Maybe I am using the American term…Long-Term Turnkey Rentals…but basically turnkey rentals are ready made cash flowing rentals that are sold to investors.
We have sold our HMOs to doctors practicing medicine full time, that wanted to own income property in the least time-intensive way. They recognised that they would sacrifice some degree of return, compared with that of a full-time real estate pro who was sourcing his own deals. They were ok with that….Then we have had all sorts that think they can source…refurbish and even tenant from London or even China. They were not ready to give up on part of the pie. I recently came across two investors from China that got so screwed by a so called sourcer they were in total shock. They thought the next step would be to sue the sourcer and building contractor….also from long distance….Good luck….
I am fortunate to have local hard working JV partners. Otherwise it would not be possible. I am approach at least once a week from an investor who would like us to work with him and JV. As in a marriage it is very tough finding the right one that is honest…loyal etc…plus there are surprises…However the key to your investment success is finding the right people plus the right deals.
The idea of turnkey property stems from the promise to turn the landlord experience into more of a passive investment. This is particularly appealing to the time-starved, high-income professional. Not that I am promoting our deals….however I have seen too many deals go bad from so called sourcers that say..LEAVE IT WITH ME!!!….Know your numbers…on valuations…on refurbishment cost…know your rentals and know your demand for rentals. Property is a very tough business….Too many do not take the long view. We have had so many time wasters….people that want to buy 2 HMO properties only to back out at the last moment or simply disappear…..or those that approach our builders or even those who try to outbid us on property. If you want to succeed….treat people the way you would want to be treated….This is the long game of property.