monthly expenses
Last Updated: 2023-10-28Monthly revenues of residential communities in Turkey
When purchasing a property within a residential complex in Turkey, you should be aware that there are additional monthly fees you must pay. These fees vary from one place to another within Turkey depending on the province and the region where the residential complex is located. These fees are known as "monthly revenues" and they continue throughout your ownership of the property.
Many buyers think that the topic ended once the property was purchased in Turkey, but the topic is followed by monthly returns.
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Complex Management Fees (complex expenses): If the buyer resides in a residential complex or a gated community, they may be required to pay complex management fees to maintain services and infrastructure.
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Annual Property Tax: Property tax laws vary from one country to another. In Turkey, property taxes can include taxes related to the purchase and ownership of the property. The annual property tax value in Turkey is calculated based on the declared value at the time of purchase, which is determined by the title deed (Tapu). The tax rates are as follows:
- Residential properties: 0.1%
- Land: 0.3%
- Commercial buildings: 0.2%
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Maintenance and Service Costs: After owning the property, the buyer is responsible for routine maintenance costs and general services such as water and electricity bills and maintenance fees for residential complexes.
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Property Insurance: When purchasing a property in Turkey, it's advisable to obtain property insurance to protect it from potential risks such as fires, theft, and earthquakes.
What are the monthly returns in Turkey?
They are monthly financial dues paid by the property owner or tenant to the building or complex department, for expenses incurred by the common spaces and existing services. But buying any property, whether it is within a residential complex or within an independent building, attention must be paid to the value of the monthly returns, as the returns may sometimes exceed the usual limit for some buildings and complexes.
How is the value of monthly returns determined?
The monthly revenue list for the residential complex is prepared by the building management. This is done by dividing the construction expenses by the area of the apartments. It is announced through text messages and also printed on the notice board at the entrance of the building. The values of the monthly fees vary from one residential complex to another in Turkey, and they are calculated based on several factors that can either increase or decrease the fees. These factors include:
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Project Budget: Monthly revenue fees partly depend on the budget paid from the start of construction until completion and the delivery of apartments. If the budget is substantial, the fees may be higher.
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Building Quality (Quality): The quality of construction also determines the value of the fees. If high-quality materials and construction techniques are used, the monthly revenue may be higher.
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Modern Designs and Decorations: Costs associated with modern designs and upscale decorations can increase the value of the monthly revenue as the project is beautified and enhanced.
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Available Services: The number and variety of services within the complex, such as pools, playgrounds, lounges, and gardens, can impact the cost of the monthly revenue. More services generally lead to higher fees.
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Service Quality: The quality of the services available in the complex also plays a significant role. Fees tend to rise in complexes that offer luxurious services and high-quality infrastructure.
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Apartment Size and Number of Rooms: Monthly revenue fees also vary within the same complex based on the apartment's size and the number of rooms. It is not reasonable to compare a 70-square-meter apartment to a 400-square-meter apartment, as the fees may be higher for the larger apartment.
What is the average value of monthly returns?
The value of monthly revenues in Turkey varies according to the type of construction and its services, as we find the value of revenues in independent buildings that do not contain any types of social facilities is 10$ per month, which is the fees for cleaning the building only. As for the residential communities, they vary according to the services provided by the complex, such as swimming pools, gardens, sports club, etc., the more services, the higher the operating fees, and thus the revenues rise.
For example, an apartment in Istanbul 2+1 with an area of 120 square meters within a residential complex, the complex includes a swimming pool, gym, sauna, Turkish bath, gardens, and private playgrounds, the owner pays 50$ per month, so the value per meter is 0.40 dollars.
What are the penalties for non-payment of proceeds?
In the event of non-payment of revenues, the construction department imposes financial delay fines , and in the event of non-payment of these fines, a lawsuit is opened and the proceedings are followed up in court. Since you made the decision to buy a property in Turkey, inquired about the monthly returns that you can pay and enter this into your accounts when comparing between properties.
Editorial Mersat Real Estate Team©
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