Buying a Turnkey Airbnb Property: Pros, Cons, and What to Look For

A turnkey Airbnb property is a fully renovated and furnished home that's ready for immediate rental use—sometimes even with tenants already in place. For investors, it offers the ideal solution for a hands-off, low-stress investment. You can skip the hassle of managing repairs, renovations, or furnishing decisions. According to experts at AirDNA and Mashvisor, these properties are particularly appealing for those short on time or without the desire to take on renovation projects themselves.

Turnkey investments are especially suited for individuals who want nearly passive income streams while relying on property management services to handle the day-to-day tasks. In the following sections, we’ll explore the pros, cons, and key factors to look for when buying a turnkey Airbnb property to help you make an informed decision​.

What is a Turnkey Airbnb Property?

A turnkey Airbnb property is essentially a ready-made rental investment. It’s a property that has been recently renovated, furnished, and in many cases, already has tenants living in it. The idea is that once you purchase the property, it’s ready to start generating income immediately, with minimal effort on your part.

The turnkey process typically starts when a company buys a property in need of repairs. They handle all the renovations, furnish it, and often place tenants before offering it to investors. For those looking to dive into real estate without the hassle of managing renovations, tenant hunting, or furnishing, this is an attractive option.

Buying an existing Airbnb versus starting one from scratch saves you time and energy. You’re skipping the lengthy setup process and jumping straight into a cash-flowing investment. It's a great solution for investors who want a hands-off approach and immediate returns.

Pros of Buying a Turnkey Airbnb Property

Turnkey Airbnb properties offer a straightforward path to earning rental income without the hassle of renovations or tenant sourcing. With minimal effort required from the investor, these properties provide several appealing benefits, especially for those seeking a hands-off investment. Let’s explore the key pros that make turnkey Airbnb properties an attractive choice.

1. Immediate Income

One of the biggest perks of buying a turnkey Airbnb property is the instant cash flow. Since these homes are already renovated and often furnished, you can start generating rental income right away without the usual renovation delays.

2. Lower Vacancy Rates

Turnkey properties are typically move-in ready, and many even come with tenants already in place. This means less time searching for renters and more time enjoying the income. Lower vacancy rates translate to more consistent cash flow over time.

3. Nearly Passive Investment

If you're looking for a hands-off investment, turnkey properties are ideal. With property management services taking care of the day-to-day tasks, you can sit back and enjoy a more passive income stream while someone else manages your Airbnb.

4. Diversification Opportunities

Turnkey properties also make it easier to diversify your portfolio. You can invest in different locations and types of properties, which helps reduce risk and maximize potential returns.

5. Out-of-State Investing

Worried about managing a property far from home? Turnkey properties make out-of-state investing simpler. With the right management in place, you can own Airbnb properties in high-demand markets across the country without ever stepping foot in them.

Cons of Buying a Turnkey Airbnb Property

While turnkey Airbnb properties offer convenience, there are some drawbacks to consider. Let’s take a closer look at the potential cons of buying a turnkey Airbnb property.

1. Higher Upfront Costs

Turnkey properties come with a premium price tag. Since these homes are fully renovated, furnished, and often tenant-ready, you'll be paying significantly more upfront compared to a fixer-upper. While you’re saving time and effort, you’ll need to weigh that against the higher investment cost.

2. Dependence on Third Parties

When you buy a turnkey property, you're relying on the turnkey provider to handle renovations, management, and upkeep. While this is convenient, it also means giving up control over important decisions. If you prefer a hands-on approach, this might be a drawback, as you're putting your trust in others to maintain the property to your standards.

3. No Rent Guarantees

Even with a freshly renovated property, rental demand isn't always guaranteed. Market conditions can fluctuate, and tenant turnover might still occur. It's crucial to research local market demand before investing to ensure your property will stay rented and profitable long-term.

What to Look For When Buying a Turnkey Airbnb Property

When buying a turnkey Airbnb property, there are several important factors to keep in mind to ensure your investment is profitable and hassle-free. Let’s break down what to look for when purchasing a turnkey Airbnb.

1. Location

When buying a turnkey Airbnb, location is key. Look for areas with strong rental demand and potential for future growth. Vacation hotspots, urban centers, or up-and-coming neighborhoods are often ideal. A property in a popular area not only attracts guests but also increases your chances of long-term appreciation.

2. Renovation Quality

Don’t overlook the quality of renovations. A well-renovated property will save you headaches down the road, while a poorly done job could lead to expensive repairs. Make sure the property meets your standards by reviewing any work done and ensuring it’s up to code.

3. Reputable Turnkey Provider

Work with a turnkey provider known for both solid renovations and excellent property management. A reputable provider will have a proven track record and positive reviews, making your investment much more secure.

4. Financial Projections

Always evaluate the numbers before buying. Look at projected rental income, expenses, and your return on investment. Clear financials will help you ensure the property aligns with your investment goals.

Financing a Turnkey Airbnb Property

One of the most common ways to finance a turnkey Airbnb property is through a traditional mortgage. Conventional loans provide stability, with fixed interest rates and predictable monthly payments. If you have a solid credit score and enough savings for a down payment, this can be a straightforward option. Keep in mind that lenders will look closely at the property’s potential rental income, so choose a location with a strong rental market to boost your chances of approval.

For investors who might not qualify for conventional loans or want to move quickly, private lenders or cash purchases are great alternatives. Private lenders often have more flexible terms and faster approval processes, which can be especially helpful in competitive markets. If you’re fortunate enough to purchase with cash, you can avoid interest costs altogether, offering a huge financial advantage.

If you’re considering financing, there are a few things you can do to set yourself up for success. First, work on improving your credit score, as a higher score can help you secure better rates. Saving up for a larger down payment is also a smart move, as it can reduce your overall loan amount and monthly payments. Finally, don’t be afraid to shop around—different lenders offer different rates, and comparing options can save you money in the long run.

Managing Your Turnkey Airbnb Property

One of the biggest perks of owning a turnkey Airbnb property is the hands-off experience. Property management teams take care of everything from tenant screening to handling repairs and daily operations. This allows you to enjoy nearly passive income while professionals ensure that everything runs smoothly without you having to lift a finger. Companies like Awning even offer comprehensive property management services specifically designed to make managing your vacation rental as effortless as possible.

Even with a hands-off approach, keeping an open line of communication with your property management team is essential. Regular check-ins can help you stay updated on any issues, tenant concerns, or necessary property updates. It’s also a good way to ensure that your goals are being met and that you’re satisfied with their management.

While most of the heavy lifting is done by the property management team, you’ll still want to keep an eye on maintenance. Being proactive with repairs and upkeep ensures that your property remains in good condition and continues to attract guests, protecting your investment for the long term.

The Bottom Line

Buying a turnkey Airbnb property offers great advantages, like immediate rental income and a nearly hands-off approach to property management. It’s a fantastic option for those who want to skip the headaches of renovations and tenant sourcing. However, the higher upfront costs and reliance on third-party management can pose risks, especially if the property isn’t in a prime location or if the provider lacks a good reputation.

Before making the leap, it’s essential to thoroughly research the location, the reputation of the turnkey provider, and the market demand to ensure your investment will be profitable in the long run. With the right due diligence, a turnkey Airbnb property can be a smart addition to your investment portfolio.

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