making informed decisions.
In this comprehensive guide, we walk you through everything you need to know—from the high rental prices in Istanbul to seasonal villa rentals in Bodrum. Whether you’re new to the market or a seasoned property owner, this article is designed to help you navigate the Turkish rental landscape with confidence.
Getting Started: Budgeting and Location Planning
Before you begin viewing properties, it’s important to clearly define your budget and personal needs. Beyond the monthly rent, you must also factor in additional costs such as:
- Maintenance fees (aidat)
- Utilities: electricity, water, natural gas
- Internet and television subscriptions
- Security and parking (if applicable)
Once your budget is set, location becomes the next critical factor. Consider proximity to:
- Your workplace or business
- Schools and universities
- Public transportation
- Grocery stores, hospitals, and other essential services
In major cities like Istanbul, rental prices vary drastically by neighborhood. For example, according to Deutsche Bank’s 2025 report, the average rent for a centrally located 3-bedroom apartment in Istanbul has surged from $602 to $1,764 in just five years—a nearly threefold increase.
If central neighborhoods are beyond your budget, consider up-and-coming or outer districts like Esenyurt, Sancaktepe, or Sultangazi, where more affordable rental options are available.
Istanbul Rental Market: Trends and Investment Potential
As Turkey’s economic and cultural capital, Istanbul features one of the country’s most dynamic rental markets. As of late 2024, the average monthly rent across the city has reached 25,000 TL, with high-end areas like Beşiktaş, Sarıyer, and Kadıköy seeing significantly higher figures.
Tips for Tenants:
- Opt for long-term leases to avoid sudden rent increases.
- Review the Turkish Code of Obligations, which currently limits rent increases to the 12-month CPI average (previously capped at 25%).
For Investors:
- Istanbul’s rental yields remain among the highest in Turkey.
- Focus on areas with strong demand and infrastructure developments.
- Districts like Üsküdar, Ataşehir, and Kağıthane offer good potential due to growing commercial and residential projects.
Bodrum Villas: A High-Demand Seasonal Rental Market
On the opposite end of the spectrum lies Bodrum, a Mediterranean gem known for its seasonal popularity. Villa rentals here are favored by tourists and high-income families looking for luxury, privacy, and space.
- Daily rates: range from 5,000 TL to 20,000 TL or more, depending on location and amenities.
- Key advantages: private pools, gardens, and proximity to the sea.
For Investors:
- High seasonal income potential from May to September.
- Consider off-season maintenance costs and occupancy rates.
- Popular neighborhoods include Yalıkavak, Türkbükü, and Gümüşlük.
Property Inspection: What to Check Before Renting
Before signing the lease, physically inspect the property using this checklist:
- Signs of dampness or mold on ceilings, walls, and corners
- Plumbing and electrical systems: check faucets, appliances, outlets, and heating
- Building maintenance: clean stairwells, working elevators, and well-kept entrance areas
- Security measures: door locks, intercom systems, surveillance cameras
- Prepare a deficiency report: document any issues and have both parties sign it
This proactive approach helps prevent disputes later on regarding repairs or damage claims.
Lease Agreement: Legal Essentials and Best Practices
A written lease agreement is crucial to protect the rights of both tenants and landlords. It should include:
- Full address of the property
- Names and ID numbers of both tenant and landlord
- Rental amount (both numeric and written), payment schedule
- Deposit amount (typically 1–2 months’ rent) and refund terms
- Method of payment (bank transfer is mandatory for rents above 500 TL)
- Rent increase clause (in line with the CPI or other agreed rate)
- DASK (Compulsory Earthquake Insurance) policy details
Each party should sign and initial all pages, and retain a signed copy for their records.
Required Documents for Renting a Property
For Tenants:
- ID or passport copy
- Proof of current residence address
- Proof of income (salary slip or bank statement)
- Guarantor information (if required)
For Landlords:
- Property title deed (tapu)
- Occupancy permit (iskan)
- Tax ID Number (TIN)
- Past rental income declarations (if available)
Landlords must declare rental income annually and register for taxation purposes. These records protect both parties legally and ensure transparency in the rental process.
Deposits, Payments, and Taxes
According to Turkish law, the maximum security deposit allowed is three months’ rent. To protect both parties:
- The deposit should be placed in a time deposit account in the tenant’s name.
- This prevents unilateral withdrawal by the landlord and ensures the return of funds if no damage occurs.
Rent Payment:
- Payments should be made on time and through bank transfers.
- For individual landlords, the rental income must be reported annually for tax purposes.
- If the tenant is a legal entity, they are required to withhold 20% tax from the rent and remit it to the government.
Long-Term Rentals: Stability and Benefits
Long-term rentals—typically 12 months or more—offer a range of benefits:
For Tenants:
- Protection from sudden rent hikes
- Savings on moving costs and agent commissions
- Stability and the opportunity to build rapport with the landlord
For Landlords:
- Steady income stream
- Reduced tenant turnover
- Lower maintenance and repair disruptions
If you’re considering investing in rental property, prioritize tenant reliability and property upkeep to ensure long-term profitability.
Frequently Asked Questions (FAQ)
How much is a real estate agent’s commission?
Typically, 10% of the annual rent + VAT. This can be paid by either party, depending on the agreement.
What is the legal limit for the deposit?
Up to 3 months’ rent. Deposits should ideally be held in a time deposit account in the tenant’s name.
Who pays the withholding tax?
If the tenant is a company, they must withhold 20% of the gross rent. Individual tenants are exempt from this obligation.
Does the lease have to be in writing?
Not legally required, but strongly recommended. A written contract ensures both parties are protected.
What should be checked when moving in?
Inspect the condition of the property, check all utilities and appliances, and prepare a deficiency report signed by both parties.
Final Thoughts
Renting a house in Turkey—whether in Istanbul’s bustling neighborhoods or Bodrum’s tranquil resorts—requires careful planning, documentation, and attention to legal details. By understanding your rights and responsibilities as a tenant or landlord, you can avoid common pitfalls and maximize the benefits of your rental experience.
For more insights or personalized assistance, feel free to reach out to our team of real estate experts.
Interested in renting or investing in Turkish real estate?
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