What to Look For in Turnkey Property Renovations
When considering buying a turnkey rental, investors should carefully consider the kind and quality of the renovations. As we’ve discussed in previous blog posts, a turnkey property isn’t truly turnkey unless it’s already renovated when you purchase it. A new investor shouldn’t need to put money into renovations immediately after taking ownership. Whenever you’re looking at a turnkey rental property to buy, here’s what you should look for as far as renovations.
Quality of the Renovations
Unfortunately, it’s all too common for contractors to take shortcuts when it comes to construction. According to people like that, shortcuts help them to make more profit. But there’s a difference between being efficient and taking shortcuts. Efficiency is great. If a contractor can get work done faster or better by using a different method or new tools, that’s great. They make money and the investor saves money. But if a contractor is taking shortcuts that impact the quality of the work, that’s not good for anyone; the investor, the future tenants, or the contractor.
The quality of the renovation is as important as what renovations are done in an investment property. If the bathroom fixtures were replaced, that’s good. But if they were replaced with used parts or installed incorrectly, that spells trouble for the new owner – you. Seeing pictures of a newly-repaired front porch railing makes an investor feel good. But if the new railing hasn’t been properly installed, it poses a danger to future tenants and ultimately, the owner-investor. The point is that, as well as reviewing the list of renovations, it’s important to consider the turnkey company that’s handling the renovations. As always in business, know who you’re dealing with. At MartelTurnkey, we fully renovate our turnkey properties before selling them to investors. But that’s not all. We have boots on the ground overseeing renovations on all of our properties. We make regular visits to our properties in the development phase, in other states. We even have one of our own family members, Etienne, on-site in Memphis, overseeing renovations. And if you know Etienne, you know he won’t stand for anything less than perfection!
What Renovations You Should Look For
The renovations that you should look for in a turnkey property are ones that add value, safety and aesthetic appeal. For example:
– Refinished floors
– Replaced tile/vinyl
– New carpeting
– Basement waterproofing
– Siding repair/replacement
– Roofing repair/replacement
– Fencing repair
– Deck/porch railing repair/replacement
– Fresh hardware
– Fresh paint
– Repaired/installed gutters
– Replaced plumbing fixtures
– Replaced lighting fixtures
As you can see, some of these renovations are for aesthetic purposes; i.e., paint, hardware. Others are important for the safety of your tenants and their families; i.e. railing repairs, etc. Finally, others are essential for the durability and integrity of the property itself; i.e., waterproofing, gutter repairs, etc.
When looking for a turnkey rental property to buy, review the list of renovations. You should see a mix of all three categories of renovations. If you don’t, it’s possible you should look at a different turnkey property company. Because any turnkey rental property company should have all these things in mind; the safety of the tenants, the attractiveness of the property, and the value and integrity of the property.
Improvements That Are Less Important
Just as much as it makes sense to consider the type and quality of renovations on a turnkey property, you should also be aware of the types of improvements that are less important. The reason is that some turnkey companies do their best to sell properties that are in less than ideal condition by distracting potential buyers with “bling.” For instance, brightly painted shutters and potted geraniums on the front stoop will certainly add curb appeal. But surface embellishments don’t add value to the property. If the front lawn is lush and green but the hardwood floors in the living room are splintering, that’s a good sign that the seller is unwilling to do a quality renovation. When a turnkey property for sale has quality renovations, safety-minded renovations and aesthetic improvements, that’s a good sign that the seller actually cares about providing value to the investor.
MartelTurnkey sells turnkey rental properties that we own ourselves. We analyze the value of the properties ourselves. We oversee the renovations ourselves. Any time you want to review the list of renovations on a property, you can click on that information on the property listing page on our website. We are personally vested in your success. We want to be your partner as you grow your real estate investment portfolio. Contact us today to get started!
“I highly recommend working with Antoine and Martel Turnkey. As a first time real-estate investor, Antoine gave me a great understanding of an industry I was unfamiliar with. Their properties are in great markets, fairly priced, and are truly turnkey. There were zero improvements I had to make on the property I bought from them in Memphis. If you are looking for a good investment opportunity, work with the MartelTurnkey team.”
~ Simon, Long Beach, CA