Renting your Turkish property

Rental income can easily cover maintenance costs but don't rely on it to finance your property.

Holiday rentals

The Turkish holiday rental market has huge potential with over a million British holidaymakers visiting Turkey each year. The start of low-cost flights into the resorts, with Easyjet announcing a Gatwick-Dalaman flight for 2008, will also promote things. However, at present the rental market is less developed than in countries like France or Spain. Recent building has created a large pool of rental accommodation, with an over-supply in some of the resorts. This doesn’t mean it isn’t possible to earn a good income from rental - easily enough to cover the costs of maintenance and bills. But it makes it very important to choose the right kind of property in a good location, if rental is a primary concern. In resorts such as Alanya, Altinkum and Kusadasi, which are popular with families, apartments on complexes are the easiest to rent. While in Kalkan and Kas villas with pools offer the best rental returns. A resort like Cesme, which is popular with Turkish holidaymakers, is a good bet.

The rental season in the coastal resorts is May-October, with July and August the busiest months. Although rental earnings can cover the cost of maintenance and bills, it is very unwise to rely on it to finance a property.

Rental management & marketing

Many developers provide management services, including cleaning, maintenance and welcome baskets, for a set annual fee or a commission of 15-20% of the rental income. Good management is essential, particularly if you are not around yourself. Marketing your property is also important. Some specialist travel companies offer contracts for suitable properties in areas like Kalkan and Bodrum. But most owners choose to advertising in the local press or on the internet, while others rely on friends and family to spread the word.

Guaranteed rental schemes

Rental guarantees may be offered by some estate agents and developers in Turkey. Simply put, these guarantees are a commitment to return a percentage of the purchase cost of a property to the buyer each year for a fixed term. Ostensibly, the developer recoups this money by renting out the property. This sounds an attractive proposition, but rental guarantees should be examined closely.

Firstly, unscrupulous companies may simply be inflating the sale price of the property in order to cover the rental. Buyers should shop around carefully to see the cost of comparable properties in the same area. Find out whether the developer has an agreement in place with a travel company or lettings agent. If not, then how do they plan to find tenants and ultimately pay the guarantee. Examine the fine print of your contract to see who is actually guaranteeing you the money.

'Rental guarantees are marketed with alarming regularity,” says Paul Owen, CEO of the Association of International Property Professionals. “The simple rule is: if it is not in the contract, it's not guaranteed. Potential rental incomes are often reclassified by salesmen as 'guaranteed', though this is never in writing. Check the contract and recognise that no mention means no guarantee. Even rental guarantees in the contract should be scrutinised by an expert. Make sure you hire a lawyer to check them before you sign anything.”