Images by Plume Ploume and ar130405 from Pixabay
THE DANGERS of Turn‐Key Rental Property
By Kathy Fettke
More and more sellers are throwing out the
term “ turnkey rental property ” in hopes they can attract outofstate buyers . But what do they really mean by ‘ turnkey ’?
I heard a fellow podcaster state recently that all you have to do to provide turnkey property is buy a home , get it rented , put it under management and voila ! You can flip “ turnkey ” property at retail pricing to eager outofstate investors !
This is certainly not our definition of turnkey .
Unfortunately , turnkey means absolutely nothing anymore .
Uneducated buyers assume turnkey means that you don ’ t have to do a thing . The belief ( or false hope ) is that someone else does the buying , renovating , leasing and management of your rental property , and all you have to do is deposit rent checks .
Unfortunately , most of these misinformed investors end up writing checks and making few deposits . The problem is that most people trust what other people tell them . They believe the marketing message . For example , have you ever bought Fiji water ? The marketing is beautiful and makes you feel like you ’ re drinking right out of a waterfall on a tropical island . But the Cleveland Water Department ran tests comparing Fiji Water to Cleveland tap water and found arsenic , human feces and other contaminants in the Fiji Water .
False advertising is often used to market “ turnkey properties .”
At Real Wealth Network , we are constantly bombarded with companies who want to come speak at our events . Before they can do so , they must be thoroughly vetted to determine if their version of “ turnkey ” is the same as ours . I noticed one company was especially savvy at internet marketing . From the looks of their marketing , they appeared to have quite an impressive system in place , so I decided to pay a visit .
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