The condition of the economy can leave retirees and those getting ready to retire with uncertainty about their financial health and future. Turn key rental properties are an investment that may help you put a financial security cushion in place, allowing you to feel better about your retirement income position. You should examine the pros and the cons associated with this investment opportunity to see if you feel comfortable placing your money in turn key rental properties.
Turn key rental property investing involves investing with a company that purchases, rehabs, and rents properties that are usually some distance from where you live or retire. These “third party” companies will usually make the process so easy for you that it is compared to “turning a key.”
Some of these companies will do ALL the heavy lifting by purchasing, doing the rehab, and renting the property. They then offer it for sale to you the investor and manage the tenants and property. Other companies offer you properties that need you to do the rehab, but they will manage everything else such as property management. If you are leaning toward investing in real estate, carefully research turn key companies to find out the details of what they expect of you and make your decision based on your comfort level.
Examining the Benefits of Turn Key Rental Properties Versus Doing it Yourself
- A Good Company Will Know the Market: They will have the information and an insider view of the neighborhoods and the real estate market that would take you much longer to learn. A company that has done their homework, or has experience will be able to pinpoint where people want to live. They can even tell which streets are preferred, the property value trends, crime statistics, and have access to information that is usually only known by locals.
- Experienced Staff: Look for a company that offers help with turn key rental properties with an experienced staff. These valuable people serve you, even if you do not live in the area. They have a marketing plan and they implement it like a well oiled machine. They can be there for the renters should problems develop on the property that needs to be repaired. They deal with the problems so you do not have to. Ideally, they create a simple system for you that require almost nothing more than writing or receiving checks.
Look At the Potential Negatives With Turn Key Investing to Make a Informed Choice
- Your Comfort Level Regarding Trust: Relying on a company, its staff, and their experience to choose a profitable real estate property for you is the biggest risk in this type of investment. They have to be paid whether or not your property turns out to be profitable or not. This is why it is so important to do your research. Choosing a company without a firm idea of their success and reliability could result in owning a money pit and having to pay the shady people who took advantage of you.
- Look at the Financial Information With Your Eyes Wide Open: The turn key property companies have to make money too. The ways they do this are: buying the property at a lower price and selling it at market value. They charge you a fee for property management as well. Often times, leveraging their experience can outweigh the fees charged. It all depends on your experience and available time for this type of investing.
Your investing decision will likely be made by how much work you want to do, and if you want others to take care of everything so that all you have in your hands are an income check or making a payment for work done to your property.