Choosing between long-term and short-term rental models when investing in real estate in Turkey is a critical decision for investors. New regulations on rentals for tourism purposes have made the advantages and risks of both models more evident. While long-term rentals provide regular and predictable income, short-term rentals offer high returns, especially in touristic areas.
The choice between long-term and short-term home rental models in the Turkish real estate market causes investors to experience constant indecision. With the new regulations introduced for tourism rentals in 2024, the differences between these two models began to attract attention. Limitations on rent increases in the face of increasing inflation can sometimes make long-term rentals unattractive. In this guide, we discussed the advantages and risks of short and long-term rental models and which model may be more profitable under which conditions.
Key Differences Between Long-Term and Short-Term Home Rental Models
One of the most difficult issues for investors when investing in real estate is deciding which of the long-term and short-term home rental models to choose. While short-term rentals offer high return potential, especially in tourism regions, long-term rentals provide a more regular and predictable income.
Long-term and short-term home rental models have their own advantages and aspects that need to be considered. For example; In long-term rentals, the contract renewal process usually occurs once a year.
In short-term rentals, operational processes such as daily reservation management, cleaning organization and guest communication are more intensive. It is not enough to focus only on rental income when investing. The management process, time requirements and costs that come with each model should also be carefully evaluated.
The table below clearly reveals the main differences between these two models for investors:
feature
Long Term Rental
Short Term Rental
Contract Duration
1 year and above
1-100 days
Revenue Predictability
high
Variable
Management Burden
low
high
Legal Regulations
CPI based increase limit
Permission from the Ministry of Tourism is required
Target Audience
fixed tenants
Tourists and short-term stayers
While tenant turnover remains at a minimum level in the long-term model, there is a constant change of guests in the short-term system. This directly affects operational costs and management requirements.
When evaluated from a real estate consultancy perspective, long-term rental provides fixed rental income, while the short-term model offers price flexibility according to market conditions. However, in short-term rentals, reservation cancellations and seasonal fluctuations may create income uncertainty. Additionally, in the short-term model, online platform commissions and continuous marketing requirements create additional cost items.
Advantages of Short-Term Rental for Investors
The short-term rental model offers remarkable return opportunities, especially in regions with high tourism potential. According to Homesberg data, it is known that only 15,000 of the approximately 100,000 Airbnb houses operating in Türkiye at the beginning of 2024 have been able to obtain a tourism residence permit so far.
Rising Returns with the Increase in Tourism Demand
In recent years, high occupancy rates in touristic cities such as Istanbul, Antalya and Izmir bring the short-term rental model to the fore. In touristic areas, daily rental prices can be 5-10 times higher than monthly rental fees. However, constant demand fluctuations and intensive care requirements are also factors to be taken into account.
In 2024, it has become mandatory to obtain a permit from the Ministry of Culture and Tourism in order to rent for tourism purposes. According to real estate law experts, administrative fines starting from 100,000 TL are imposed on property owners operating without a permit.
Flexibility and Possibility of Use at Desired Times
Investors can reserve their properties for their own holiday plans or obtain maximum returns by renting them out during the high season. This flexibility provides a great advantage, especially in coastal areas and ski resorts. The advantages of short-term rental include the opportunity to make seasonal price adjustments.
Stability Factor that Stands Out in Long-Term Rental
The legal assurance, regular income structure and less need for management offered by long-term contracts constitute the ideal solution for investors who do not prefer to take risks. However, long-term rental risk should also be taken into consideration. If the tenant has difficulty paying or the property is damaged, the investor may face long-term losses. According to Kadim Law data, the increase rate in residential rents in Türkiye based on CPI for 2025 has been determined as 48.73%.
Decreasing Costs with Decreased Tenant Circulation
In the short term, the cleaning, repair, and check-in/checkout processes that come with each new guest are significantly higher than in the long term. In the long-term model, these costs are minimized.
Cleaning costs only a few times a year
Furniture and white goods wear is much less
Utility costs such as electricity, water and internet belong to the tenant.
Real estate commission costs are minimal
Legal processes are more predictable
Predictable Rental Income Proportional to the Value of the Investment
When comparing the rent multiplier and property value in metropolitan cities, the long-term model provides sustainable income streams to investors. According to Makro Life data, the highest rental yield is 7.29% in Ankara, while this rate is 5.73% in Istanbul.
Regional Dynamics and Location Based Strategies in Türkiye
In Türkiye, the impact of tourism in different cities is the determining factor for short-term rentals, while internal migration in metropolitan cities is the determining factor for long-term rentals. Rental income analysis by location is of great importance in developing the right investment strategy.
While the rental housing market is directly shaped by regional economic activity and demographic movements, the effect of the tourism season creates significant differences, especially in coastal cities. When calculating the occupancy rate, the tourist profile of the region and seasonal demand fluctuations must be taken into consideration.
Although university cities in Central Anatolia are ideal for long-term rental, the Mediterranean and Aegean coasts stand out as regions where the short-term model is more advantageous. Taking subway lines and new transportation projects in metropolitan cities into account in real estate valuation processes increases the accuracy of investment decisions.
Which Model is More Effective in Regions Such as Istanbul, Antalya, Izmir?
According to Makro Life automatic valuation system data, while short-term rentals seem more advantageous in the historical regions of Istanbul and the coastal areas of Antalya, long-term rentals in districts close to Istanbul's business centers provide more stable returns.
Short-term rental potential varies depending on location in Istanbul.
Seasonal demand fluctuations are evident in Antalya.
A mixed model can be applied in Izmir with balanced demand throughout the year.
Seasonal short-term rentals stand out on the Bodrum-Marmaris line.
Long-Term Rental Trends in Ankara and Central Anatolia
In regions where tourist density is low and stability is important, the long-term model offers more reliable advantages to investors. According to NTV Money data, the average house price in Ankara is 2 million 720 thousand liras, while the amortization period is 13 years.
Comparison in Terms of Business Management and Costs
When the investor compares the two models in terms of management burden, extra services and expenses, operational differences clearly emerge.
While operating costs remain limited in long-term rentals, cleaning, maintenance and marketing expenses constitute important cost items in short-term rentals. Real estate consultancy services are becoming a constantly needed item in short-term rentals.
There are also differences from a tax perspective. While VAT liability arises for short-term rentals, according to PKF Istanbul data, an exemption of up to 47,000 TL is applied for long-term residential rentals for 2025. Makro Life market analysis data shows that these tax differences play an important role in investment decisions.
Which Investor Profile Is Long-Term and Short-Term Rental Suitable for?
Choosing the model that best suits the investor's time management, risk perception and income planning is one of the basic conditions for successful real estate investment.
Long-term rental is ideal for investors looking for passive income
Investors who can do active management can make more profits than the short-term model
Investors who do not hesitate to take risks can apply a mixed model
Those who expect fixed income should prefer the long-term model
Investors with knowledge of the tourism sector should evaluate the short-term model
Makro Life real estate valuation solutions support investors in making accurate market analysis for long-term and short-term home rental models. Continuous monitoring of rental market dynamics is one of the necessary conditions for optimum return.
In real estate investment, where both models have their own advantages, conscious choices supported by location analysis and market research determine long-term success.
Frequently Asked Questions About Long-Term and Short-Term Home Rentals
How long does it take to obtain a tourist residence certificate for short-term rental?
Applications made to the Ministry of Culture and Tourism via e-Government are generally completed within 15-30 days. However, the process of obtaining approval from the board of building managers may require additional time.
What can be done if the tenant does not want to leave in a long-term rental?
In accordance with the Turkish Code of Obligations, the landlord may request eviction from the tenant when the contract expires. The legal process takes an average of 6-12 months and enforcement costs are borne by the homeowner.
In which regions are short-term rentals prohibited?
Although there is no general ban in current regulations, some site managements and municipalities may impose restrictions within their own borders. Such restrictions are increasing especially in regions with noise problems.
Is there a requirement for insurance for short-term rentals?
Although there is no legal obligation, it is recommended to have a private insurance policy against guest safety and material damage risks. Platforms like Airbnb offer their own insurance solutions.
Can I mix two models?
Yes, but a tourist residence certificate is required during short-term rental periods. Additionally, tax obligations and accounting records are becoming more complex. It is necessary to keep separate accounts for both models and report periodic transitions.
