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BYHC

Renting Out A Second Home To Tourists?

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I have just joined this forum as I am interested to know the experiences of owners renting properties via the internet. Which are the most and least successful sites for owners? Do owners prefer fixed advertising cost or commission payments on successful bookings? And what the reasons for success or failure might be?Another thing I have been wondering about, is given the current financial climate and all the doom and gloom - which appears pretty much global - are those owners who might have previously kept their second properties for personal use becoming more likely to help finance the properties through holiday lets?

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Hi BYHC

Although when we first bought we considered renting our holiday home, we soon changed our minds. It is far too much hassle. To begin with you need a completely trustworthy manager to organise cleaning, key holding etc. I have heard so many horror stories where that is concerned. Then you have to think about the tax implications. UK (if you are a UK tax payer) and Turkish tax authorities are on the ball and may well catch you if you do not declare your earnings to both. Although there is a system by where you declare and pay tax in Turkey then you declare in UK and the tax paid in Turkey means you are unlikely to pay in UK as well, you still have to declare in both and my Turkish is just not up to the hassle of it. You also have to worry about 3rd party insurance - Intasure does that but it does not cover communal pools if you have one. We like to keep our possessions there and that includes stuff like windsurf kit, clothes, toiletries etc. It is so nice to just leave it all there in cupboards all ready to use when we return. We sometimes let members of our family stay there but that's it.

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Hi BYHC & JK1

We manage a lot of rentals, holiday and otherwise. We don't deal with tax but I do know that there is a relatively straightforward system for calculating and declaring the tax from your rental income in Turkey. There might be more to pay later in the UK or wherever your home nation is, but you will get a receipt from Turkey for the tax you've paid here, and you'll only need to pay the difference if your home tax rate is higher.

So if it's 17% in Turkey but 20% in the UK, you'll need to pay that remaining 3%. The total is the same as if you were just paying tax directly in the UK.

Re insurance, while Intasure are good and competitively priced, you might be better off with a local insurer who can get down to your property within hours, not days if an incident arises. They also might be able to tailor make their policy for you. But prevention is a better course of action than relying on insurance to sort out any problems that might arise - keep your home secure, fix things that might be dangerous for your guests, install alarms, have a monitoring system in place.

@BYHC we find that owners prefer to pay fixed costs than percentages on advertising. The main reasons for success are providing a well-managed property in good condition, clear paperwork and good admin, sensible and accessible payment terms, taking a security deposit, and treating the arrangement with common sense. We rarely encounter problems and I'm sure it's down to the fact that we very obviously respect the properties we let out and the rights of both owner and tenant. And in return for that free market research, perhaps if you have a project in mind, you'd like to ask me to join you! :D

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I think we could do with you down in Datca Laura! I purposely bought in 'the back of beyond' and wanted to be away from the typical expat haunts. The down side of that is we don't have the kind of professional outfit you seem to offer. Everything there if you are a foreigner is overpriced and unreliable and the friends I know who have tried renting have had untold problems. I really don't trust anyone to hold my key and do the job properly. I can't possibly expect to have paying guests if I can't depend on a manager. I did have an English friend who I trusted completely to hold my key and clean up for me after I stayed but of course that was not a legal arrangement and she couldn't possibly have done it on a regular basis as a business. Then when she got her citizenship she moved away.

As for the insurance I have heard nothing but praise for Intasure. People who have needed to claim have said they are very good. I chose them for several reasons - mostly because I could understand the very simple policy. Also they give 3rd party liability and at that time I could not find one Turkish company who would do this - maybe that has changed now. The down side was that they do not give 3rd party insurance for communal pools so that would be a worry for me.I suppose if you are going to rent your property it really needs to become a business and not your home and that is where I have the other problem. I go often and leave everything I need there in order to travel light.

I just love to walk in with a small bag and know that I don't have to unpack much and can start the holiday there and then. If you have paying guests you can't do that.I suppose there will be many now who really need to rent for financial reasons. Fortunately we didn't overstretch ourselves on the purchase only spending what we had and what wouldn't be a disaster if we lost it and can manage without renting. For those who really have to do it it is essential that you find an excellent manager because without that you are sunk.

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Thanks JK1 - I'd like to think people up here in Didim are quite pleased to have us around too!To earn a little money you could always extend what you're already doing and rent to friends of friends - just make sure you get a deposit, it's absolutely crucial! And make sure they are clear that they need to take the rubbish out, do the laundry, clean the property and switch off the mains utilities before they leave (presuming you have no-one to go in and do a clean and inspection afterwards). You'd just need a lockable storage unit where you can leave your personal items so you can still turn up with your hand luggage and your easy start to your holiday! A lot of people use storage beds, and you can fit a lock to them as long as the right type of lock is available.Glad to hear your recommendation of Intasure by the way. Yes, some Turkish companies also offer 3rd party insurance for rental properties now, and policies in English. I'm not too sure about communal pools - I would always recommend that holidaymakers get their own travel insurance to cover accidents though.

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Yes that is an idea Laura. We don't ever charge friends or relatives though they just give a contribution to the water and electricity and more often than not they come and stay with us when we are there. Most of them take us out to dinner as a thank you and my lovely sister in law has on occasion paid for my flight just so we could go for a girls week. A few people have asked about renting it from us but we are not that keen and when they realise the price of the flights and then the transfers they go off the idea. I think villa rental in Turkey is in it's infancy and for the out of the way places like Datca not really very popular although they don't know what they are missing as it is a spectacular place. Looking on villa rental sites it looks as though 4 - 6 weeks a year is the most they can hope for. We do have somewhere where we could lock away belongings but I'm afraid even that isn't worth it for me. I'm just glad it's something we don't have to do. If you really have to rent out I would say it is essential to buy near an airport in one of the well known places.

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In total agreement with JK1:) Not worth it for the relatively small income it produces. By the way, do you mean second Turkish home or second home as in your one property in Turkey? I would hate to rent out the place that I live in and hope I never have to. i.e. if for example elderly mother became ill in the UK or some other reason that would necessitate my being away for a very long time. Tax is not that complicated (I am told!) and anyway if you work or let property in Turkey you really should have a Turkish book-keeper. Just a question of finding a good and honest one but they are around believe me:) If however you factor all that onto the cost of managing agents and possible problems it really is too much hassle in my opinion.Just to finish, yes I have just insured my new home through Intasure. Was pleased that they also have customers in Istanbul and they were very friendly and helpful and cheaper than the Turkish insurers who apparently are fiendish when it comes to making any claim.

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