Turnkey Property

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DEFINITION of 'Turnkey Property '

A fully renovated home or apartment building that an investor can purchase and immediately rent out. Turnkey properties are typically purchased from companies that specialize in the restoration of older properties. Those same firms may also offer property management services to buyers, minimizing the amount of time and effort they have to put into the rental.

BREAKING DOWN 'Turnkey Property '

Turnkey properties grew in popularity following the housing market decline of 2007- 2008, when it became cheaper to buy homes than rent them in most parts of the United States.

This investment approach is especially appealing to individuals who desire exposure to the real estate market, but don’t have the time or ability/interest to renovate a home or handle maintenance issues. In most cases, the investor will hire a separate company to manage the property. For more information on owning rental property, see The Complete Guide To Becoming A Landlord and The Pros & Cons of Owning Rental Property.

The term “turnkey property” is not used solely by investors, however. In marketing literature, realty companies sometimes use the phrase to describe any renovated, move-in ready home that’s up for sale.