Are you a landlord, or looking to become one? Are you interested in a hands-off approach to property investing? If so, a turnkey property rental could be just for you.
Does property developing and investing fill you with dread? Worries about managing a renovation? Turnkey property rental flips that idea on its head.
What is a turnkey property rental? Is it right for you? Let's dive in and explore the answers.
What Is a Turnkey Property?
When applied generally, the term applies to any home sold in move-in condition. The idea is that there's no work for the new owner today. It often applies to homes that have been newly built or recently renovated by a developer.
Turnkey property rental takes this idea and applies it to the rental market. Landlords invest in properties that require no renovation. The property is ready for a tenant to move into immediately.
Many properties marketed as turnkey properties already have a tenant living in the property!
What Are the Benefits of a Turnkey Property Rental?
There are many turnkey property benefits. First, you avoid the headache of completing the renovation yourself. There's no need to apply for permits, to worry about safety compliance; the developer has taken care of all this for you.
Secondly, you keep gaps in tenancy to a minimum. There's no dead time when you're paying a mortgage with no income. Turnkey properties are also attractive to renters, who may be willing to pay a premium for the luxury of living in a new, or newly renovated home.
Finally, it allows you to be as involved (or not) as you like. Increasingly, investors are living in one part of the country and investing far and wide. You may find the lower purchase cost of properties in certain parts of the country is coupled with high rental returns.
Some turnkey property landlords opt to employ a local property management company. They handle the day-to-day running of the property. The landlord simply handles the finances.
What Types of Rental Property Are Available?
There are two main routes for getting into the turnkey property rental market.
The first, and more expensive option, is to buy a turnkey property with a sitting tenant. A property management company is likely already in place. All the hard work has been done for you, and you can expect to pay a premium for that.
The second option is to buy a fixer-upper and use a company to turn it into a turnkey property for rental. This carries more risks.
What will you find during the renovation? Will you find a suitable tenant? How will you manage the project?
For both options, there are many specialist companies ready and willing to work with you.
Is Turnkey Property Rental Right for Me?
If you're still wondering, "what is a turnkey property rental going to do for me," then consider the benefits.
It's a hands-off way to make an income. You can live far away from the property and still reap the benefits. Plus, you get a property in great condition.
Turnkey property rental could be a great way to take your first steps as a landlord. It could also make a great addition to an existing portfolio.
At HomeRiver Group® Spokane, we treat your property like it's our own. For more information about our property management services, get in touch today.