Next Steps — What to Do After You Close on your Turnkey Rental
You did it! You’ve patiently waited the 6 – 20 weeks it takes to renovate the house and put a tenant in place. You wired your earnest money deposit, agonized over your financial disclosures, and navigated a labyrinth of online portals (with MartelTurnkey there to help you at every step!)
You’re finally at the finish line! It’s closing day, and you are the proud owner of a turnkey rental property!
… Now what?
Many people have their eyes so fixed on the watershed moment of closing day that they give little thought to what comes after closing day. After all, the story continues. You own a rental property! Shouldn’t you … I don’t know … do something?
Some people check out, like high school seniors a week before graduation. Other people try to do too much, forgetting that this is supposed to be a turnkey asset to create passive income (not everyone likes to be passive).
The correct answer is somewhat in the middle. Here are our recommendations for the next immediate steps after you close on a turnkey rental …
1. Set Up a Call with the Property Manager.
Your property manager is your eyes and ears, your boots on the ground — a combination of a guardian angel and nosey neighbor. Start off on the right foot with a kickoff call to get you on the same page about the property. The property manager can probably allay many of your concerns, suggest more next steps, and reassure you that your turnkey rental is in good hands.
2. Follow Up on Any Outstanding Construction or Inspection Items.
Sometimes every construction item isn’t completed by closing day. For example, our vendors don’t pour concrete in the winter, so if the property needs a new driveway it may have to wait. Talk over any outstanding items on the construction to-do list with your property manager, contractors, or us. If you decided to get a home inspection, there will probably be a laundry list of uncorrected defects, many of them low-priority. Go down the list and decide which ones to keep an eye on and revisit.
3. Consider Extra Enhancements.
If you feel like going the extra mile, consider some curb appeal or interior enhancements — red geraniums in the garden, a coat of yellow paint on the shutters, permanent shower rods, window blinds, etc. Talk to your property manager about what might spruce up the property. It probably won’t get you more rent in the short term, but it may encourage your tenant to renew or at least help with the next tenant. Besides, showing your property some TLC is good for morale and helps elevate the entire neighborhood, which can only help your property value.
4. Review the Appliance Situation.
Depending on the location, some houses are rented with appliances, some without. Don’t rush into an appliance situation based on what is normal in your area or what you would like — check with the property manager about what local tenants expect. You can always install appliances or upgrade the current ones, especially if it will help convince your tenants to renew and save you turnover costs.
5. Follow Your City On Social Media
All real estate is local, and you want to keep at least one finger on the pulse of the community you just bought into. Follow local landlords, property owners, economic, and newsgroups on social media. Consider subscribing to the RSS feeds of a few local blogs.
Now you have a few proactive steps to take after closing. If we may suggest a few others on a personal note — message us at MartelTurnkey with a testimonial for us to share on our website, tell an investor or aspiring-investor friend how we did, and let us know your timeline for your next purchase on the road to financial freedom!