What is a ‘turnkey’ property? And why does it matter?

For property investors, the term “turnkey” is often used to describe a property that’s ready for immediate rental. However, there’s an important distinction to make: not all properties marketed as “turnkey” are truly move-in ready or equipped to generate rental income from day one. Understanding what makes a property truly “ready to rent” is crucial to avoiding unexpected costs and delays.

What Does "Turnkey" Really Mean?

The term “turnkey” suggests that a property is fully finished and requires no additional work before being rented out. In theory, you should be able to buy the property, open the door, and start earning income right away. Unfortunately, this is not always the case. Some developers may advertise properties as turnkey but fail to include all the necessary features or meet essential compliance standards.

This lack of clarity is where issues often arise for investors. A property may be “finished,” but without key elements in place, it might not be legally or practically ready for tenants. That’s why it’s important to understand the full scope of what needs to be included in a truly turnkey property.

What Makes a Property Truly Move-In Ready?

A truly move-in ready property goes beyond just being constructed. It includes all the essential elements that allow it to be rented out immediately, without any additional investment or work on your part. These are the features that make the property livable and compliant with rental laws.

Here’s what you should look for when evaluating a turnkey property:

1. Window Coverings in All Bedrooms and Living Areas

   
   

   A basic but essential element, many properties marketed as turnkey fail to include curtains or blinds. Without these, the property may not meet tenant privacy or comfort standards. Proper window coverings should be part of the package, without any additional cost to you.

2. Compliance with Health and Safety Standards

   
   

   Many new builds may not fully comply with the latest health and safety regulations, such as heating, insulation, and ventilation standards. A truly turnkey property should meet all relevant legal requirements for rental properties, ensuring it’s safe and comfortable for tenants.

3. Complete Wardrobes in Every Bedroom

   
   

   While some developers will include a space for wardrobes, it’s important to check that these are fully fitted with shelves or rails, as needed. A property that lacks functional wardrobes may not be suitable for tenants and could require additional work.

4. Essential Appliances Installed

   
   

   A property should come with the key appliances that tenants need to live comfortably. This includes an oven, stovetop, rangehood, and ideally a dishwasher. These appliances should be part of the property’s base package—not an additional cost.

5. Basic Outdoor and Infrastructure Features

   
   

   Small details like a letterbox, driveway, and clothesline can often be left out of the contract, even though they are vital for daily living. These basic features should be included, so tenants have access to everything they need.

Other Key Features for a Fully Functional Property

Beyond the basics, here are a few more things that make a property truly ready to rent:

• Landscaping: Things like boundary fencing, a patio, or a deck should be completed as specified in the plans.

• Bathroom Essentials: A proper bathroom should have towel rails, mirrors, a heater, and adequate ventilation.

• Electrical Fittings: Ensure that power outlets are properly placed, and that light fittings and other essential electrical features are included.

• Miscellaneous Items: These might include a garage door remote (if applicable), kitchen drawer inserts, and a laundry tub.

What Happens If These Items Are Missing?

If any of the essential features mentioned above are not included in the contract, you could face unexpected costs once the property is finished. These missing items can delay your ability to rent out the property or require additional investment to make the property tenant-ready.

That’s why it’s important to be clear about what you’re getting. A truly turnkey property should be fully equipped and compliant with all necessary standards from the start, so you can begin renting it out immediately—without additional costs or delays.

Why Does This Matter?

For investors, a property that’s truly ready to rent means less hassle, fewer unexpected costs, and a smoother path to profitability. By purchasing a property that includes all the essentials—such as appliances, window coverings, and compliance with safety standards—you’ll be able to start generating income right away. The key is to look beyond the term “turnkey” and ensure that the property is truly equipped for rental from day one.

In short, a “turnkey” property isn’t just about the property being finished—it’s about making sure that it’s legally and functionally ready for tenants. For investors, this distinction is crucial to avoid hidden costs and maximize the potential of their investment.