Expert guide to turnkey properties will open your eyes

In the USA, real estate has always been one of the most lucrative businesses to invest in. Most investors follow the buy, construct, and rent model wherein a building is constructed over land and rented out. However, some investors opt to invest in turnkey real estate properties. Let us take a look at what they are how they work in this guide to turnkey properties.

Turnkey Properties Explained

  • In layman’s term, turnkey properties are homes or apartments which have already been furnished and renovated. They do not require any repair work or improvements and are ready to be occupied. As the name depicts: turn in the key and move in. These properties are often managed by professional property management companies and the owner takes a backseat in managing the properties.

The managing company looks after the renovation and repairs work. Tenant management is also done by the managing company. Turnkey properties are a source of passive income for owners that they can earn through an easy and hands-off approach.

How Turnkey Properties Work

The following steps in this guide to turnkey properties are common to the management of most turnkey houses:

  • Turnkey real estate companies purchase undervalued and shabby properties in markets with strong rental credentials.
  • These companies renovate and remodel the properties and make them ready for moving in.
  • Once renovated, the turnkey company sells the property to investors.
  • Investors usually hire property management companies to deal with paperwork, maintenance issues, and execute tenant management. In most cases, property management companies are the same as real estate companies.

From the investor’s point of view, turnkey properties are low-involvement and low-maintenance. The turnkey management companies shoulder most of the responsibility for most administrative and management works. It is therefore important to hire a trustworthy company that has a solid repute and is backed by strong credentials.

  • If you are looking for turnkey properties in North Carolina, we recommend you to look up Turnkey Military. It is a turnkey management company that deals with turnkey properties in military neighborhoods.

Now that we have a basic idea of turnkey properties, let us see what are some pros and cons of investing in turnkey properties.

ultimate guide to turnkey properties


  • Allows the investor to invest remotely. Since all administrative work is managed by a turnkey company, the investor can purchase property anywhere irrespective of his physical presence in that area. This allows the investor to purchase properties in the best rental markets.
  • Instant Return on Investment (ROI). Turnkey homes are move-in-ready and do not require any construction or repair work. They are ready to be occupied by tenants. In some cases, they are already inhabited by tenants. Investing in a turnkey home means an instantaneous generation of cash flow and quick ROI.
  • Streamlined process and avoidance of hassle. Turnkey management companies are responsible for managing complicated tasks and processes such as market research, identification of profitable properties, acquisition, repair and renovation, and tenant management. Management companies streamline the process and take the burden off the investor.

While turnkey companies have certain advantages, some risks are also associated with them. We have listed these risks.


  • Placing trust in others. Turnkey properties are risky in the sense that all the activities are managed and executed by the turnkey company. The investor’s ROI is dependant on the diligence, performance, and swiftness of the managing company. The investor has limited control over the operations of the turnkey property.
  • Turnkey management companies will cost you extra money. There is a monthly management fee plus a premium has to be paid to the company once the property has been purchased.