What is a Turnkey Property?
Updated: Sep 1, 2020
What is a turnkey property?
The term turnkey is defined as “a provision of a complete product or service that is ready for immediate use”. The concept of turnkey property is it only needs to turn the key to unlock the house and start the operation.
So a turnkey property is a move-in or rental ready house or unit that can be purchased from a turnkey provider. Often, it is sold by a property company that specializes in renovating and repairing old properties.
How does Turnkey Property work?
Every property company could have different business models or packages that they offer when it comes to turnkey properties. But the concept is just the same. Typically, a turnkey company restores properties in locations with strong rental markets. After which they will sell the turnkey property to rental property investors or to individuals who would like to own a turnkey house.
Often, investors who would like to create cash flow streams would buy rental properties in different parts of the country where the property is cheaper. They would hire property managers to take care of the rentals for them, so they get to collect the profits from them.
Turnkey properties are often repaired and renovated.
Turnkey real estate investors usually rent out the properties to cash flow streams.
How to generate cash flow with Turnkey Property?
Since the intention of turnkey property is for investors to turn the key and the operation will start so they don’t need to do any other refurbishment to the property. It is expected to quickly generate revenue by making it available for tenants immediately. Thus, the turnkey property is a great opportunity for investors who would want to earn passive income through rentals with little or no work required in acquiring, renovating and managing a property.