Are there any significant disadvantages of turnkey properties? Here’s what investors say
Nowadays, one of the most sought after real estate investment strategies involves investing in Turnkey properties. This is due to the fact that these properties are low risk and offer a high return.
Normally, a real estate investor is required to conduct repair and maintenance work on a property before putting it up for rent. This is not the case with a Turnkey property. Turnkey properties are fully furnished and ready to rent which makes them attractive for many people.
Turnkey properties that are located in military neighborhoods are ideal. The neighborhood increases the value of the property and its appeal. Turnkey properties come with professional agencies that help investors rent them out.
Read about the advantages and disadvantages of Turnkey properties below and decide for yourself if a Turnkey property investment is the right strategy for you.
No Repairs Required
- One of the key features of a Turnkey property is that it is readily available to be rented out on short notice. This is possible since Turnkey properties are already furnished and do not need any maintenance or repair work.
Turnkey properties are favored by investors due to this reason. It gives them peace of mind that they get a fully furnished and ready-to-use property after signing the contract.
- An investor can almost immediately start earning rent on the Turnkey property. This is because there is minimal paperwork involved and the property is ready for tenants to occupy. There are several agencies that help investors find potential tenants for their Turnkey properties.
Hassle-free Renting Experience
Investing in or renting a turnkey property is an entirely different experience than renting a property through a real estate consultancy. Turnkey properties are listed by professional agencies having years of experience. They post detailed information and pictures in online turnkey catalogs. An investor does not even need to be physically present while renting out the property.
- They can conduct the entire transaction online, sitting anywhere in the country. The contract begins officially after the agreement is signed. If the investor does not want to move in themselves, they can find tenants and sign a rent contract easily.
Turnkey agencies often describe the expected rate of return on the properties on their websites. This rate of return has been cited as an important factor in the Turnkey investment decision-making process.
Ideal for Everyone
- Turnkey properties are ideal for everyone, even for people who have no prior experience in real estate management and dealing. This is because Turnkey properties have a straightforward contract procedure and require minimum interaction.
Disadvantages of Turnkey Properties
Despite their investment appeal, Turnkey properties have some disadvantages as well, which are described below:
- Not all neighborhoods and locations have Turnkey properties. The investor’s options are further limited by the type of turnkey property available. If the investor aims to occupy the property instead of renting it out, it might be difficult to find something within the investor’s budget.
Turnkey property’s cost primarily depends on its location and market forces.
- Since Turnkey properties are pre-furnished, the investors have little to no say regarding interior decoration. An investor isn’t allowed to make any major changes. These changes are usually described as paint, flooring, type of furniture present, and general property modifications.
Most investors aren’t interested in changing anything about their turnkey properties since they aren’t going to move in.
There are several Turnkey property management consultancies that provide excellent turnkey property investment, renting, and management services to prospective clients. One such consultancy is Turnkey Military. They are a professional consultancy with years of experience.
They are based in North Carolina and offer buying/selling services for Turnkey properties. They recommend properties near military bases due to their market attractiveness and steady income generation.