The pros and cons of both strategies in brief;

Short-Let

Short-term rentals yields higher rents especially in tourist areas and provides flexibility of using the property for personel stays between bookings.

On the other hand, seasonal fluctuations on the income impacting the cash flow and higher maintenance cost due to frequent guest turnover, wear and tears, requiring more frequent cleaning and maintenance are main disadvantages of short-let option.  Thoroughly screening guests and managing potential issues can be time-consuming and challenging, especially for remote landlords.

More importantly, meeting the strict regulations and compliance with the law is essential to avoid fines.  With the recent legislation, all shor-let properties has to have licence and get certain permissions. Unfortunately, most of the short-let properties does not meet those requirements in Istanbul and can face huge fines.  

Moreover, administrative hurdles, the challenges of understanding and adhering to tax regulations, responsibility for ensuring the property meets safety standards and complies with local regulations, can be counted as main risks and disadvantages of for short-term rentals. 

Long-Let

Consistent and predictable income, less administrative hurdles, reducing financial uncertainty is the main advantage of long term rentals. 

Whereas, a lower monthly income in avarage, less flexibility for personal use, risk of damanges or disputes especially for long tenancy periods are the main disadvantages in comparison to potential short-term rentals. 

In summary, choosing between a short-let or long-let in Istanbul depends on your financial goals, risk tolerance, and how actively you want to manage the property. Conducting thorough market research and considering local regulations is crucial for making an informed decision by understanding the risks and advantages of both options.  By carefully considering these risks and taking proactive measures, landlords can maximize the benefits of short-term rentals in Istanbul while minimizing potential challenges.  For an informed decision you can connect with an IPM experts today.  

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