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What does "turnkey" mean in real estate and property investing?

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What does turnkey mean in real estate and property investing?

UK property is one of the most profitable and reliable investment markets in the world, but it can come with a lot of additional work for you if you are unprepared. Whether it is organising furniture deliveries, ensuring that your property has the appropriate safety certificates, conducting tenant viewings or anything else – there is a lot to consider when investing.

However, not all investments will require this level of work. Investors have options which will enable them to enjoy all the benefits of being a landlord with none of the hassle. Today, we take a look at “turnkey” investments, what that term means, what the advantages are and what you should look for when investing in turnkey property in the UK.

What is a turnkey property?

A turnkey property is a property that is ready for someone to move into immediately following construction without any extra work or time required. From the point of view of property investment, a turnkey property is one that can be rented out straight away and has everything in place to make that happen – from furniture to a lettings and management agent.

It is known as a “turnkey” property because all that is left for you to do upon completion is to put the key in the door, turn it, and nothing else is required to make it a liveable space.

Are turnkey properties purely for investors?

No, a turnkey property is for home buyers and investors alike as the overall principle applies to both types of buyers. While the term may be used more commonly in the world of investment – particularly for overseas investors who can benefit enormously from purchasing a turnkey property – it applies to every type of buyer equally, and many home buyers would find it advantageous to search for properties described in this way.

For example, while renovating or interior designing your own home is a dream for some, many are simply too busy to do this, or have no desire to in the first place. If you fall into this category, buying a turnkey property is the way forward – everything you need will be done for you and ready the second you move in.

What are the main things to look for in a turnkey property?

When looking to purchase a turnkey property, many of the same principles apply as for any property purchase. This is especially the case for anyone buying off-plan, before the development is completed.

By doing your research, you can reduce the risk and find a turnkey property from a reputable developer which will be of a high quality and delivered in good time. More often than not, buying off-plan means that you will also be able to purchase at a below-market rate and earn significant capital appreciation by the time you move in.

If you are an investor, you should look for a developer which offers a lettings and property management service post-completion. A property cannot be described as “turnkey” if you then have to do all the work of finding such an agency after you. Most reputable developers will be able to recommend an agent who will take care of every aspect of the lettings and management process for you, giving you all the benefits of being a landlord with none of the hassle.

Ronald Garrett, Managing Director at Alliance Investments, said: “Buying a ‘turnkey’ property is the best investment you can make as a landlord. It is the ultimate timesaving move which removes a huge amount of work and allows you to begin earning rental income immediately after completion.

“By appointing a reliable lettings and management agency such as Alliance City Living, you can magnify the benefit of buying a turnkey property and really make the most of your investment. At Alliance, we offer a comprehensive process from start to finish and beyond into the ongoing management of your property to ensure that this happens.”

This is the ideal time to invest in UK property – if you are looking for a turnkey property for sale in the UK, get in touch with our team today for more information.

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Mallam Grant
Ginny Wai 2
Conor Armstrong
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