The features I refer to for this article are the features of turnkey suppliers. These turnkey suppliers find inventory in difficulty, rehabilitate the property, place tenants and set up property management to be ready to assume it as soon as you buy it. So in theory, all you have to do is buy the property, and it`s in operation to put cash in your pocket from day one. A whole business model has been built around them, and these turnkey suppliers sell these real estate en masse. You`re basically glorified pinball machines, if you will. They buy a ton of real estate, re-house it all in bulk and sell it to investors. The purchase of a turnkey property should allow the new purchaser to make it available immediately to tenants. By acquiring real estate that requires little or no renovation, it is a matter of generating income quickly by renting the property as quickly as possible. The amount of work required to turn a home into a turnkey condition may include the replacement of electrical devices, repairs to sanitary facilities, fresh paint for the interior and bindings on the flooring, where necessary. The shorter the turnaround to rent the property, the faster the new buyer can see a return on their investment.
If you were in the apartment, you know that a full and preventative lease is worth its weight in gold. Every turnkey real estate management company has a different level and style of communication, so it`s a matter of who gets along. Yes, all managers should get along with every owner, but life doesn`t work that way. I`ve heard of far fewer bad experiences with turnkey real estate management companies than good ones (yay), but that doesn`t matter to those who end up not liking their managers. I`ll say that the only problem I ever had with Turnkeys (and that was back in the day, not so recently) was with the bad real estate managers! I could have easily mitigated any of these problems if I had looked at more than one property manager and not necessarily trusted the one who came with the property. Many of these turnkey sellers are local pinball machines, mom-and-pop, who specialize in selling rents to investors. This can make them difficult to find, especially remotely. If you have followed me here, you know that I deal primarily with turnkey rentals for my own investments. The reason I`m mostly ashamed of turnkeys is because I prefer to be as convenient as possible with my investments.
The ”out of sight, out of sight” theory doesn`t fascinate me for many things in my life, but it does for my investments. I just prefer to receive my checks every month and have no work to do or exert any stress about my properties! But with the turnkeys, it was more or less announced that the real estate management company that came with the property was excellent. I will say that, in my experience, all companies seem to be trying to excel, but not all of them are affected.