Long-Term vs Short-Term Rentals — Which Pays More?

Long-Term vs Short-Term Rentals — Which Pays More?

Turkey’s real estate market offers one of the most attractive rental opportunities in the Mediterranean. Whether you own a seafront apartment in Alanya, a villa in Antalya, or a city flat in Istanbul, your property can generate solid income. But the key question for every investor remains: Is long-term or short-term rental more profitable?

Let’s break down both strategies — income potential, legal requirements, and management factors — to help you decide which model suits your goals best.

1. Understanding the Two Rental Models

Long-Term Rentals

• Typically 3 Months or More.
• Tenant signs an official contract, typically notarized.
• Lower maintenance effort — stable income, less turnover.
• Popular among locals, expats, and remote workers.

Short-Term Rentals

• Typically from a few days to 3 months
• Operate under tourism license regulations (Law No. 7464, 2023).
• Higher income during tourist seasons, but more operational tasks.

Both models can be profitable — but each comes with unique benefits and challenges.

2. Income Potential and ROI

The profitability gap between short-term and long-term rentals in Turkey can be significant.

Rental Type Average Occupancy Monthly Income Annual ROI
Short-Term 70–90% during season €1,000–€3,000 8–12%
Long-Term 90–100% €500–€1,200 5–7%

Short-term rentals clearly bring higher gross income, especially in high-demand areas like Alanya or Antalya’s Lara district. However, long-term rentals offer stable cash flow and fewer operational costs.

✅ Example: A 1+1 apartment near Cleopatra Beach rented short-term can generate €2,000/month in summer, but only €600–€700 off-season. The same apartment rented long-term brings €900/month consistently year-round.

3. Taxes and Legal Requirements

Long-Term Rentals

• Governed by the Turkish Code of Obligations.
• No special license required.
• Income must be declared annually; tax rate between 15%–45%.
• Payments must go through bank transfer — cash rentals are prohibited.

Short-Term Rentals

• Require an official Tourism Rental License (Turizm Konutu İzin Belgesi).
• Property must meet safety standards (fire alarms, first-aid kit, signage).
• All guests must be registered in the Kimlik Bildirim System.
• Violations may result in fines up to 1,000,000 TL.

💡 Tip: Working with a licensed agency ensures that all these procedures are handled legally and efficiently.

4. Pros and Cons of Each Model

Criteria Short-Term Rental Long-Term Rental
Income Potential Higher, but seasonal Lower, but stable
Occupancy Risk Variable Constant
Maintenance Costs Frequent cleaning, wear Minimal
Legal Requirements License + guest reporting Simple lease contract
Management Complexity High Low
Profit Stability Fluctuating Predictable

5. Which Model Fits Your Goals?

Choose Short-Term Rental if you:

• Want higher ROI in a touristic area;
• Are ready to invest in licensing and management;
• Plan to use your property occasionally for personal stays.

Choose Long-Term Rental if you:

• Prefer guaranteed monthly income;
• Don’t want to handle guest turnover or cleaning;
• Value stability over maximum profit.

🔄 Strategy: Many investors use a hybrid strategy — short-term rentals in summer and long-term leases in winter — to combine both advantages.

6. How Professional Management Maximizes Your ROI

Managing bookings, taxes, maintenance, and guests can quickly become a full-time job. That’s why most successful owners delegate these tasks to licensed property management agencies.

A professional agency like RestProperty handles everything:

• Rental licensing and legal setup
• Guest check-in/check-out
• Tax declaration and payment
• Cleaning, maintenance, and repairs
• 24/7 support for tenants and owners

This allows you to earn passive income while your property stays fully compliant and profitable.

7. Why Work with RestProperty

RestProperty, founded in 2003, is one of Turkey’s leading international real estate agencies, officially registered with GİGDER and TÜRSAB. The company is accredited by the Turkish government and provides full legal support, transparent transactions, and after-sales services for property owners across Turkey.

For property owners:

• ✔ Legal licensing and tax compliance
• ✔ Verified tenants and secure contracts
• ✔ Professional management “from A to Z”
• ✔ Multilingual support in English, Russian, and Turkish
• ✔ Real-time income reporting and maintenance updates

With 20+ years of experience, RestProperty ensures your rental business runs legally and efficiently — whether it’s a long-term lease or short-term Airbnb model.

8. Common Mistakes to Avoid

🚫 Warning: Renting without a license (for short-term use)

🚫 Warning: Accepting cash payments without bank records

🚫 Warning: Ignoring guest registration requirements

🚫 Warning: Listing properties on Airbnb without permission from building management

🚫 Warning: Underreporting rental income to avoid taxes

Each of these can result in heavy fines or loss of rental rights — easily avoided by working with an accredited agency.

9. Expert Recommendation: Balance Risk and Return

If your property is in a prime tourist location, a short-term rental strategy delivers higher ROI — provided it’s managed professionally and legally. If you prefer stability and minimal involvement, long-term rental is the safer choice.

Ultimately, the best strategy depends on your investment goals, lifestyle, and availability to manage the process.

10. Conclusion

Both long-term and short-term rentals in Turkey can be profitable when done right. The key to success lies in legal compliance, accurate pricing, and professional management.

With RestProperty, your apartment in Alanya or Antalya can generate income safely, transparently, and worry-free — whichever rental strategy you choose.

💼 RestProperty — your legal, licensed, and reliable partner in property management and rental income in Turkey.