Purchasing a Turnkey Property? Evaluate the Property Management First

by Jeff Pepperney, Real Property Management


uying turnkey properties can be a great way to build your rental

property manager will help you get the highest possible returns for your investment, year after year. The trouble with some turnkey properties is that they may not always come with reputable management. If the property has been neglected or left in disrepair, that could result in added expense for you as the new owner. There may be hidden damage or other problems that the current manager either doesn’t know about or is hiding. Also, poor management may have resulted in irresponsible or unqualified tenants who may not appreciate changes to the status quo. An inexperienced property manager is much more likely to violate lease terms or even local or federal laws in their dealings with tenants, creating an expensive legal mess for you. They may also allow problem tenants or necessary repairs to go unaddressed, leading to much larger and more expensive headaches down the road. These and other problems are all far too common to assume that it won’t happen to you. To avoid unwanted costs and lawsuits, it is important to first evaluate the current property management on any turnkey property you want to buy. A reputable property manager will be able to provide you with references, including past or current satisfied clients. You should

also ask others in your network if they have heard anything about the current property manager, and talk to their employees, if any. Do a thorough check on any licenses and certifications, taking note of any disciplinary action taken by state licensing boards. You can also visit one or more of their other properties, to get a sense of whether maintenance is being done and whether or not they lease only to conscientious tenants. If all of these check out, you may just have a turnkey property with a professional, experienced property manager on board. Once you find a turnkey property that meets all of your investment criteria, you can then let the experts at Real Property Management take over. We will work with the existing property manager for as smooth a transition as possible, ensuring that all necessary documents and information are collected in a timely manner. We will also work carefully with your tenants, providing them with the information and answers they need to feel comfortable about the coming changes. Each Real Property Management office is an expert in the local market and can help make your new turnkey rental property one of the best investment experiences you’ll ever have. Contact us today to learn more. •

property portfolio. Rental homes that are already leased upon purchase can help investors eliminate the process of getting the property ready for the rental market. But as you crunch the numbers on the purchase price, rental rates, and so on, don’t forget to carefully evaluate the property management situation first. If that turnkey property comes with an inexperienced property manager or has otherwise not been managed very well, that could spell trouble for you no matter how great the numbers look on paper. When considering whether or not to buy a turnkey rental property, it’s important to research the current property management. Quality property management is critical to long-term real estate investing success. A professional and experienced property manager, like those affiliated with Real Property Management, manages properties efficiently and with a high level of care. Good property managers will not only collect rent and find tenants for your property, but also ensure that regular maintenance and repairs are completed on time and correctly, that your rental rates are accurate, and provide recommendations on property improvements, just to name a few. In these and other ways, a professional


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