In May 2021, existing home sales in the U.S. generated 5.8 million dollars in one month alone. Compared to a year ago, inventory is down but homes are selling for at least 20% more.
The interest in the market is already there, but the high cost may keep some prospective home buyers away. With a market so hot, it's a great time for real estate investing through turnkey property rentals.
The trouble is, property management is a full time job.
Luckily, turnkey property management will help you earn money on your investments without taking up all of your time. Read on to learn more about this type of property management to see if it's right for you.
What Are Turnkey Rentals?
Flipping houses is a popular strategy for private real estate investing. The trouble is, it takes time to do renovations and requires a fair amount of capital to cover the costs. Plus, since it's a strategy in up-and-coming neighborhoods, it's often an investing risk.
Turnkey rentals offer an alternative to house flipping. A turnkey rental has already been renovated and is ready to rent out immediately after the purchase.
The biggest benefit to turnkey rental properties is that they can start creating income right away. Plus, since the work is already done, you won't have to worry about the time and expense of repairs.
A Property Manager Is Key
Owning rental property can generate income and can be a valuable asset. But, it's still a big responsibility that can can be a major source of stress.
Even though turnkey properties won't require any renovations, you'll still have to find reliable tenants, handle maintenance, and collect rent.
Hiring a property manager can ease the burden of dealing with tenants and managing the property yourself. The trouble is, you need to find a property manager you can trust.
How Does Turnkey Property Management Work?
While there are different types of turnkey property management companies, they all offer property management services. That means they'll handle rent collection, maintenance, finding tenants, and more.
But, these companies differ when it comes to your business agreement.
In some cases, you'll buy the property directly from the management company and they'll manage the property for you through a partnership. In this setup, all of the rental income and expenses will go through their company and you'll get a check for what's left over.
In other setups, you buy the property outright and handle the mortgage payments yourself. You pay the property management company as part of your business expense, but you have a bit more of a hands-on approach.
Before you sign any agreements, make sure you understand the specifics.
We Can Help With Turnkey Property Management
Turnkey property management can take the pressure off of you. You'll get the income without the hassle of being a landlord.
If you're a real estate investor in need of property management services, HomeRiver Group Atlanta can help. We can handle everything from marketing your rental properties and finding tenants to doing maintenance and collecting rent.
Contact us today to learn more or get started with us.