As the name suggests, turnkey rental properties are homes or apartment buildings that are completely renovated and ready for tenants. Turnkey investments include investors who wish to buy properties, renovate them, find tenants, and then have the property managed. In most cases, turnkey rental properties are completely managed through a company meant to do just that. This option of investment is usually incredibly appealing for people who want to dip their toes into real estate without having to perform much of the time-consuming tasks. One of the benefits of turnkey rental properties and the reason why most people end up choosing it is for how simple it is. A turnkey investment is a streamlined process that is often managed by a company.
Often, if you invest in a property, there are various of things you need to consider; research the market, find the property, purchase the property, renovate the property, screen tenants, and manage the property. When you choose turnkey investments through a provider company, then you are also taking advantage of the knowledge and networking connections they have. You don’t necessarily have to live near the property as it is not such a big deal. Fortunately, a turnkey property doesn’t mandate you to live close to the property. If you are investing entirely on your own, it is crucial to live close by. You need to be available and on-call for inspections, repairs, and meeting with tenants. The turnkey investment company finds the best investment wherever it may be and helps you to where you are going.
This company can get a suitable property in your price range and then have it all lined up quickly. This means you can get the returns on your investment for a passive income sooner rather than later. You may hear a lot of people advising you to diversify your portfolio. Generally, diversification means that you invest in more than one area and by more than one means to decrease your risk. There is a bad outcome in putting all your eggs in one basket as people say, so investing in turnkey rental properties is another way to mitigate risk. Purchasing a property is only half the battle. Repairs are not only time consuming but costly as well.
One great thing about turnkey rental properties is that they often come with warranties. Just like almost everything you buy, a company often provides some kind of warranty for some timeframe. Meaning, at the commencement of your investment, repair costs are often covered and done for you. Even if a warranty expires, many turnkey providers will offer to do the repair with through own contractors, making the entire process simple and convenient.