Looking to make a solid investment that brings extra cash flow into your life? Who isn’t!
You know real estate has always been thought of as a safe bet for investing, but are you aware of the benefits of using it for an income source? Having a rental property can go a long way in securing the lifestyle choices you want, but many people don’t have the time or skills to maintain a rental property’s needs.
This is where turnkey properties come into play. A turnkey property is a real estate term that gets a lot of traction. But, what makes a property a turnkey?
A turnkey property is a term you’ll hear a lot in the real estate world. In the most basic terms, it is a property that has had up-to-date renovations and doesn’t require a ton of sweat equity or improvements before moving in.
These properties are ready for you to “turn the key” and move in! Traditionally, turnkey properties are rental units for long-term tenants, but that has changed over the last decade.
Turnkey real estate are still popular choices for people with busy careers, children at home, or those with enough income to purchase a home that has the renovation costs built in. They are also perfect for those people looking for a hands-off investment property. Turnkey homes make the ideal rental units because they are ready to live in and desirable.
Other investment properties are bought for the sole reason to be rented in the short-term vacation market. This growing sector is still steady, despite the challenges COVID-19 brought to the travel industry.
Rental properties are in every rural and urban area and vacation properties are often located in popular vacation spots or high traffic areas, like a condo by a sports arena. For this reason, the term ‘turnkey’ is how properties bought for the sole reason of temporary or vacation stays have been described.
Benefits of Owning A Vacation Rental
It doesn’t matter where it is in the country, people are going to have visitors and travelers needing a place to stay. In these days of social distancing, having the in-laws or your old college roommate crash at your house is likely a no-go. This is where the need for short-term vacation rentals comes in!
Having a turnkey rental property offers a need for a demanding market. It offers a secondary source of income because there will always be visitors who need a place to stay and many don’t feel comfortable in a traditional hotel. Offering the comfort of a home, with full kitchens, multiple windows, and unique locations is what drives vacation properties to be so popular.
Vacation properties are also more likely to accept pets than traditional hotels and this is a huge selling feature for clients.
Investing in real estate usually gives a good appreciation value. Investment properties, if rented, are also considered businesses. Bonuses like the benefits of tax write-offs and deductible home maintenance fees are something to consider when weighing the pros and cons of owning a turnkey property.
Are All Vacation Rentals VRBOs?
So, now that you’re considering including a turnkey property into your investment plans, you may be wondering how a rental becomes a VRBO. And, what exactly is a VRBO?
VRBO is a property booking company. It means “Vacation Rentals by Owner” and it allows travelers to book short-term housing directly from the owners or listed property management company.
Not all turnkey rentals are VRBOs, as discussed. Turnkeys can always be used for long-term tenants and quality rental housing is also a high need in many parts of the country.
But, if a short-stay vacation property is more your style, listing your property through the VRBO booking site, or competitors like Airbnb, is completely voluntary. There are creative ways to find clients and vacationers, but the ease of booking sites and the high-traffic viability they provide may be something to consider.
There are many conveniences with using the VRBO system, such as securing payment with taxes and customer relations help. Although, listing your turnkey real estate as a VRBO property will require service fees to be collected from clients and you won’t have control over how much the company charges.
Make A Turnkey Property Work For You
Buying a property that doesn’t require extensive renovations means it is available immediately to start generating income. Many investors hire a property management team to handle finding and maintaining long-term (leased or month-to-month tenants) or short-term vacation clients. This can equal a stress-free investment.
Earning reoccurring income, which is mostly passive, is a great reason to consider an investment property. Turnkeys may require less up-keep expenses because any major repairs would have been completed before purchase. They are ready to move in!
Owning property is a traditional way to secure assets, but vacant housing can be subject to vandalism, government tax, or unnoticed maintenance problems like a sudden leak. Having someone in your property helps guarantee its security.
Turnkey Rentals: Your Choice
Investing in real estate can be a great option for someone looking to diversify their money plans. Finding a property that requires no major renovation, has a pleasing interior, and is located in a desirable or high traffic area will bring many passive income options to your door.
There are benefits to being a long-term landlord as well as being the host to multiple travelers a month (or week)! Want to learn more about real estate, be sure to check out our other articles on this topic.
And, be sure to share these details on VRBO and turnkey properties!