Insurance scheme protects investment interests in Turkey
International real estate company Century 21 has launched a venture in Turkey that could protect the interests of both landlords and tenants.
The firm has launched Kirelax insurance with 600 rental clients in Turkey, in the hope they can alleviate tenants' fears that they will not be able to pay rent and landlords' fears they will not receive it.
In the case of sudden unemployment, bankruptcy, illness or similar situations, Kirelax will cover rent for up to a year. For landlords, Kirelax plus will pay any rent missed as well as court fees and building contributions, the Turkish Daily News reports.
Baris Birol, director of channels and operations for Century 21 in Turkey, said that the company aims to have 100,000 people on the Kirelax system by the end of this and a five year target of 1 million.
Mr Birol claims that the scheme will lead to an increase in foreign investment in Turkey as prospective landlords will "feel more comfortable to invest" due to the safeguards afforded by the system. He asserts that investors would rather invest in properties that already have tenants and that the scheme would guarantee a rental return.
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