Surveys conducted in 2022 found that individual investors owned 70% of rental properties rather than larger companies. Many of these properties are turn-key properties.
What is a turn-key property, though, and how does it differ from other kinds of properties? How does turn-key property management work, and what do property management companies do with these properties? How do you manage properties to make them as comfortable as possible?
We'll answer these questions and more in this article.
What Is a Turn-Key Property?
Before discussing the best ways to manage a turn-key property, we should talk about how they work. A turn-key property is a property that someone buys to rent out. Oftentimes, these properties are older ones that investors buy at a low price and then renovate.
This follows the trend of 'flipping' properties and reselling them for a profit. Keep in mind that this is often an expensive process, but worth it if you have the money.
Flipping properties has become much more popular in recent years, with a major surge in 2020-22. During this time, the number of flipped houses increased by almost 200,000 and jumped from under 6% of home sales to over 8% of home sales.
What Are Property Management Companies?
This brings us to property management companies. Property management companies handle day-to-day maintenance of properties so you can sit back and reap the profits.
A property manager can help with everything from arranging listings, background-checking tenants, hiring maintenance people for repairs, etc. Their job is to make sure your property is running while bringing in as big a profit as possible.
What are turn-key property management services? They're the same thing except that they handle turn-key properties.
Expert Advice
While it's not their main job, a turn-key company can also advise you on major decisions related to your property. For instance, is investment in solar power worth it? Solar power is profitable in the long run, but can you offset the difference until it pays off?
Should you allow pets in your property? How much money do you stand to gain from doing so? What are the costs associated with letting animals into your property?
Addressing issues like this and weighing the pros and cons is an important part of being a landlord. You need to keep your tenants happy whenever you can. Happier tenants are often willing to pay higher rent and might stay longer.
Hiring Turnkey Property Management in Putnam, CT
Property management can be difficult, and turnkey property management is no exception. Hiring a property management company will make the process much easier. We've discussed what these companies do and how they can help you here, but you can never know too much.
You can learn more about these companies by reading our blog. If you're looking for a property management company in Putnam, CT., contact us at Property Management Inc.
We are skilled property managers with years of experience in the business. We also have a background in accounting, so we know how to handle money down to the last penny.
