The meaning of turnkey property has gradually expanded in the past decade or so. Today, it represents a fully renovated property an investor can buy and rent out immediately.
At surface level, turnkey might sound too good to be true. And we understand why it looks that way. You get a rehabbed property and an opportunity for steady cash flow, and you don’t have to lift a finger.
What’s the Catch?
The answer is that turnkey provides excellent exposure to the real-estate market for those who don’t mind investing more upfront. No investment is risk-free, but when it comes to turnkey choosing a company with the right goal is essential.
But Really – Why, Turnkey?
The appeal of purchasing a thoroughly overhauled home is easy to understand. But that alone can’t justify the significant investment it requires. So, let’s focus on the details. What is turnkey offering?
The Hands-Off Approach
Some people purchase a property for the sheer joy of having to renovate it by themselves. Others shy away from owning a property if it means having to pick up a hammer or call a plumber.
And some simply don’t have the time to even think about working on a fixer-upper.
Let’s be honest, appraisals, inspections, unexpected setbacks, these are all time-consuming efforts. Our investors can trust us to buy a ready-to-rent property without even seeing it first.
Low Vacancy Rates
The basic principle of the turnkey is to deliver a return on your investment right away. The move-in ready quality means you may have tenants even before the closing phase.
In comparison, purchasing a non-turnkey property means securing renovation funds upfront and having to wait an undetermined period to see any cash flow.
Low tenant turnover is almost a guarantee with homes featuring modern amenities, which are a staple of turnkeys.
You might think that’s difficult to do with the short-term renting we specialize in, but we make sure your turnkey is never without a renter.
Great Addition to Your Portfolio
When looking to invest in properties outside your locale, turnkey is the safest approach. Adding a turnkey to your investment portfolio is sure to provide diversification that can mitigate any potential downturns you might experience elsewhere.
Turnkey Is All About the Future
In our view, a turnkey company should be there to provide a full service to the investors. That’s why our investors can always rely on the in-house Property Management team.
There’s no need to look for third-party assistance. Good communication brings trust. A thriving relationship between a turnkey company and an investor means recognizing the potential for future investments as well.