In 2025, more investors are leaning toward turnkey properties because they offer something rare in real estate: simplicity. Fully renovated, move-in ready, and often professionally managed. However, you may be new to the concept and wondering: What does ‘turnkey’ mean in real estate?
In this guide, we’ll break down exactly what turnkey means, how it compares to fixer-uppers, and whether it’s the right strategy for you.
What Is a Turnkey Property
A turnkey property is fully renovated and ready to rent out or sell. Investors often purchase them through companies that specialize in fixing up older buildings. Many of these providers partner with trusted Baltimore property management companies, making it easier for investors to keep their properties running smoothly. With turnkey real estate, you can step into ownership without as much heavy lifting.
Turnkey Real Estate vs Fixer-Upper: What’s the Difference?
Let’s make things easier — here’s a quick side-by-side table to help you compare the two options:
Aspect |
Turnkey Property |
Fixer-Upper Property |
| Condition | Fully renovated, move-in or rent-ready | Needs repairs, upgrades, or full renovation |
| Work Required | Minimal—should be ready from day one | Significant time, effort, and project management |
| Upfront Cost | Higher purchase price | Lower purchase price, but renovation costs add up |
| Cash Flow | Immediate rental income is possible | Income is delayed until work is complete |
| Risk | Lower—most issues already fixed | Higher — unexpected problems can arise during renovations |
| Best For | Passive investors, out-of-state buyers, hands-off landlords | Flippers, experienced investors, and buyers looking for a project |
Types of Turnkey Properties Investors Buy
The beauty of turnkey real estate is that it’s not limited to a single type of property. Almost any type of real estate can be a turnkey investment, as long as it’s fully renovated, move-in ready, and often already generating rental income. So, let’s break down some common examples investors often buy:
- Single-Family Turnkey Homes
If you’re just getting started with real estate investing, single-family turnkey homes can be a great way to go. They’re already fixed up, easier to manage, and can start bringing in rental income. And this all can happen without as much work on your end. - Multi-Family Turnkey Properties
Includes duplexes, triplexes, or small apartment buildings — fully renovated and rentable from day one. You can get rent from multiple tenants. Then, that means more cash coming in and less risk if one unit sits empty. It also can be a smart way to spread out your investment. - New-Build or Recently Constructed Homes
Built as turnkey units with modern finishes, updated features, and often covered by new-construction warranties. - Vacation or Short-Term Rental Properties
Some turnkey providers specialize in fully furnishing properties — complete with décor, linens, and property management setup. - Commercial Turnkey Investments
Less common but available — includes fully leased office spaces, retail units, or larger multifamily buildings that have been renovated and stabilized for immediate income.
The Pros and Cons of Turnkey Investing
Like other top real estate strategies, turnkey investing comes with both upsides and downsides. Right now, let’s take a quick look at the most common ones:
Pros
- Immediate Cash Flow: Since turnkey properties are fully renovated and move-in ready, you typically can start marketing them for rent right away. This eliminates the typical waiting period associated with property rehabilitation. Thanks to that, you can bypass construction or repair phases entirely. With fewer or no renovation delays, your rental income can begin flowing as soon as you secure a tenant. In other words, you can gain a quick return on your investment.
- Lower Renovation Risks: Since the turnkey provider has already completed major repairs and renovations, you are significantly less likely to encounter unexpected costs related to property improvements. This pre-finished state means you probably won’t face the common pitfalls of budget overruns or unforeseen structural issues that can plague traditional renovation projects. At least early on, your financial outlay can be more predictable.
- Less Time and Effort: Investing in a turnkey property means you likely don’t have to deal with the complexities of renovations, managing contractors, or enduring lengthy delays. The heavy lifting, from property acquisition to full rehabilitation, should already be already done for you. Needless to say, this gives you a more streamlined path to ownership. As such, turnkey properties an ideal choice for busy investors or those looking to invest in real estate from out of state.
- Great for First-Time Investors: Turnkey properties offer a simple, structured, and accessible entry point into the world of real estate investing. They are ideal for individuals who want to start building their portfolio without undertaking major renovation projects or learning the intricacies of property development. This simplified approach lets new investors gain experience and generate income more quickly–and with less initial stress.
Cons
- Higher Purchase Price: Turnkey properties often come with a higher upfront cost compared to properties that require renovation. This increased price reflects the premium you pay for the convenience of a fully renovated, ready-to-rent asset. Essentially, you’re paying for the value added through the completed renovations and the reduced effort on your part.
- Less Control Over Renovation Quality: Since you are purchasing a property where someone else has managed the renovations, you must place a significant amount of trust in their work’s quality. You don’t have direct oversight of the materials used or the construction processes. In turn, that means there’s a risk that they might have cut corners to maximize their profit. Then, your lack of personal involvement can lead to potential issues down the line if the contractors did not perform the renovations well enough.
- Limited Customization: When you buy a turnkey property, you are acquiring a finished product that is designed to be immediately habitable and rentable. Meaning, there is little to no room for adding your personal touch, making unique design choices, or implementing specific upgrades that you feel would increase its value. So, this can significantly restrict your ability to creatively enhance the property or tailor it to a specific market niche. After all, the property is already optimized for a broad rental appeal.
Ready to Explore Turnkey Investing?
Turnkey real estate remains a popular choice for investors in 2025, particularly those seeking a more hands-off approach. What’s more, since these properties are already renovated and rent-ready, it’s an easier way to get started with real estate investing. However, like any strategy, it’s important to weigh the pros and cons, understand your financial goals, do your due diligence, and work with trusted providers to make sure your investment is truly “turnkey.”
If you’re thinking about getting started with turnkey real estate, having the right property management partner can make all the difference. At Bay Property Management Group, we help investors manage their properties with confidence — from tenant placement to day-to-day operations. You focus on your goals — we’ll handle the day-to-day work that keeps things running smoothly. Contact us today to learn more.
