Turnkey company taking long to complete renovations.

[Jonathan C.]

I am in the process of purchasing my first turnkey rental property in St. Louis from a turnkey provider. The contract stated that all renovations would be completed and a renter would be in place by Feb 28, 2022. At the end of February, the provider sent me a contract addendum moving the completion date to March 31. I have now received word that renovations won’t be ready until at least mid April.

My mortgage broker informed me that my mortgage rate lock is going to expire on March 14. To hold the rate, I will then have to pay about $13 a day. Depending upon how far the closing date gets pushed off, this could run me hundreds of dollars, if not more.

Is the turnkey provider in any way responsible to pay for my holding costs? After the March 31 contract expiration day, it is reasonable for me to ask him to pay my holding fees?

[David Avery]

Would you have paid the renovation contractors a bonus if they had property done before original date?

Should have had a clause in the contract about this.

Product in the past 16 months have been hard to find, and some has tripled in cost. 

I think the provider should have given you more notice and also yes they should absorb your $13 a day interest cost until complete.

A contract with a due date is pretty sound.

I think at this point it is easier for you to just deal with it since it is almost there.  Ask the provider if there is anything you could do to make it go quicker, namely try and find product or any vender that you could do such as cleaning, trying to get the appliance delivered quicker.,  Get the countertops delivered and installed quicker.

What stage is the project at?

maybe I can help with suggestions!