how a turnkey property works
turnkey properties grew in popularity following the housing market decline of 2007 2008 when it became cheaper to buy homes than rent them in most parts of the united states in fact nationwide buying is 30 cheaper than renting and in many low cost of living regions it s even cheaper than that in markets where real estate is particularly expensive such as new york investors will often seek to create revenue streams by buying rental properties in parts of the country where property is cheaper and hiring property managers to take care of the rentals for them leaving them to do little more than collect profits from afar this investment approach is especially appealing to individuals who desire exposure to the real estate market but who do not have the time or ability interest to renovate a home or handle maintenance issues in most cases the investor will hire a separate company to manage the property often there will already be a tenant in the property when it changes hands simplifying matters for the investor even further the term turnkey property is not used solely by investors however in marketing literature realty companies sometimes use the phrase to describe any renovated move in ready home that is up for sale while some homebuyers relish the thought of renovating a property themselves those with busy lifestyles or who lack home improvement skills may prefer a turnkey property that needs no work 