You may have heard of the term “turnkey” in real estate, but have you ever learned what it means? If you are looking for your next real estate investment, a turnkey property may be right for you, but there is much to know first. So, what is a Turnkey Investment Property?
What is a Turnkey Property?
A turnkey property means that a house or apartment unit is move-in ready and won’t require extra maintenance or improvements for investors. These properties are often real estate that has been recently flipped and resold; so all amenities are installed and the maintenance is up to date. Turnkey investments are a less costly option for real estate buyers. For instance, they eliminate the need to pay for renovations when purchasing a property.
An Ideal Solution for Investors
You may be looking for a turnkey property if your desire is to rent out to tenants. It’s an excellent way to make a passive income without the extra troubles of revamping the property first. Usually, these properties are renovated by a property management company. Similarly, they will also oversee the home or unit’s condition and the landlord’s duties when it has been rented. As the investor, there is no extra load added to your plate.
More benefits involved in being a turnkey real estate investor include:
- Easy move-ins for tenant acquisitions
- Organized paperwork processing through the property management company as the liaison between tenant and property owner
- The option to invest remotely
Consider the Risks
While this seems like a sure deal, you need to be aware of the potential risks involved. While turnkeys are meant to be a seamless option for investors to earn passive income easily, there is some room for flaws. Consider these potential risks before investing a large fortune into a turnkey property:
- Trusting a management company that is disorganized and does not fulfill its landlord responsibilities
- Some need for direct intervention if the property management company is too overloaded and neglecting your tenants or house or unit upkeep
- You’ll likely need to pay premium pricing for the property management services, lowering potential profit
- A bad flip job that did not fully repair all issues around the property, therefore causing the need for renovations
A turnkey property could be an excellent investment, but like all big purchases, make sure to do your research first. Investigate the property to determine if any flaws remain following its renovations. Research property management companies to learn about their reputation and whether they will do a solid job of taking care of your investment property. Remember that you can’t earn ROI without tenants. Whether looking at a house or a condo unit, make sure to check out whether people are commonly seeking properties in the area and what they are willing to pay. That way, by the time you’ve decided to invest you’ll know that tenants will be lining up to rent your property and contributing to your passive income.
Ready to Invest? Work with the Top Realtor in Victoria BC
Brad MacLaren can help you scope the best turnkey properties that have been well-renovated and make for solid investments. He’ll help you navigate the market so you can feel secure that this real estate purchase will be profitable and seamless for you. Contact the best realtor in Victoria BC, Brad MacLaren, today!