What are Turnkey Properties and Why Retaining Management After Investment is Essential
If you're interested in investing in rental properties for the income and return on investment (ROI) but aren’t quite sure what it takes to properly manage your properties after the purchase closes, then you’ve come to the right page - and business - to guide you in the right direction. There are options you can choose from that allow you to retain all the perks of being an investment/rental property owner without needing to take a hands-on approach to maintenance. A turnkey property may be a pliable option.
What is a Turnkey Property?
A turnkey property is a type of investment/real estate purchase that allows the buyer or investor to take a completely passive role on the rentals’ upkeep and maintenance after the purchase is complete. In most cases, the home is sold in a “rent ready” condition or there is already a renter in place paying market rent. A property management company takes over the day-to-day care and communication as well as the future renting of the property. If you purchase a turnkey property, you are securing a steady source of income without the stress or strain of having to commit to working on the property at all.
If you are interested in learning the ropes on what it takes to own investment or rental property but don’t want to dive right in, a turnkey property is an ideal choice to dip your toes in the water without needing to take on a complete crash course in rental property ownership. If you find the right professionals who can guide you through the process while ensuring you’re maximizing your ROI, you’re setting yourself up for successful property ownership.
How Do Turnkey Properties Increase Your Return on Investment?
What is great about turnkey rental properties is that they will continue to provide you a source of income as long as someone is residing within the home(s). Keeping expenses such as property taxes and maintenance fees down is essential to maximizing that ROI.
A property management team who is determined to share the same goals as the owner and collaborate to achieve the highest return is another important factor. These experts are able to retain current tenants, advertise and follow legislation, and find cost-effective ways to bring the cost of the upkeep of the property as low as possible.
What Will Your Property Managers Do To Ensure Maximum Profits?
Property Managers are experienced in handling the day to day of properties from the start of their life cycle until the very end. Their number one goal is to provide a stress free and passive way for investors to earn an income. Whether you live near your rental, out of state, or are determined to keep a complete back-seat approach, here’s what a highly skilled management team will do on a daily basis to ensure your return is as high as possible.
- Property management teams are experienced at shortening the amount of time a rental property is left vacant by using their many resources and contacts to find suitable renters as quickly as possible.
- Any future renters will be screened thoroughly to determine their likelihood of staying full time as well as their ability to pay in the future and whether they will keep the property in a functional state.
- Your management team will deal with the rent collection as well as stay updated on the necessary laws and processes for recovering any rent or damage arrears.
- If there are any issues with your turnkey property, your management team will either have the skills to repair any problems themselves or find the best and most cost-effective vendor who can.
- Most importantly, your property management team will have a useful strategy in place that will integrate the best options for maximizing your ROI.
Why Should I Really Invest in a Turnkey Property Over a Regular Real Estate Purchase?
If your main goal is to purchase a property with the intent to rent, it is ideal to find an already tenant-occupied property; hello immediate cash-flow!. You’re far more likely to hit some speed bumps if the property is empty because it will take you time and more resources to invest in the home to ensure it’s attractive to potential renters and that you will be able to charge the maximum amount of rent.
A turnkey property is purchased in a rent-ready or already rented state, which means every wall has been painted, every weed picked, window fixed, and appliance updated to ensure it is making the highest available market rent. There is no fuss about renovating or brainstorming ways to maximize rent. With a property management team already in place, you’re ready to hand over the torch and go back to your normal life with more money in your pocket each month.
It’s important after investing in a turnkey property to ensure and maximize the perfect amount of ROI without needing to provide any work into maintaining or managing the property yourself. Placing your trust in a professional property management company offers investors the opportunity to allow the experts to take the lead on what it takes to run a successful business. Plus, your property management team has also already vetted, formed a relationship, and set the expectations with your tenant’s; creating a more streamlined ownership change for all parties involved.
Turnkey properties are becoming increasingly popular among investors who want to secure an income for their future with fewer risks involved and without the need to learn a new skill or communicate with tenants. To learn more about turnkey properties and why the right property management company can increase your income and ROI, reach out to a member of our team today.