Buying turnkey properties is a popular form of investment for property owners who want to earn passive income without becoming a landlord.
Around 72% of rental properties in the US are owned by individual investors, census data shows. And around 22 percent of small properties with up to four units are managed by professional companies, some of which will be turnkey properties.
What is a turnkey property? And what is turnkey property management? Keep reading to find out that and the advantages of Turnkey property management.
What Is a Turnkey Property?
A turnkey property is one that is new or recently renovated. It either already has a tenant or is ready for rental. In that sense, it is ready for the investor to "turn the key" to the property.
A property manager for turnkey property handles all interactions with tenants, collects the rent payments, and arranges maintenance. The property owner receives the income after expenses.
Advantages of Turnkey Property Management
There are several benefits of investing in a turnkey property. Here are six advantages over managing your own rental that you should consider.
1. Passive Management
One of the top advantages of buying a turnkey property is that you can have a property management company take over the day-to-day running on your behalf. That gives you more freedom and time to pursue other interests with less stress.
The best turnkey property manager will handle the entire process, from finding the property to interacting with tenants and managing maintenance.
2. Generate Returns Faster
As turnkey properties already have tenants or are ready for tenants to move in, they can start generating cash right away. There's no need to complete costly and time-consuming maintenance or renovations before you start receiving rental income.
3. Invest in Strong Rental Markets
With the entire process managed on your behalf, you can buy turnkey rental properties anywhere in the country without having to be physically present.
You can buy properties in markets with high rental prices or high growth rates while living in another part of the country. That makes it easier to expand your property portfolio.
4. Receive Expert Advice
You can receive expert advice from your property manager to identify the best opportunities. This saves you from having to rely on your own research of the property sales and rental markets across the country.
The property manager can help you decide what to buy, where, and when, to keep your properties occupied.
5. Save Money on Expenses
Paying a property management company to handle your turnkey investment can save you money in the long run. Property managers have effective systems to screen tenants, reducing the chances of taking on a bad tenant who damages the property or must be evicted. They also have skilled contractors who can save you money on maintenance work.
6. Market Your Property
Turnkey property managers handling many rentals have extensive experience in marketing properties. They also have access to preferential rates for advertising because of their scale. In this way, they can market your property more widely than you would be able to alone, finding tenants faster and reducing vacancy periods.
Consider Turnkey Property Management for Your Investment
Investing in a turnkey property can be a good way to expand your portfolio. A turnkey property management firm can manage the entire rental process for you, giving you a passive income.
Do you need help managing your rental property in Charlotte, North Carolina? Wilkinson Property Management can take on your property. Contact us today to discuss your rental investment needs.