Turnkey properties, if properly prepared and arranged, are a good way to achieve financial security, providing the investor with regular, passive income.
Fully equipped premises, allowing for immediate living, without the need for additional furniture, immediately begin to function as assets. What should you pay attention to when investing in real estate with turnkey finishing and equipment?
Finishing standard and long-term perspective
Ready-to-move-in apartments are particularly popular in the premium real estate segment. This fact should not be surprising, as the quality of materials used to finish the property is of great importance. Although this involves higher costs in the initial stage, it is a better solution in the long term.
Fully equipped premises are perceived as easier and less time-consuming to manage. Even more so when the investor decides to use the services of a property manager who will take over all responsibilities related to renting and taking care of the property.
It is worth adding that the location of the investment is also important. This is one of the main things to pay attention to diversification of the real estate portfolio.
Investment flexibility
A fully equipped property intended for short-term rental should therefore also be adapted to the needs of long-term rental (e.g. due to a change in the investor’s strategy, market needs, change in economic conditions) without the expenditure of time, work and money. This will reduce the risk of long-term losses.
It is therefore necessary to equip the property with elements that facilitate everyday functioning, such as a kitchen and bathroom with household appliances (such as a fridge, washing machine, dishwasher) or wardrobes and additional furniture. Not only the quality is important, but also the versatility of finishing and equipment, which will increase the attractiveness of the property. and will allow you to generate permanent income.
The materials used and proper maintenance and modernization of the interior increase the attractiveness of the premises in the long run. This also translates into the amount of rent and influences the demand for the property.
With proper care, a turnkey property can start generating income in a short time and with little effort from the owner.
Summary
The shorter the rental period for a property, the sooner a new buyer can start getting a return on their investment. A fully equipped property allows you to rent it as quickly as possible, but the quality of finishing is of great importance here. Turnkey properties should be viewed as a long-term venture.
Finishing the property to a high standard gives investors peace of mind for years. The depreciation period of apartments is on average 12-15 years and it is during this period that the investment should fulfill its function without the need to carry out major renovations.
