Turn Key Rentals

[John Hixon]

What is your opinion on companies who offer turn key rentals? They find the property, fix it up, place a tenant and manage it for you. Are these good investments or can you do better by doing all of this on your own?

[Dave Savage]

@John Hixon I think for the majority of people it is tough to beat a good turn-key operator - "good" being the key word here - and I agree with @Gautam Venkatesan in asking the BP community for advice about any particular companies you are looking for.

To actually purchase, maintain, and keep a property rented is a large undertaking for people, and potentially money losing especially those without experience and so going with a proven turn-key company can eliminate many of those headaches while still giving you better returns than the traditional mutual fund approach.

On the other hand, once you have a year or more of ownership under your belt of your own property you might be in a better position to evaluate turn key operators as you can understand what they have to do, and what fees are reasonable.