Renter households have grown at a rate exceeding homeowner households by close to a factor of three, according to GlobeSt.com. The rental market has shifted into high gear, but getting into the investment property business scares away some investors.
Rental investment properties don't always need a lot of energy to get started, though. Turnkey property management companies take the complexity out of the process.
How does turnkey management work, though? What can property management services do to ease the shift to real estate investment? We'll get you started with information on the basics.
What Are Turnkey Properties?
Turnkey real estate refers to properties that someone has already prepared for move-in. These homes have basic appliances already installed and any expected amenities ready to go. Moving in would prove as simple as turning a key.
Some buyers use turnkey properties to expand their portfolio after getting their start in real estate. Others purchase a turnkey property as their first. No one answer fits everyone's portfolio.
Out-of-State Property Ownership
Many turnkey property investors want hands-off property management strategies. They often come from expensive property markets like Honolulu or New York. Choosing to invest in places with cheaper real estate, like Pittsburgh or Detroit, can stretch the same dollar further.
Diversification
Spreading investment across multiple markets can diversify a portfolio. If you've gotten your feet under you with a couple of great local properties, a turnkey property in another state can reduce sensitivity to shifts in your local market.
Look for a market with different price pressures from your own. Diversifying your portfolio prevents long-term problems.
What Is Turnkey Property Management?
Due to the frequency with which investors purchase turnkey properties from far away, they seek companies that will handle day-to-day duties for them. Some companies specialize in these rental property solutions. Turnkey property management can handle both residential and commercial properties.
What to Look For
The real estate management company you pick should have solid reviews and a good history. You should also identify how you'll communicate with the property management company.
Make sure the company handles turnkey properties. Different companies handle different types of properties. If you can't tell which services a company offers from its website, contact them.
Ready-to-Go Management
Some properties have a management company and tenants already ready. When you purchase a property advertised as turnkey, make sure you know what you're getting. You should ask questions about:
- Current tenants
- Current management partners
- Ongoing tenant issues
- Local legal issues to watch out for
While turnkey properties can provide an easy onboard to property investment, you'll still want to do your due diligence.
Keying In
Turnkey property management can help diversify your portfolio or get you started fast. As long as you look at what you're buying before you leap, you can turn this kind of property into a hallmark of your portfolio.
Did you purchase a turnkey property without a management company? Contact us at The Burgh Property Management. We want to help your property rise in value over time instead of just keeping the lights on.
If that sounds like a great deal to you, take a look at our residential property management services in the Pittsburgh, PA, area.
