The Pros and Cons of Turnkey Properties

For Canadian investors, turnkey properties offer an enticing way to build rental income without the hassle of managing construction, staging, or lease-up logistics. These properties are renovated, furnished, move-in ready, and sometimes already leased, so especially in cities like Toronto, Vancouver, or Calgary, where carrying costs are steep and the margin for error is shrinking, the idea of buying a unit that is “ready to go” on day one is appealing. However, investors should be aware of the downsides, as well as the positives.

While the convenience and speed of turnkey properties can help investors scale quickly or invest remotely, this strategy does come with trade-offs, such as higher costs, less flexibility, and increased reliance on third parties. 

Benefits of Turnkey Investment Properties

There are some key advantages to investing in a property that is ready to rent.

Faster Income, Less Setup

The biggest draw of turnkey investing is immediate cash flow. With units that are already rent-ready or even leased, investors don’t lose time to renovations, permit delays, sourcing furnishings, or marketing lags. In tight or expensive markets, minimizing vacancy can have a significant impact on return.

Avoiding Renovation Risk

For those without the time or desire to manage trades, renovations, or supply chains, turnkey eliminates the learning curve and potential pitfalls of construction management. Investors, particularly first-timers or out-of-province buyers, often value the predictability that comes with purchasing a completed product rather than taking on an open-ended project.

Remote Investing Made Feasible

Turnkey models are especially attractive to investors who wish to buy investment properties outside of commuting distance. Buying a unit that is already functioning as a rental lowers the barrier to entry and reduces the need for boots-on-the-ground involvement.

Well-Positioned for Quality Tenants

Units that are professionally finished, staged, and in good condition tend to lease faster and appeal to more stable tenants. The polished look of a turnkey unit can justify stronger rents and reduce turnover.

Drawbacks of Turnkey Property Investments

Investors should be aware of the challenges and negatives of this investment strategy.

Premium Pricing Cuts into Returns

Turnkey properties typically come with a markup that reflects not just renovation costs, but also convenience. In competitive markets, this can mean paying above-market pricing for features you could have implemented yourself for less. Compressed margins and higher acquisition costs can limit upside potential.

Little to No Control Over Improvements

The renovations in turnkey properties are done to someone else’s standards. If the materials are of lower quality or the layout choices are impractical, you face the consequences of unhappy tenants and prematurely needing to renovate again. Without insight into the original scope of work, investors may inherit short-sighted fixes that cost more down the line.

Limited Value-Add Opportunity

Many investors generate returns through strategic renovations and repositioning. Turnkey units, by definition, leave little room for that kind of upside. If rents are already maxed out and expenses fixed, you are buying at the top end with no clear path to increased equity.

Dependence on the Seller’s Team

In many turnkey deals, the seller also supplies the property management, renovation team, and leasing services. While this bundled approach can be helpful, it also concentrates control and risk with a single party. 

Alternative Options: Convenience Without the Downsides

To gain the benefit of a turnkey property for investment, without the downsides, investors can instead look to buy a property more strategically without being limited by those that are rental-ready. They can then work with a full-service property management firm that can get the property ready quickly, often at a lower cost and with higher quality.

Partnering with a management company, like Marco Property Management, that offers furnishing services, including emergency or quick-turn setups, allows investors to bring a unit to market in days instead of weeks. 

Interior design consulting ensures that your design choices, pricing, and marketing align with what the local market actually demands. Instead of guessing at tenant expectations or rental rates, investors are guided by professionals who specialize in getting properties lease-ready quickly and profitably. Properties can be strategically styled by experts to attract the right tenant demographic. This reduces the concerns that many investors have about getting tenants placed as soon as possible.

Inspection and consulting services further streamline the process. Property inspections help flag issues pre-emptively, which a full-service property management company can then address promptly. 

Marco Property Management simplifies the rental process by offering a near-turnkey experience for investment property owners. Our furnishing services are fast and coordinated by experienced interior design consultants, ensuring each space is functional, cohesive, and market-ready without delay. We also oversee thorough property inspections and provide full tenant screening to ensure reliable occupancy. 

Additionally, around-the-clock maintenance and repair services ensure that any issues are addressed promptly and professionally, without requiring involvement from the property owner. This coordinated approach streamlines operations and minimizes friction, allowing investors to move from acquisition to steady income with minimal effort.