There is much debate about what is a turnkey property?
This is what we believe a turnkey property is:
- A turnkey property is a property that has been acquired with the intention of being an investment property.
- The property has been thoroughly gone over and renovated with the idea in mind of keeping maintenance calls to a minimum. Think high quality durable materials with a long life. Would you see carpet on the floor of a retail store? Less maintenance calls means happier tenants and more money for you.
- All major systems on the property have at least half of their useful life left or are brand new. Our expectation is that your capital expenditures will be very low in the beginning.
- The turnkey company stands by their rehab.
- The turnkey property will be rented by a qualified tenant that should be there for at least one year.
- The turnkey provider should also be the property manager of the property. It should never be outsourced to a 3rd party.
- The property manager should have all the infrastructure in place to deal with the management of the property. Our 24 hour hotline fields all maintenance requests. Our in house maintenance handles the requests in a timely manner. Our in house leasing person fills vacancies. Our property management software, keeps owners informed of expenditures. A quality property manager will have all of this infrastructure.
- As a buyer of our turnkey product, we believe you can be as hands on or hands off as you want to be. At the minimum, all you will need to do is check your bank statement for your monthly deposit.
So when you think about what is a turnkey property? You should think about a high quality asset that has been redeveloped with the intention of being a rental property. There should be no deferred maintenance and the property should be rented the day you close.