Turnkey Rental Investing 101

what is a turn key investment property

Turnkey Rental Investing 101

Often we think of rental property investing as a complex task.   Having to find a great deal in a desirable location.  Then do the needed repairs in order to rent it out.  List the property for rent and find a tenant.  Then worry about the costs, risks, and returns.  There are so many unknowns and required skill sets, it’s easy to understand why some people shy away from being property investors. However, the returns are some of the highest around.

What if you could buy a property where all the work had been done for you? Simply enjoy your investment and the returns.

Well, that’s where turnkey investment property comes in.

A turnkey rental or investment property is one where someone has rehabbed a property, placed a screened and market rent tenant in it, and installed professional management services before selling it to an investor.

Turnkey properties can be very appealing to people who want to invest in a market from a distance and know exactly what their return will be from day one of ownership.

They work really well for people who are interested in real estate investing.  Especially those who don’t have the time, interest, or experience to rehab a property.

Investors who are excited to find a deal, rehab it and tenant it, are not ideal turnkey owners.   Turnkey properties generally sell at or close to market value, so there is little built-in equity at purchase.

However, for the owner who simply wants to buy and begin seeing a return, a turnkey property can be a great way to go.

Of course, any smart investor wants to remediate risk, and a turnkey rental is no exception. Buyers need to do their due diligence with the company they are purchasing from.   Th have a general point of sale inspection to be educated about the property itself.

Ideally, a turnkey investment property will be purchased from a company which has honest and transparent business practices.  A philosophy which resonates with the buyer, and professional management in-house. They will be experts in the local market and will offer some kind of warranty on the house for the buyer’s peace of mind.

Southern Sky Realty, buying, selling, investing, property management
By: Vanessa Gilbert

Southern Sky Realty will be offering turnkey rental investment opportunities later this year, please sign up below if you would like more information.

Interested in a turnkey property?

What does a property manager do?

Southern Sky Realty, Property Management

What does a Property Manager do?

What does a Property Manager do exactly?

Maybe a better question would be….what DOESN’T a Property Manager do?

Here is a brief list of what a property manager might do for the fee you pay them to manage your property. They are all items that Southern Sky Realty includes as part of their management package.

• Meet or confer with an owner of the property, and make sure all details for management are complete.

• Visit the property, evaluate it for the rental market, and suggest or contract ways to make it rent for its highest value.

• Photograph it, create a compelling description and list it in multiple forums such as Zillow, Craigslist, Website, etc. Maintain those listings. Renew and refine as needed.

• Take inquiries, schedule showings, meet prospective renters, answer questions, explain the process and take applications.

• Process applications. Communicate with prospective tenants regarding proof of income, credit, criminal and eviction check, parameters for approval, call for landlord reference and present to the owner for final approval.

• Arrange deposit payment, create a lease and required documents, set an appointment for keys, meet new tenants at the property, do a walk through to set a baseline for the condition, and ensure utilities are in tenant’s name if applicable.

• Take and deal with early tenant move in concerns such as unexpected or unknown maintenance.

• File and share lease with the owner, disperse funds, remove listings.

• Schedule a 90-day post move-in inspection.

• Rent collection by mail or EFT. Monitor payment status, send reminders, facilitate timely rent payment. Dispersal to the owner by the 15th of the month.

• Take maintenance requests, coordinate with owner and tenants to have work done, make payment to contractors.

• Answer questions and queries from owners and tenants.

• Monitor water bills and usage.

• File Rental Registration if applicable.

• Inspect after 90 days.

• Offer lease renewal with owners consent.

• Hang notices and file evictions.

• Coordinate access to the property for buyers, inspectors or contractors.

And remember, a property manager has to follow all Fair Housing requirements and be connected to a Real Estate Broker in the State of Ohio. So they keep everything legal, too.

Your current management company isn’t providing all those services?

Or, you’re looking for a little freedom and peace of mind?

We’d love to hear from you

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Southern Sky Realty, Property Manager
By: Vanessa Gilbert

Why should you hire a property manager? Articles from leaders we trust

we don't just manage property, we manage peace of mind
Southern Sky Realty

Top 10 Reasons you Need a Property Manager

By: Brenton Hayden/realatormag.org

This article explains the problems landlords can have and how hiring a property manager can alleviate the stress of owning income properties.  These are some of the reasons Southern Sky Realty was established, we wanted to make owning a rental property as easy as we could for our landlords.  Check out the article below for more details.

http://realtormag.realtor.org/commercial/feature/article/2015/09/top-10-reasons-you-need-property-manager

Property management
Southern Sky Realty, Property Management

 5 Benefits of Using a Property Management Company

By: Aime Fisher/Zillow.com

At Southern Sky Realty we use Zillow as a marketing tool for our rental properties and found this article informative for our clients and future clients.  Investing in real estate is a great way to save for your future but the hassle of being a landlord can be extremely time-consuming. Finding a great property management company could be just what you need to give you peace of mind. Check out these 5 benefits of using a property management company below.

Companyhttps://www.zillow.com/rental-manager/resources/5-benefits-property-managers/

 

 

 

Property Management in Akron: A look at Southern Sky Realty

"I've made West Akron my home for ten years now, and I love it here. I live in Highland Square with my twin daughters who attend Firestone High School and our cat, Lucinda. I also have a son and daughter who have fledged and are living out on their own. You'll see them, as well as my adorable three year old granddaughter Memphis, in some of our Instagram posts. We absolutely love our red brick street, our wonderful neighbors and our proximity to all that Highland Square has to offer.

I have lived in Ohio for 20 years, and Akron for 10 of those, and although it took a while, Akron really does feel like home now. The name, Southern Sky Realty, is my little homage to Australia, where I was born and raised, and where much of my family still lives.

Our company culture was inspired by my love for the houses and neighborhoods here in Akron, Canton, and Cleveland, and the people who buy, sell and rent them. Homes are such an interesting combination of heart and practicality. A huge investment, and the places we put down roots. I really wanted to create a real estate agency that sought to acknowledge and honor both aspects of ownership, for buyers and sellers, as well as for investors and their tenants.

Southern Sky Realty has a strong focus on Property Management, which we have a great deal of experience with, both myself, and our broker and co-owner, Baxter Widener. We work very closely with our owners and investment buyers as they get comfortable with entrusting us with their investments, and we use our expertise and experience as we place tenants and create relationships with them also. We now have owners in Florida, New York, Las Vegas, California, and Australia, among other places. These clients understand the value of real estate investing, and the wisdom of investing in Akron in particular. We believe strongly that investment properties, and our commitment to excellent property management improves Akron's neighborhoods, and therefore everyone's quality of life. Although Southern Sky Realty is a relatively new agency, it comes with years of experience behind it, and I think this, as well as our focus on creating relationships with integrity, is one of the factors that make us so successful.

When I am not working on or at Southern Sky Realty, I love to take Memphis to her favorite place, the Akron Zoo, and I practice yoga at our neighborhood studio, Yoga Squared. My partner Kirk and I can often be found enjoying delicious food (and wine or beer) at the Mustard Seed Market, or riding our bikes on the towpath. We don't just live in Akron, we really do love it."

By: Vanessa Gilbert