?What is "Returns" in Turkey

It is well known that investors in turkey prefer to purchase a property with a residence or complex to enjoy the luxurious details and services. However, a monthly fee pays for such services called "returns".

The fees are for services such as security-heating heating system - cleaning - gyms - swimming pools and other services and facilities used by residents.
The monthly return amount is decided upon an unanimous decision taken by the residents of the complex, and in accordance with the law on the ownership.

To provide the services, residence typically collaborate with services companies specialized in each of the service areas such as: security, hygiene, elevators, and many other companies that provides professional services. Furthermore, the residence administration is keen to rationalize the use of the available resources within the complex, and allocate them for use more effectively by residents.

Elevators are one of the most important services that costs the management as it requires periodical maintenance to serve the residence of the complex.
Another use of monthly returns is, to enhance the complex landscape and decoration, expand and add new additional social facilities, install smart solutions that ease the lives of the residents.

Mr. Nihad Donmaz, a complex management consultant have mentioned four important ideas in regards of the property law, as follows:

1- Returns: Expenses of managing residential complexes

In order to maintain security and cleanliness of housing complexes a specified and agreed fees is required to cover the expense of using resources, energies, tools and contracts. The monthly amount is subject to change according to the community’s requesting to add some additional luxury services or so.

As for the basic services, they are mandatory provided by low such as security, cleaning and maintenance services, and their expenses must be distributed on the tenants.

2- How are residential community management expenses covered?

The property law regulated the scheme of distributing the costs of managing the complex, yet some other rules are left to the administration of the housing complex, such as the approval of some forms of restricted distribution, according to several factors such as:

The ownership of the land.
The space of the property.
Divide evenly or differently.
Accordingly, these expenses considered credit payments that shareholders must pay them in advance, and it is not possible to evade the commitment of the approved division of any excuse.
A delay fine of 5% for each month is applied to those who are late in making advance payments, and the delay value is calculated per day, so that 5% for the whole month is calculated and divided by the number of days of delay. For example if the value of the advance payment for the proceeds = $ 100 per month, then the value of the monthly delay fine = $ 5, and therefore the value of the daily fine = 5 ÷ 30 = $ 0.16, multiplied by the number of days of delay, and if the shareholder is 7 days late, for example, he pays 7 days x $ 0.16 = $ 1.16.

According to the law, the complex management has the right to initiate legal procedures towards shareholders who do not pay the installments due in advance; these procedures are graded from the demand for payment, to the filing of a lawsuit, may result in a legal mortgage on the property, and in some cases may even lead to property transfer.

3- What is the operation project of in residential complexes? Who prepares it?

The employment project is an arithmetic table in which the estimated expenses of the housing complex are determined, and the share of one independent part (one real estate unit) is calculated.

If there is no approved operating project, then in this case the complex manager makes an estimate to divide the expenses that must be paid in advance by each participant, and he officially informs the owners. Objections received considered for a period of 7 days, after which the division approved and decided by the Council.

The final decision approved by the Landlords Council considered a final and enforceable decision; any objection would be through courts.

4- How is the return value determined in the housing complexes?

Expenses for residential complexes are determined based on the above mentioned operation project, and if there are no special provisions mentioned in the complex management plan, then division of revenues is determined according to Article 20 of the Property Law.

The relative distribution of returns is determined as follows:

50% for staff.
25% for energy and maintenance resources.
25% for managing the complex.

These percentages are fixed regardless of the complex size, number of independent units, or the diversity of residential complexes' facilities and public or social services, such as sports clubs and health facilities.
It is customary for the complex board of directors to calculate the estimated expenses for a month, and then present it to the general assembly of the complex, where it is approved at the general meeting of the owners, and converted into an operation project, and it is considered a final and enforceable decision.

?What is "Returns" in Turkey

Table Of Content

1- Returns: Expenses of managing residential complexes

2- How are residential community management expenses covered?

3- What is the operation project of in residential complexes? Who prepares it?

4- How is the return value determined in the housing complexes?

Comments

Add Your comment

Thank