Are you looking for an investment opportunity that will bring in immediate income? Are you considering turnkey rental properties?
Most rental properties involve some maintenance before you rent them out. And that could include more than a fresh coat of paint. Turnkey properties, however, offer you a wonderful opportunity to start finding qualified renters right away.
What is turnkey and how can you make it work for you?
Let's take a look.
What Is A Turnkey Property?
In short, a turnkey property is a fully renovated home that you can begin renting out as soon as you complete the purchase.
Turnkey properties may not be the least expensive option initially. Yet you won't need to worry about expensive repairs such as plumbing, electrical, or HVAC upgrades before you begin renting the property out. In most cases, your renters will need to do little else besides move in their furniture.
What Are The Benefits Of A Turnkey Property?
Besides getting an immediate source of reliable income, there are several reasons why investors will choose a turnkey property. Out-of-town investors, for example, are often looking to get in on the booming housing market close to mid-sized cities.
Turnkey properties allow these investors to make a great profit without having to worry about major day-to-day maintenance issues. These could include fuses blowing or heating that doesn't work.
In the event that something does go wrong, you can hire a trusted property manager in the area who will see to rent collection and repairs for you. This means that the only thing they will be responsible for is collecting a steady income.
In the right neighborhood, there is a lot of appreciation for turnkey properties. For example, many major companies are currently moving their headquarters to smaller cities, along with their employees. Some of these individuals are looking to rent before they are ready to purchase a property in the area. In addition, remote work has made some less expensive neighborhoods more convenient and appealing for young professionals.
You can also take a number of tax deductions on turnkey properties. For example, property management fees, purchases and repairs for the property, and marketing fees are tax-deductible.
If you're looking for a solid investment with lots of payoffs, a turnkey property could be in your future.
What Should You Look For In Turnkey Rental Properties?
Even if you're investing in an out-of-town property, you'll want to see it in person before you purchase it. You'll want to get a good feel for the neighborhood, including close proximity to transportation, shopping, and entertainment.
It's also important to check out population and job growth. What employment opportunities are in the area? Is the number growing?
If you are renting out units big enough for families, it's important to know about the schools in the area. Think about how families, will work, play, and get around. With a little forethought, your building could be a popular one.
Moving On
Turnkey rental properties are a solid investment in today's booming real estate market. With the right property and the right management company, you could be on your way to a steady income in no time.
Don't stop getting smart about turnkey properties now. For quality property management in growing areas all over the country, contact us today.
