I think folks that get disappointed with turn key are under the illusion that its like buying a mutual fund or something like that.when in fact what is done for you is simply this.1. a rehabber ( turn key outfit ) has sourced and rehabbed ( we hope) a rental property and sold it to you 2. they may have put a tenant in it 3. and they may own the management company ( wise move for most turn key as they keep better contact with their clients and over time this becomes  nice profit center) Once you own it you have to be engaged and stay engaged as the owner if you don't your going to usually have disappointment.. and if you as the buyer think just because you bought turn key that you need to hardly do anything for the rest of the life of the investment well then your setting your expectations up for some disappointment.

We currently manage about 100 centers.

Tenant's General Responsibilities: Tenant, at Tenant's expense, must:pay any periodic, preventive, or additional extermination costs desired by Tenant, including treatment for bedbugs, unless otherwise required by law;"I would double check, but as long as you have been reasonably proactive to try and help with pest control, the tenant doesn't have the right to cancel the lease for pest issues. 

I am an investor and a broker so see both sides of it.Example:Someone wants to buy a small retail strip center with mom and pop tenants for 1,500,000.

you may need to inject treatment into the ground, too, if there are subterranean termites.  

I knew my target market was the University of Maryland Medical Center as I observed people in scrubs wandering their way to the block adjacent to the block where I bought.

The mom and pop tenant could be inline  for a shopping center versus stand alone single tenant building.

It is not a profit center, it is a convenience that helps our building be more competitive.  

Even if we started building now for what we don't know, we would not have enough roadway capacity to allow everyone to live in a SFR up to 2 hours (120 miles) from a city center.  

I've requested more info on the 10%, but that's my understanding.In terms of why, there are more extensive foundation repairs then initially estimated, termite treatments, and underestimating finish out in general are driving the incremental costs.