Turnkey properties have some inherent monetary and administrative benefits. With turnkey properties, the investor is freed from the hassle of administrative and construction work. Rather he can enjoy direct cash flows as soon as the property is rented out. Turnkey properties can be a sustainable source of passive income. The Return on Investment (ROI) is fast which is usually not the case with other real estate investments.
The way turnkey investments usually work is that the investor purchases a piece of real estate property. The investor then hires a property management company who renovates and rehabs it and makes it ready to be accommodated.
When ready, it is rented out, and cash flow is generated instantly. There are multiple turnkey property providers who help investors in finding profitable turnkey properties with proven ROI.
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Now that we have covered the basics of turnkey properties, let us look at some obvious benefits of investing in them.
Immediate Source of Income
- With turnkey properties, you can start generating income instantly. The construction and renovation work has already been done. The moment the tenant occupies it, a stream of positive cash flow is generated. Hence, turnkey properties provide a quick ROI. they can be a wonderful source of additional income without much hassle.
Hassle-Free Investment – Saves Time and Energy
- With turnkey properties, turnkey management companies are responsible for all the administrative work. The investor is required to only invest his money and supervise occasionally. A turnkey investment is a hands-off approach to making money.
The turnkey management companies usually deal with time-consuming processes such as researching the neighborhood, inspecting properties, and renovating them. Sometimes they even help find potential tenants. This saves the investor a lot of time and hassle.
- It is due to this approach that turnkey properties are also called generators of passive income. The entire process of researching, purchasing, and renovating is streamlined without requiring any effort from the investor.
Reduced Risk Due to Warranties
- Most turnkey property companies provide at least one year warranty for the interior and exterior components of the house. It means that if any defect arises in the utilities such as plumbing or HVAC systems, the repair cost would be covered by the turnkey company during the warranty period. This reduces the investor’s risk.
If any defect arises after the warranty period, even then the turnkey company takes responsibility and sends its own contractors for the repair works. The owner of the property will receive the bill for payment of repair works.
Allows to Invest in Distant Locations
- Turnkey rental properties allow the convenience and flexibility to invest in the best rental markets even if the investor does not live there. The turnkey management companies take almost all administrative load off the hands of the investor. This means that investors can buy properties in areas that are far from where they live as their physical presence is not needed for managing the properties.
The investor can fly off for inspections every now and then. But 24/7 monitoring of construction, repair, or renovation works is not needed as the turnkey management company is responsible for doing that.
Hence with turnkey investments, you can invest in your desirable markets even if they are far away from where you live.