Turnkey Rentals and 3 Pitfalls to Avoid
MartelTurnkey turnkey rentals are considered a solid investment for anyone looking for passive income. Our turnkey rentals are chosen with great care and sold with property management and paying tenants in place 100% of the time. But there are lots of turnkey rentals on the market from other companies that may appear equally attractive—at first glance. Real estate investors need to know that not all turnkey rentals are smart investments. There are certain things you need to look for in a turnkey rental investment – and pitfalls to avoid. Here’s a list of pitfalls to watch out for.
1. Being Drawn to Appearances
When shopping for a turnkey rental, keep in mind that you’re not shopping for your primary residence. This isn’t the place where you need to feel proud to bring home your family. No one’s going to be judging you by how attractive your turnkey rental houses are.
Don’t be drawn in by inexpensive decorative touches when considering a turnkey rental investment. Anyone can paint shutters and plant a potted geranium on a porch and try to convince you to invest, but that doesn’t make the property more valuable to you. These niceties can be useful in helping to attract tenants later on, but you shouldn’t be lured into investing just because a place is “cute.” You need to dig into the numbers, which are always available for close review with all of our MartelTurnkey turnkey rentals.
Furthermore, it’s not necessary for you to do time-consuming drive by’s or expensive piloted fly-overs to evaluate a property, as this book about out of state rental investing explains in depth. Photos are sufficient as long as you have all the other necessary information to make your decision.
2. Neglecting to Ask Questions
Before you invest in a turnkey rental, you should have every single one of your questions fully answered. A quality turnkey rental company will be happy to answer all your questions. At MartelTurnkey, we answer our own phones and our team is ready to answer any question you have, no matter how small. When you’re a successful person in other areas of your life, you may feel embarrassed to ask things like what certain real estate jargon means, or how the ROI is calculated. But if you don’t ask, you won’t learn, and our goal is to educate all of our investors.
Never give anyone your investment dollars until you have every last one of your questions answered. You don’t want to find out after the fact that you misunderstood some aspect of your investment choice.
3. Overlooking the Importance of the Turnkey Rental Company
With turnkey rentals, it’s just as important who you do business with as it is which turnkey rental property you buy. Overlooking the importance of your choice of turnkey rental companies is one of the most common pitfalls that real estate investors fall into. Turnkey rental companies don’t need special licenses to operate. As such, anyone can make one up and start selling turnkey rentals. This makes for a treacherous environment for real estate investors. You need to carefully vet any turnkey rental company you consider buying from. Look at their testimonials, check out their business rating and see what others are saying about them online and in person. Buying from a bad turnkey rental company can end up with you owning a property that hasn’t been carefully rehabbed, has back taxes due or has other serious issues that can tank your investment.
These are the most serious and common pitfalls associated with investing in turnkey rentals. At MartelTurnkey, we work hard to make sure our investors are fully informed and have access to beautifully rehabbed investment properties in several markets. We have a long history of customer satisfaction and plenty of testimonials to back up that claim. If you’d like more information about our available turnkey rentals or about our company, please contact us.