Last Weekend I attended an all day event which included presentations by 4 different companies on their different turn key models. Every one of them was different . The first presentation was by a company that offered no property management , you were totally on your own. Their model involved putting tenants into the properties on a rent to own contract. The logic of their offer was that with the rent to own model the tenant practically managed the property them self and the amount of property management was minimal. This offer was interesting , but since the investment was out of state if there are any problems good luck.
The next presentation was by a company that would sell you the property and then refer you to his friend to do the management. This model has Merritt as long as his friend is reliable.
I am not going to go over all 4 presentation , you get the idea. I personally prefer the model we has at TCS Management. We find the properties , we do the rehab, we put a tenant in place and we do the management.
There are many benefits to the model but let me just give you the top 3
- We have completer control of the entire process, this gives us a a much better handle on the rental market so that when we buy properties we have a good idea of what properties make good rentals and how much rent we can get.
- We can use our rehab team to handle any maintenance. We have carpenters, plumbers, electricians, etc on our team. When a problem arise with one of our properties we do not have to use external vendors at high prices to do repairs and maintenance.
- When we do the rehab work we have a good idea of what the cost centers are so we can rehab the property with an eye towards minimizing maintenance.
If you have any comments feel free to add your opinion.