8 Tips For New Turnkey Rental Owners
Have you recently bought your first turnkey rental? Turnkey rentals are one of the best real estate investment decisions you could ever make. As a new turnkey rental owner, you may have a lot of questions about what’s next. While there isn’t exactly a manual for new turnkey rental owners, we can let you in on what to expect in the years to come, and how to make the most out of your new passive income source.
1. You’ll Start Getting Income Right Away
If you’ve purchased a turnkey rental from us with a tenant in place—as all of them have—you can expect to receive your first rent check as soon as the next first of the month rolls around. Make sure that before closing you get all the documents that the property management company has requested from you. This will include setting up your bank account for the funds to be sent to the correct account. Be mindful that you can have the funds sent to any account of your choosing. Some investors make separate banks accounts for their investments and others do not; the choice is yours.
2. Set Up Contact Information For Your Property Management Company
If you haven’t already done so, gather all the contact info for your property management company, and in particular your representative. You’ll also want to organize your online portal username and password so you can log in and view or download reports pertaining to your property. Your property management company rep can help you register for the first time.
3. Don’t Expect to be Busy
Turnkey rental ownership is a very passive income source. There really is very little for you to do, so don’t expect to be kept busy with it. Beyond organizing your home files and letting your CPA know you’ve purchased a turnkey rental, there’s not much else you’ll need to do except collect those rent checks!
4. Meet With Your CPA
Speaking of your CPA, you’ll want to either meet in person or talk on the phone to learn more about all the new tax deductions you’ll be entitled to as a turnkey rental owner. This is so that you’re sure to retain the records relating to the ownership. Your property management company will automatically provide you with receipts and records. You’ll just need to access them via your online portal and hand them over to your CPA when tax time comes.
5. Put Some Money in Savings
It’s prudent to save a percentage of the rental income for future expenses. As with regular home ownership, there will be things that need to be repaired or replaced at some point in the future. These expenses will be tax deductible but you do still have to pay for them. To ensure you can readily do that, save some of the rental income.
6. Save Money For Your Next Rental
Another reason to save rental income rather than spend it on luxuries is to buy another turnkey rental in the future. Just think of how your passive income can grow when you build up a portfolio of turnkey rentals over time. You could conceivably live quite comfortably solely on your turnkey rentals once you have a large enough portfolio.
7. Leverage Your First Turnkey Rental to Buy Another
Once you have sufficient equity built up, you can leverage your first turnkey rental to buy another. One such method is refinancing. For more information on how to refinance your turnkey rental and make another turnkey rental purchase, just contact us. We can put you in touch with willing lenders who are familiar with turnkey rental investment strategies.
8. Don’t Overthink the Tenants
When you have a property management company in place, you really don’t have to worry about the tenants. The property management company takes care of vetting tenants, renewing leases and filling vacancies. Even if an eviction becomes necessary, the property management company will handle that on your behalf. And remember, your MartelTurnkey rental property already has a trusted property management company in place.
Now that you’re a new turnkey rental owner, you can look forward to years of passive income. Thank you for choosing MartelTurnkey. If you have any other questions about your property or what to expect, please feel free to contact us.