Real estate is a booming industry, and you won't be surprised to know that there are over 20 million investment properties across the US. Of those, many of them are what's known as turnkey properties.
Most of us don't even know the turnkey definition let alone the benefits, so let's change that! Let's talk about turnkey real estate and why it's such an appealing offer for investors!
What Is Turnkey Real Estate?
Turnkey real estate is a property that has been recently renovated or brought up-to-date, so all you have to do is purchase it and you can immediately rent it out. Sure, you may find some fixer-uppers for cheap but you'll have to sink thousands of dollars and weeks or months of time renovating before you see a dime from your investment.
The benefits of turnkey real estate are obvious; you don't have to do much. You can start making money right away. For somebody with other investments or a job to worry about, that's a major selling point.
Turnkey Real Estate Saves Money
If you buy a fixer-upper, you may be able to renovate it enough to live in. However, if the structure or the equipment is old, there will likely be other expenses that come up as the years go by.
Even on an average building, landlords should expect to spend around 1% of their total property value every year just on maintenance. That's $3,000 on a $300,000 building!
Major repairs like a damaged roof can take away your entire year's profit, so having everything done and ready to go will maximize your profits for the first several years or even decades.
If you buy a recently renovated building in the right parts of a town like Salt Lake City, you're basically guaranteeing yourself a safe retirement. In terms of longevity, rent prices, and predictability, there's nothing better than turnkey solutions.
They Generate Passive Income
The less work you have to do to maintain your property, the better. With turnkey investments, you can just set it and forget it, sit back, and let the checks come in.
Having a recently renovated property will also allow you to charge more for rent, increasing your income, and fill vacancies quicker, limiting your losses.
Nothing generates passive, sustainable income quite like hiring management for your turnkey rentals. Not only will you have your marketing, tenant screening, maintenance, and all other responsibilities taken care of, you will be generating the maximum amount of profit by not having to sink money into repairs.
Make sure you do your research on the property and find the right management team, as this will secure you the best long-term investment possible.
Now that you know some of the benefits of turnkey real estate, there's no time like the present to get started! Rent out a property that you can trust for a long-term investment, then stay up to date with our latest real estate news, and don't forget to reach out for help with management!