Choosing to invest in a turnkey rental property is a wise decision. As a turnkey property, you can assume that any needed renovations have been completed, and the property is ready to welcome tenants. That means you will see immediate income as the property owner. It sounds easy enough, but there are a few things to consider before buying a turnkey rental property.
Existing Tenants
Before signing up for a new property, it is important to know the current tenant situation. What types of leases have been signed? Are they good tenants who pay their rent on time? What is the renewal rate like for the property? Has it ever sat vacant?
These are a few questions to ask to gain an understanding of what you may be walking into.
Management
As you consider the purchase of a turnkey operation, you may already have a management plan in mind. Since the property is turnkey, a management process has already been established, and you’ll need to know what that is and whether management comes with the building.
If not, it will be necessary to have your own selection of property management ready to go.
Renovations
Don’t just take a property owner’s word that renovations are complete and up to your standards. You aren’t looking for a money pit but a turnkey that’s ready to rent. It is okay and expected that you will ask for proof of what has been done to the property and conduct your own walkthrough and inspections.
If anything looks sloppy or your gut says that renovations were done haphazardly, walk away from that property and invest elsewhere.
Mechanical System
Depending on what type of rental unit you are considering investing in, mechanical systems left unchecked could easily cost you thousands of dollars down the road. Have all systems thoroughly checked before investing.
Excalibur Homes is your experienced property management company in GA. Our knowledgeable staff can answer your questions about things to consider before buying a turnkey rental property.
