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How College Graduates Can Buy Turnkey Rentals

There’s a misconception that only seasoned investors buy turnkey rentals. While it’s true that the majority of turnkey rental buyers are older, that doesn’t mean that this investment class is off limits to younger buyers. In fact, investors in their early 20s have more to gain from buying turnkey rentals than buyers who start investing in real estate later in life.

 

 

The Benefits of Investing in Turnkey Rentals Right After College

 

The earlier you buy a property, the more potential there is for that property to exponentially increase in value during your lifetime. With the right turnkey rental in the right market, your early investment could translate into a virtual insurance policy when you need funds for things later in life. You could sell or borrow on a turnkey rental to get funds for a down payment on a private home purchase, money to start a new business or money to pay for unexpected expenses such as medical bills.

 

The income from a turnkey rental purchase can be used to help pay off student debt. As soon as you graduate, you’ll be responsible for making payments on your student loans. This obligation takes a bite out of the monthly income you receive from your first “real” job.  Every dollar you get from your turnkey rental helps offset your student loan debt against the income from your new job.

 

The on-time mortgage payments you make on your turnkey rental purchase help establish and build your credit as a newcomer to the world of debt management. Maintaining excellent credit is key to financial success. Few recent college graduates have sufficient credit histories to qualify for larger investment asset types that can build great wealth. But when you start establishing your good credit with regular mortgage payments right out of college, you put yourself on the fast track toward real wealth-building strategies that can sustain you and your family for generations to come.

 

 

How to Invest in Turnkey Rentals as a Recent College Graduate

 

The first thing to do if you’re interested in investing in turnkey rentals right out of college is to work with a qualified and experienced turnkey provider. Not all turnkey providers are the same; not all turnkey providers offer the same services.

 

What you’re looking for is a turnkey rental provider that will respect your investment dollars “even though” you’re a young recent college graduate. You want a turnkey provider that doesn’t have a problem showing you the ropes; a provider that will have patience with all your questions.

 

Look for a turnkey provider that offers help with finding financing. You want a company that works with a variety of buyer scenarios, including those who don’t yet have regular W-2 income from a salaried job. This will enable you to explore creative financing options that best align with your unique situation as a recent college graduate.

 

Use a turnkey rental provider that offers affordable properties. While there are plenty of turnkey rental properties around the country at high end prices, you don’t need to overextend yourself financially in order to get into turnkey rentals as a recent college grad. In fact, you can find very affordable, cash flowing turnkey rentals for less than $20,000 down.

 

Finally, work with a turnkey provider that understands your unique needs and goals as a young college graduate. Here at MartelTurnkey, we’re very sensitive to the needs of college graduates. One of our owners, Antoine Martel, hadn’t even graduated from college when he bought his first turnkey rental property. If anyone understands your position as a recent college graduate, it’s us. If you’d like to get started as early as possible in real estate investing in turnkey rentals—even if you haven’t yet graduated from college—get in contact with us. We’d be happy to answer any questions you have, help you get started or just get you on the list to receive regular email updates from us. At MartelTurnkey, we have no preconceptions about your viability as a real estate investor, no matter what your age. We look forward to hearing from you.

 

 

 

 

 

 

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Frequently Asked Questions About Owning a MartelTurnkey Home

Are you thinking about buying a turnkey rental from MartelTurnkey but not sure what it would be like? You can always contact us with your questions and we’ll return your call or email right away. But if you’re just curious about some basic aspects of owning a turnkey rental from MartelTurnkey, the following answers to commonly asked questions may help.

 

Do I have to find a property manager myself?

 

When you buy a turnkey rental from us, there is already a property manager in place. We have been using these companies for years, and they manage our own rental property portfolios in these markets. However, if for any reason you want to use a different property manager, you can. You’re under no obligation to continue working with the same property manager that comes with your new turnkey rental. In that case, you’d need to either manage the property yourself or find your own property manager in the area.

 

Do you offer property management services?

 

MartelTurnkey sells turnkey rentals out of state. As such, we don’t directly provide property management services. What we do for every property we sell is get a quality, local property manager in place. Your property manager would be the same company that we use to manage our own portfolio in the market.

 

How do I know the existing tenant is good?

 

Every property manager we hire adheres to strict tenant vetting procedures in addition to our own tenant criteria. Tenants are screened for evictions, criminal behavior and credit, just like you would do if you were managing the property yourself. When you take over the property you’ll have a vetted tenant in place who has already begun making rent payments on time.

 

Will the tenant have my phone number?

 

No. Tenants are not provided with any of the landlord’s contact information. The only way a tenant would have that is if the owner directly gives it to the tenant. In almost all cases, the tenant doesn’t even know the name of the owner of the property. This is to ensure that the tenant only communicates through the property manager. If a tenant needs to let the owner know something, they’d leave the message with the property manager, who would then contact you. Your response would also go through the property manager.

 

Can I raise the rent?

 

Any time a lease comes up for renewal, you’re free to raise the rent for the next term. When a lease expires or a tenant moves out, the property manager reviews the current rent prices in the area and other data. Based on those findings, they may suggest keeping the same rent, raising it or, in rare instances, lowering it. However, the final decision is always yours. The only time you are not able to change the rent is in the middle of a lease term, for contractual reasons.

 

What happens if the tenant stops paying rent?

 

If a tenant stops paying rent, the first thing the property manager will do is try to find out why it’s happening. Often, it’s due to a technical problem or some other temporary issue. A late fee will be assessed after the rent is late for a certain amount of time, in accordance with state laws where the property is located. If the tenant still doesn’t pay rent within the month, you may have the right to begin eviction proceedings. Your property manager can advise you as to when eviction proceedings can begin under the state laws. The property manager will take all the necessary steps, including making court appearances, should eviction become necessary. You will be notified of everything, but you don’t need to be personally involved.

 

What is the average turnover time between tenants?

 

The property managers that we have chosen for our turnkey rental properties understand the importance of quick turnovers. As soon as a tenant gives notice, the property manager starts looking for a new tenant. When a tenant vacates for any reason, a cleaning and maintenance crew gets in there right away. Once renovations have been made, property management will go in and take photos of the property and list it for rent. A tenant will then be found in one to two weeks, and that tenant will move in one or two weeks after that.  In an example like this, typical turnover is 30 days. In any case, fast turnover is always a top priority. Think of it like a racecar in the pit. Every crew member works fast and efficiently to get the car back on the track. That’s how your property manager will act on your behalf.

 

What happens if something breaks?

 

Every material object has a limited lifespan. If something breaks and is in need of repair or replacement, the property manager will take care of the actual work to get everything back in order again. They will evaluate whether it makes sense to repair an item or replace it. Estimates will be obtained for your review. You’ll be responsible for paying for the repair or replacement; this isn’t included in your property management fees. For that reason, we always recommend that landlords put aside some rental income in savings to pay for unexpected expenses like this. Having said that, in between rentals, the property manager will inspect and maintain important systems in the home (i.e., HVAC) to try and avoid unnecessary breakdowns in the future.

 

Hopefully this list has answered many of your burning questions about owning one of our properties. If you have questions that aren’t listed here, please don’t hesitate to call or email us. We’ll spend as much time with you as necessary to answer all your questions. Our previous customers are already enjoying being a landlord with their MartelTurnkey rental properties. Will you join them?

 

 

 

 

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What Insurance Coverage Is Recommended For Investment Properties?

As a landlord, you have special insurance needs. Regular homeowner’s insurance may not be enough to protect you and your investment property because landlords are vulnerable in ways that a regular homeowner isn’t. Following are some of the recommended and available insurance types to consider for your investment property.

 

Property Insurance

 

You’ll certainly need to have property insurance for your investment property. If the property’s financed, your lender requires it. After you pay off the property, you’ll want to keep this coverage in place in order to protect your investment. You may also want to look into certain riders for your policy, such as earthquake or flood, depending on where the property is located. There’s also such a thing as water line insurance, which is available as another rider you can purchase from your property insurance company. This covers you if your water line fails from the foundation to the property line. While the chances of such a failure are slim, they do occur. Repairs run in the neighborhood of $5,000, but the rider costs only a few extra cents a day. Ultimately, you’ll need to decide which riders are worth the peace of mind they can offer a property owner.

 

Liability Insurance

 

Liability insurance gives you protection against lawsuits and liability claims. It covers things like an individual getting injured on your property; whether it’s a tenant, a worker, a guest or even someone who may be trespassing. It may also cover damage to a tenant’s possessions, if that damage was proven to be the landlord’s fault. Exact coverage will depend on the policy. Typically, liability insurance would pay toward things like medical bills, legal fees and settlement costs.  

Landlord Insurance

 

You can also opt for a type of policy called landlord insurance. Landlord insurance is specifically for investment property owners. It’s not mandatory if you own rental properties, but it is worth considering, especially if you own multiple rental properties.

Landlord insurance may include both of the insurance coverage types mentioned above, as well as:

 

Property damage: This covers damage to your property from fire, storms, vandalism, theft and sometimes even tenant damage. Note that some elements of property damage coverage may overlap with your homeowner’s property insurance.

 

Loss of income: This would compensate you for loss of rental income if the property becomes uninhabitable due to fire, water damage, etc. If your rental income is a main source of household income for your family, this insurance makes good sense.

Landlord contents insurance: This would cover appliances or furnishings that belong to the landlord. This insurance is especially worth considering if you provide furnished rentals.

 

What’s the Cost of Landlord Insurance?

 

Landlord insurance expense is comparable to homeowner’s insurance. You might find a policy in the neighborhood of $500 per year. The more riders you have added on, and the more complex the property is, the more landlord insurance will cost. For example, if the property is a multi-unit with a swimming pool, obviously that’s going to cost more than a turnkey single-family rental.  

 

The two bare minimum insurance policies you’d want to have in place for your rental property are property insurance and liability insurance. These protect yourself and your property. When you choose a turnkey rental property on our website and put it under contract, we will introduce you to the insurance company we use on the ground. They will be able to get you coverage quickly and easily as  they will already be insuring the property, making it an easy transition.

 

 

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Why Invest in Memphis Real Estate?

Memphis, Tennessee is an iconic cultural center that attracts over 11 million visitors annually. Tourists and business men and women come to Memphis from all over the world; especially Canada, UK, Germany, France, Brazil, and of course right here at home in the U.S.

 

 

Memphis boasts a number of historically significant attractions such as Graceland, Beale Street, Sun Studio, the National Civil Rights Museum, the Blues Hall of Fame, and the Rock ‘n’ Soul Museum.

 

 

Musically, Memphis has the market cornered with a pedigree of musical legends who hail from “the Birthplace of Rock ‘n Roll,” including Elvis Presley, Kirk Whalum and Justin Timberlake. An even longer list of iconic musicians have drawn inspiration from the depths of Memphis’ soul. B.B King moved to Memphis from Mississippi, while dozens of others started their careers in this city, like Otis Redding, Roy Orbison, Jerry Lee Lewis, Aretha Franklin and many more.

 

 

All this goes to show that Memphis is an attractive place to live, with a rich cultural scene and a vibrant social setting. But what is it about Memphis that makes it especially appealing for real estate investors?

 

Memphis By The Numbers

 

Just over 646,700 people call Memphis home, according to the U.S. Census Bureau. The cost of living in Memphis is 15.7% lower than the U.S average. There are nearly 71,000 companies in Memphis, providing plenty of job opportunities for residents.

 

Economic Diversity

 

Fortune 500 companies with a corporate presence in Memphis include FedEx, International Paper and AutoZone. Other major employers based in Memphis are Cargill Cotton, Allenberg Cotton, Baker, the prestigious law firm of Donelson, Bearman, Caldwell & Berkowitz, Perkins Restaurant and Bakery, ServiceMaster, Varsity Brands and Gibson Guitars, St. Jude Children’s Research Hospital is based in Memphis, as are dozens of healthcare, pharmaceutical and biotech companies.

 

Landlord-Friendly Statutes

 

States mandate tenant-landlord laws. As a city in the landlord-friendly state of Tennessee, Memphis is considered a landlord-friendly city.

 

  • Security deposits are not capped. You can charge whatever you want for a security deposit. You just have to return it within 30 days after the move-out, less any charges for damage.
  • Rents are not capped. You can set any rent price you want since there is no rent control in Tennessee.
  • Late fees are allowed. You can charge a rent late fee as soon as five days after the due date, up to 10% of the amount due.
  • Eviction filings can begin in 14 days. If the tenant hasn’t paid the rent by just 14 days after the due date, the landlord can notify for eviction.
  • Move deadline is just 16 days. After an eviction notice, the tenant can be forced to move in just 16 days, allowing for a quick turnaround to get a paying tenant into the property.

 

 

These factors make Memphis an appealing location for real estate investors; the abundance of attractions and entertainment options, the economic diversity and the landlord-friendly attitude of the state and local government.

 

 

MartelTurnkey has procured several cash flowing turnkey rental properties in the Memphis area. If you’d like to get in on the lucrative rental market in Memphis, please browse our Memphis rental properties listings. When you’ve found one or two that interest you, please contact us to learn more.

 

 

 

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Almost Like Winning the Lottery: What It’s Like to Own a Turnkey Rental

If you’ve never been a landlord before, you‘re probably wondering what it’s really like to own a turnkey rental. Is it as awesome as everyone claims? The truth is, it’s probably better than what you’ve heard, especially when you get your turnkey rental through us. We can’t speak for other companies out there. Remember that all turnkey companies are not the same. There are huge differences, so you have to be sure to deal with a reputable company. But when you get your turnkey rental at MartelTurnkey, here’s what you can expect.

 

Excellent Customer Service

MartelTurnkey was originally founded to serve our family and friends. We’ve put customer service at the forefront of importance from day one. So when you buy your turnkey rental property from us, you’ll probably be a little amazed at the level of customer service you get. Our investors are constantly saying how responsive we are to every question, how far we’ll go to make sure you get the information you need to make the best decision for you. And that service extends to your property management company. After you take over ownership, you’ll likely be working with one of our thoroughly vetted property managers. We chose each of them because they reflect our dedication and commitment to customer service. It’s customer service you can count on from the time you first contact us, all the way through to your ownership experience.

 

Reliable Income

Once you own a turnkey rental property from MartelTurnkey, you can look forward to receiving regular rental income each month. Our single family home rent prices are set so almost anybody can afford to pay their rent, no matter what happens with the economy. As Antoine Martel says, “Tenants can afford to pay our rent with just a job at a local coffee shop .” All of the turnkey properties that we sell already have a reliable tenant in place at the time of closing. If you buy one of those, the next rent payment goes straight into your bank account. As a turnkey rental owner, you’ll appreciate having that extra income each month. And best of all, you don’t have to lift a finger to work for it. It’s passive income at its finest.

 

Support and Maintenance

Every homeowner knows that issues come up. Maybe a faucet develops a leak. Or a screen door hinge comes loose. If you were a regular landlord, your tenant would be ringing you and asking you to run down and fix it. But as a turnkey rental owner, you don’t have that situation. The tenant contacts the property manager, not you. The property manager gets a handyman out there to fix it, not you. The tenant doesn’t even have your phone number, so you’ll never be disturbed with a maintenance request. And, the property manager is working for your interests, so they keep repair and maintenance costs to a minimum. If something needs to be replaced, they’ll get some estimates and you’ll be billed accordingly. That kind of support and maintenance doesn’t exist with other forms of property ownership. But you can count on it when you buy a turnkey rental from MartelTurnkey.

 

Now you can see that owning a MartelTurnkey rental property is actually a little bit like winning the lottery every month for the rest of your life. You just keep collecting that monthly income over and over again without the traditional hassles of being a landlord. If you’re even the slightest bit curious about what it would be like to work with us, fill out our contact form or give us a call. Let us show you firsthand what real customer service looks like.