Home » Forum » Topics

Are turnkey rental companies actually worth it?

real estateinvestingpassive income
avatar
Elena_Sofia
Joined:
04.09.2022
Posts: 524
Topic Starter
11.01.2025 20:44
I've been looking into real estate investing lately and keep seeing ads for turnkey rental companies that promise fully renovated properties with tenants already in place. It sounds like the perfect passive income strategy, but I'm worried about the quality of the renovations and the actual vacancy rates. Has anyone here actually purchased a turnkey property, or are these mostly just overpriced traps for beginners? I'd love to hear some honest experiences, especially regarding the property management side of things.
19 replies in this topic
avatar
SivaMishka
Joined:
04.01.2021
Posts: 1245
23.01.2025 07:36
I bought one back in 2019. It was a decent experience, but the management company they hand you is usually the real bottleneck. Vet the PM, not just the house.
avatar
kris_1982
Joined:
05.02.2024
Posts: 1238
30.01.2025 03:56
In reply to a previous post
Exactly what I was thinking. Are the management fees usually higher than average for these companies?
avatar
seba_bg
Joined:
15.01.2021
Posts: 778
11.02.2025 21:11
Stay away. They usually buy the cheapest houses in bad neighborhoods, paint over the problems, and slap a 30% markup on the price. You're paying for convenience, but you're losing all your equity.
avatar
gost_nedelq
Joined:
24.12.2021
Posts: 75
29.03.2025 00:06
In reply to a previous post
I second this. It's much better to hire your own contractor and find a property yourself. You save so much money in the long run.
avatar
ChernaKotka
Joined:
09.05.2021
Posts: 1611
11.04.2025 18:16
It really depends on your goals. If you have zero time and want to park cash, it's fine. If you want actual cash flow, you'll be disappointed.
avatar
Martin_85
Joined:
24.06.2022
Posts: 2311
12.04.2025 11:20
I tried it once. The 'tenant in place' moved out two months after I closed. Turns out they were friends with the previous owner and were just there to make the property look occupied.
avatar
Sofiya_G
Joined:
10.12.2022
Posts: 1242
27.04.2025 03:48
In reply to a previous post
Wow, that is a nightmare scenario. Did the turnkey company offer any support when that happened?
avatar
Stefan_W
Joined:
23.02.2020
Posts: 1592
19.05.2025 01:33
In reply to a previous post
Nope, they basically told me 'not our problem' once the deed was recorded. Lesson learned the hard way.
avatar
vesko_55
Joined:
07.05.2025
Posts: 1185
10.06.2025 08:39
I think turnkey is a great way to start if you have no real estate experience, but you need to treat it as a learning expense rather than a goldmine.
avatar
tech_geek_bg
Joined:
05.08.2021
Posts: 1264
22.07.2025 07:13
Don't listen to the haters. I've bought three from a reputable company and my cash flow is consistent. You just have to do extreme due diligence on the location.
avatar
Fabi_W
Joined:
10.11.2022
Posts: 1317
01.08.2025 00:39
In reply to a previous post
Would you mind sharing which company you used? There are so many scams out there.
avatar
bai_ivan
Joined:
20.06.2021
Posts: 1409
22.08.2025 02:16
They aren't 'traps' per se, but they are definitely retail pricing for wholesale properties. You're paying a massive premium for the 'turnkey' label.
avatar
SamoPitam
Joined:
28.10.2022
Posts: 62
04.09.2025 04:28
The renovations are usually just 'lipstick on a pig' jobs. They look great in photos but have underlying foundation or plumbing issues.
avatar
Misho_B
Joined:
09.03.2025
Posts: 379
19.09.2025 14:41
In reply to a previous post
I've heard the same thing. Always get an independent inspection, never trust their 'in-house' inspector.
avatar
Sofiya_G
Joined:
20.07.2024
Posts: 969
05.10.2025 13:28
If you aren't going to look at the property in person, you're just gambling. Period.
avatar
star_vulk
Joined:
25.10.2021
Posts: 600
20.10.2025 09:16
I used one of these services for my first deal. It was overpriced, but it taught me the basics of being a landlord without the headache of a massive rehab project.
avatar
Oskar_Z
Joined:
29.07.2025
Posts: 1871
14.12.2025 16:07
In reply to a previous post
That's a good perspective. Maybe treat the first one as a tuition fee for real estate school?
avatar
seba_bg
Joined:
24.12.2022
Posts: 559
25.01.2026 08:18
Just remember that the property management company makes their money on repairs. If they manage the property, they have an incentive to keep finding things to 'fix'.
avatar
gost_nedelq
Joined:
04.09.2023
Posts: 2319
11.03.2026 18:04
In reply to a previous post
This is a great point that people often overlook. Definitely look for a PM that doesn't charge a markup on repairs.

Want to join the discussion?

Log in to your account to post a reply in this thread.