@Ryan Mullin Hi Ryan, nice article. We provide complete turnkey solutions through our property management and brokerage services. The only thing I disagree with in the article is using outsourced leasing agents. By having a third party dump a tenant in the property, you are essentially leaving the most important component to chance: a stable non-psychotic rent producing tenant! All humor aside, a qualified property manager will carefully screen a tenant as they have to deal with all the issues associated to property. What incentive is a wooden nickle bonus to go through the process of finding a tenant only to receive multiple weekend/holiday calls for a disruptive tenant? Or chase rent? I always think your property manager should be able to screen and place your tenant but perhaps we are different in this regard. If one of our placed tenants fails to see out the first 12 months we'll find another for no additional commission. Essentially, a tenant can stay for 11.9 months and if they bail, we'll get you a new ASAP for no additional compensation. It is to the benefit of the turnkey operator/property manager to have the property running at maximum efficiency for the long term to support the property management fees.
I have a highly specialized leasing team. This allows us to acquire nonperforming properties and lease them up with varied degrees of improvements, oftentimes with little or no renovation. Oftentimes, these properties just need to be given an intense marketing campaign to get as many qualified tenants as possible interested. If you wanted a turnkey situation with all the improvements and the property to come with all long term stable tenants, the cost of entry unto that investment vehicle would be fairly high, leaving little or no "meat on the bone" as they say. We're good locating nonperforming properties in the Fresno, CA area, purchasing and filling them with good, quiet and stable paying tenants. Our total delinquency rate is usually below 6 total tenants across commercial and residential with 200+ tenants. We have no current evictions scheduled and the 3% are typically 1 month or less behind for various non-eviction worthy reasons.
In turnkey, as with all our investment vehicles, the investors can be involved in the process as much as they like. I like investors to be involved in the leasing process. This is THEIR tenant, and I am intrusted in keeping that tenant safe and satisfied in return for timely rent. Investors, especially our new investors should be actively involved until we earn their trust and thus more business and hopefully, they will write a nice reference or review of my company or recommend us to future clients.
