For an aspiring real estate investor, managing a turnkey may seem easy. After all, isn't the point of these properties to rent them out right away?
Well, not so fast. Turnkey units may be in good condition initially, but there's no guarantee they will stay that way. Making a profit on a turnkey also requires you to find good tenants and get them to stick around.
Not sure if you should go in-house or third-party with your turnkey property management? Read on to learn about the key advantages of both approaches!
In-House Approach
The in-house approach involves managing a turnkey yourself or with the help of a small team. You'll assume all responsibilities that come with the unit.
The main advantage of in-house management is that you keep more of your rental income. Depending on how many real estate investments you have, this can significantly impact your ROI.
Another benefit of this approach is that you retain complete control of it. You select tenants, set rental rates, and so on. Tailoring your management style may help you make the most of your investment strategies.
Managing a turnkey property can foster a sense of connection with your tenants. By directly interacting with them, you build a rapport. This can play a key role when the time comes to renew the lease.
Finally, the DIY approach can help you develop a keen understanding of the real estate market. This takes time, but makes it easier to track rental property trends and identify key market opportunities.
Third-Party Approach
The third-party approach involves hiring property management services. They'll then create a hassle-free experience for both you and the tenants.
Hiring a property manager can save you a lot of time. Managing a turnkey unit is a significant commitment that involves many ongoing tasks. This can include anything from tenant placement to unit maintenance.
DIY management exposes owners to legal and financial risks. Even a single mistake in, say, handling an eviction can lead to fines and disputes. A third-party manager will help you protect your property investment.
The property management firm will also handle all tenant-related tasks. This includes collecting rent, addressing issues, and enforcing lease agreements. They won't let personal attachments affect their judgment.
Your property manager can take care of your maintenance tasks as well. Any maintenance issue will receive quick and high-quality attention. They may also have an online portal where tenants can submit requests.
Given all these benefits, it's easy to see how hiring a property manager can help you reduce stress levels. As long as you opt for a company with experience in the field, the process will be far more manageable.
Turnkey Property Management Made Easy
As you can see, both approaches have their pros and cons. If you can afford the expense, though, there's little reason not to hire professionals. The above guide will help you make the right decision!
Looking for turnkey property management services in Fort Walton Beach, FL? At All American Realty, we provide the high-level support you deserve! Start by getting a free rental analysis right now!
