What are turnkey rentals? Are they fully furnished?
Is it a good idea to move into a turnkey rental? Or would it make more financial sense to buy a house?
And, speaking of buying, is it a good idea to purchase turnkey rental properties as an investment? If so, how exactly can you use such properties to generate revenue?
It sounds like you’ve got a lot of questions. Fortunately, you’ll find all the answers you’ve been looking for right here.
The following guide both defines and explains the most important aspects to know about turnkey rental properties. Read on to discover more.
What Are Turnkey Rentals?
Turnkey is a term used to describe a property that is immediately available for tenants to move into. Think of it as the opposite of a “fixer-upper.”
That is, there is no significant work that needs to be done, like fixing broken gutters or replacing the water heater. As such, true turnkey properties come with a higher price tag than fixer-uppers because they’re more convenient.
Are Turnkey Rentals Furnished?
Unless otherwise specified, no, turnkey rentals are not furnished. The term just means that the property is ready/available right now for the tenants to move their things into it.
However, these properties often come with certain appliances. This may include a microwave, refrigerator, and dishwasher. It will definitely include an HVAC system.
Are Turnkey Rentals a Good Idea For Renters?
Renter’s shouldn’t have to do repairs on the property. And they certainly shouldn’t have workmen come in to replace the carpets or redo the plumbing 2 weeks after they move in. So, yes, when renting, turnkey is the only way to go.
Are Turnkey Rentals a Good Idea For Investors?
Well, your ideal real estate investment strategy depends largely on one question. Do you plan to flip the house or rent it out?
Either option takes serious commitment as well as research. So, before anything else, the investor must answer this question.
Next, if you do plan to flip the home, it’s best to buy a fixer-upper. You’ll buy it at a low price, get the work done, and then sell it for much more.
This is not a good idea if you’re planning to rent it out. As a landlord, you only profit when you have tenants. And that’s difficult and time-consuming enough as it is.
Waiting for work to get done on the house will delay this even longer. Thus, if you plan on being a landlord, it’s always wisest to choose turnkey rental properties for sale in your area.
Turnkey Is Not a Guarantee
“Turnkey” is a vaguely-defined matter of opinion. Always check the property yourself to make sure it lives up to your standards of “move-in ready.”
Know Anyone Else Who’s Looking Into Turnkey Rentals?
We hope this guide has helped you out a lot. We also hope it will help others.
To that point, do you know anyone else who is interested/wants to know more about turnkey rentals? If so, please share this guide with them.
Next, check out more of our top financial advice. For instance, learn the most important facts about Memphis real estate investing or get tips on managing your finances in the bank. Find these and other helpful topics on our Finance blog.