Hopefully, you got into the Memphis rental market at the right time or still think this is the best time to do so. Good for you. You also decided that you don't want to be a hands-on landlord. That's a good idea also. It looks like "Memphis Turnkey Properties" is a good investment option based on those goals.
Memphis Turnkey Properties is a full service property investment and management company run by investors just like you. They understand the importance of keeping rental properties occupied by rent paying tenants that keep your cash flow coming in and your maintenance costs low. Currently they have more than 260 properties under management. Many of them owned by Memphis Turnkey Properties and many others owned by individual investors.
They believe there is a big advantage having a property management company that is invested in the same neighborhoods that clients invest in. Based on experience, they have found that upper Class B and lower Class A properties are the most profitable and the easiest to keep occupied with quality tenants (thereby keeping property management costs low). If you're not familiar with the "A", "B", "C" classification of properties, here's a short primer:
Class A properties - properties in the most desirable neighborhoods renting for above average rents. High quality finishing touches and amenities. Typically renting to tenants with credit scores above 700.
Class B properties - these properties can't compete with class A properties but do have a wide range of desirable tenants. Rents are average for the neighborhoods. Finishing touches are fair to good and appeal to many renters.
Class C properties - each property competes hard with similar properties for tenants that can pay the rent month in and month out. Rents and finishing touches are below average making them difficult to rent to quality tenants.
The simple reason Memphis Turnkey Properties prefers investing and managing upper class B and lower class A properties is because of the high quality tenants they are able to attract and keep. These are people with a career instead of a job that changes every couple of years. These are people looking to live in a specific neighborhood rather than in any neighborhood they can qualify for. Although these people are renting, they consider the house they are living in to be their home and they take care of it accordingly. They can take care of a small problem themselves, instead of calling the management company to change a light bulb or reset a circuit breaker.
Memphis Turnkey Properties is convinced that a profitable rental property is mostly about the tenants. It's difficult putting good people into bad homes. The business model is built around low turn over and high retention.
From the turnkey perspective, it's about doing high standard renovations. Whether it's replacing a roof or one of the mechanical systems, the job must be done correctly when you want to attract the best tenants. Right down to making sure all of the light switch covers match throughout the house.
It doesn't stop with the a clean and appealing interior. Memphis Turnkey Properties understands the importance of curbside appeal of properties for the tenants they want to attract. Attractive landscaping and attention to exterior detail are all part of the package. The core philosophy behind Memphis Turnkey Properties is they target better houses, in better areas, and attract better quality tenants.
Author bio: Brian Kline has been investing in real estate for more than 30 years and writing about real estate investing for seven years. He also draws upon 25 plus years of business experience including 12 years as a manager at Boeing Aircraft Company. Brian currently lives at Lake Cushman, Washington. A vacation destination, a few short miles from a national forest in the Olympic Mountains with the Pacific Ocean a couple of miles in the opposite direction.