You have decided that investing in Istanbul is for you, maybe considering a buy-to-let in a city that is home to millions. Investing in Istanbul offers you a multitude of properties to choose from, standard to luxury. Whichever you choose remember that renting is a competitive business which needs professional handling. Using a broker or real estate agent is one way to ensure that the property or properties you have chosen for investing in Istanbul are handled with the appropriate experience and care. Having a set of guidelines for yourself about what costs you want to see returned from a rental investment is a secure plan. Obviously the property stands as an investment but a certain income is also expected from the property. To ensure your investing in Istanbul provides you with some returns, here a couple of actions that are implemented in other large cities and can be applied globally.
- Alongside your own insurance on the property, insist as part of the rental contract or lease that the renters take out a sufficient insurance policy – always good to remind them your policy will not cover personal items.
- Security Deposit – ensure your renter knows specifically what will be taken from the deposit in the event of any damage, to avoid conflicts on the conclusion of the rental period. Unfortunately, there will always some wear and tear costs to consider. Make it clear in the contract if that will be covered by the rental or taken from the deposit. Give a time when the security deposit will be returned after the lease is finished – time enough to have the apartment inspected and any damage noted and costed. Not so late that you have the tenant constantly chasing you. Make sure it is clear if the security deposit will be returned with or without interest.
- Be aware if there are any ‘move-in’ charges from the building, either a rental of the life for the moving in day or a fee if a pet has been allowed. Ensure you make it clear who is responsible for payment for these. As the owner it is actually you so to ensure you do not get an unexpected bill at the end of the year, take the payment up front from the tenant or include it in the rental fees. The same applies to the building maintenance/amenities costs.
Investing in Istanbul is a unique opportunity to create a solid portfolio just with the ownership of the building but if you are going for buy-to let, be sure you do your homework and that your broker knows exactly what your lease requirements will be. Ensure you know all the costs that are expected from the owner and how much you will pass down to the tenant. Be prepared to negotiate.