Turkey is on the brink of tightening its grip on short-term rental properties like those listed on Airbnb Inc (NASDAQ: ABNB). A new bill, instigated by the AK Party, is under consideration in the Turkish Parliament.
If passed, it will mandate landlords to secure permits for short-term rentals, directly impacting the burgeoning home-sharing economy amid the country's ongoing struggle with escalating rents and home prices.
The governing AK Party has proposed that landlords obtain explicit authorization from the Ministry of Culture and Tourism to rent out properties for short durations.
This move is positioned to curb the spiking rental and home prices, Bloomberg noted, exacerbated by rampant consumer inflation following the central bank's decisions in the preceding years.
In recent times, Turkey has faced a significant upswing in legal confrontations between landlords and tenants.
A government-mandated 25% annual cap on rental price augmentations in a climate of over 60% inflation has contributed to this friction.
Consequently, landlords have shown a propensity towards the daily or short-term rental market, facilitated by platforms like Airbnb, to evade these financial constraints.
Per the proposed legislation, rentals for less than 100 days will be designated as "tourism-oriented," reflecting the AK Party's attempt to regulate this housing market segment.
Fines amounting to 100,000 Turkish liras ($3,600) per unit await those who defy the outlined stipulations, serving as a stern warning to landlords and real estate agents alike.
Price Action: ABNB shares are up 3.84% at $132.68 on the last check Tuesday.