Our topic today is the myth of the turnkey property, and how it can affect your Fort Worth investment property. I hear this phrase constantly, especially from new investors. They will call and tell me that they are closing on their first investment property, and often they’ll tell me that it’s turnkey. So, they want to know how quickly they can get a renter in there.
“Turnkey” is Different for Rental Properties
When those investors call, I pull up their sales listing, and initially I see exactly what they see: a beautiful house in a desirable neighborhood with amazing amenities and the most gorgeous pictures you have ever seen. But my discerning Forth Worth property manager’s eye zeros in on other things. I usually see designer colors on every wall. There will be bamboo green in the kitchen and steel grey with a purple accent wall in the master bedroom. The kids bedrooms will be brightly colored with hand-painted murals on the walls. This is not my idea of turnkey. Sometimes there aren’t smoke detectors, which are required by the Texas Property Code. The exterior doors usually don’t have the keyless deadbolt that is also required by the Property Code. And when I see the koi pond or the water fountain or the above ground pool that the seller graciously left in the backyard, all I see are liabilities and lawsuits waiting to happen.
Consider the Renter’s Perspective When Investing
It’s exciting when you’re purchasing your first investment property, and sales agents have every right to get you excited. But at the end of the day, you have to put on your business spectacles and look at the property from the vantage point of a renter. Tenants are going to want nice neutral colors on every wall, and neutral flooring. They want to envision their own personal belongings in the property. Their favorite purple couch or red armchair won’t look the same against a bamboo green wall, so neutral is better. You don’t want a rental home to look like a Jackson Pollack painting.
How A Fort Worth Property Management Company Can Help
When you’re making your first purchase, get your property manager’s input early. Don’t rely only on your sales agent’s rental comps. A property manager will tell you what renters are looking for and how much you can expect to earn in rental income before you buy your investment property.
Contact us at Moxie Property Management, and we’ll give you our two cents, which will likely save you time and money when it comes to getting that property on the rental market.