Ever heard the term “turnkey investment” and wondered what it really means? Many people are curious about this real estate strategy because it promises an easy, hands-off way to invest.
Instead of dealing with renovations, tenants, or daily management, a turnkey investment lets you buy a ready-to-rent property and start earning income right away.
But how does it actually work? And is it really as simple as it sounds?
In this guide, we’ll break down how a turnkey investment works in real estate. Let’s dive in!
Key Takeaways
- A turnkey investment refers to a property that’s ready for occupancy or rental as soon as you purchase it.
- All you need to do is buy a fully furnished villa and rent it out right away to start making a profit.
- To begin your turnkey investment, you should research the property, review the contract, conduct due diligence, and monitor your investment.
- For an easier process, you can hire a villa management agency to handle everything for you.
Free Download: Bali Property Investment Guide 2025
What is a Turnkey Investment?
A turnkey investment refers to a property ready for occupancy or rental as soon as you purchase it. This means the property has been fully renovated and furnished and is managed by a professional company.
The term “turnkey” implies that the investor can simply “turn the key” and generate rental income without making additional investments or improvements.
Read More: How to Figure ROI on Investment Property in Bali
History of Turnkey Investment Properties for Sale
Turnkey properties became popular after the 2007–2008 housing crash. Back then, in many parts of the U.S., buying a house was cheaper than renting.
In fact, buying was about 30% cheaper than renting. In big, expensive cities like New York, investors started buying houses in cheaper areas instead.
They would hire property managers to take care of the homes and collect rent, while the investors just sat back and received the profits.
How a Turnkey Investment Works
The idea is simple: you buy the house, and it’s ready to rent right away. Since no big repairs are needed, you can start collecting rent faster.
Common updates include fixing plumbing, replacing lights, painting walls, or repairing floors. The less work needed, the quicker you can rent it out and see a return on your money.
But, if you plan to sell the property instead of renting, spending too much on repairs might not always pay off. Buyers often want to change things to their own taste. So, money spent on upgrades could raise the price but might not increase buyer interest.
In that case, it’s often better to just make sure the home meets safety codes and leave the rest for the new owner.
Read More: How to Start Your Property Rental Business in Bali (+ Key Questions)
Steps to Invest in a Turnkey Rental Investment
1. Research and Select a Property
- Use recent market data to find a property that matches your budget and goals.
- Look for areas with high occupancy rates and future growth potential. For example, in 2024, hotspots like Seminyak, Ubud, and Canggu showed strong rental yields (thanks to tourism growth and new developments).
- Use platforms like Zillow, Trulia, or local Bali real estate sites for prices and trends. Property investment tools can also help you calculate yields and market performance.
2. Contact a Reputable Management Company
- Reach out to experienced companies, like Ilot Property Bali. We have extensive experience in the Bali real estate market and offer properties ready for rental.
- Check reviews, testimonials, and ratings before making an option. Ensure you choose a reliable real estate company.
3. Review and Understand the Contract
- Read every detail of the agreement provided by the management company.
- Watch out for hidden fees or clauses that might affect your returns.
- Consult a legal expert in Bali property law to ensure the contract protects your interests.
4. Conduct Due Diligence on the Property
- Verify the property’s condition with a professional inspection. Remember: Bali’s tropical climate can cause humidity-related issues—so thorough checks are key.
- Confirm details like rental history, occupancy rates, and running costs.
- Ensure the property has clear title and legitimate ownership documents.
Read More: Seven Tips to Safely & Legally Buy Bali Real Estate as a Foreigner
5. Finalize the Purchase
- Work with your management company and lawyer to complete all legal steps. This includes transferring ownership, registering the property, and complying with foreign ownership laws.
- Double-check that every document is correctly filled out and filed to avoid future problems.
6. Monitor Your Investment
- Request regular financial reports, occupancy updates, and maintenance records.
- Keep in touch with your management team—regular check-ins help you solve issues quickly.
By following these steps and leveraging recent market data, you can make a wise and profitable turnkey investment in Bali. It’s a great way to enjoy the benefits of owning property without the usual hassles and worries.
Example of Turnkey Investment in a Bali Villa
Are turnkey properties worth it? Yes, and one of our clients’ stories proves it.
Our client wanted to invest in Bali’s lucrative rental market but didn’t have time to manage renovations or deal with tenants. So, he chose a completely passive investment. Here’s what he did:
- He purchased a two-bedroom villa for $350,000 USD through our property agency, Bali Villa Realty by Ilot Property.
- Our team handled the entire process, including due diligence and legal paperwork. The villa came fully set up—from beds and linens to kitchen appliances and Wi-Fi installation—all included in the price.
- Once completed, our villa management team immediately listed the villa for rent. We took care of everything: marketing, guest communication, check-ins, cleaning, and maintenance.
Within just a month of completion, the villa was already generating rental income. Now, our client simply receives a monthly statement and direct deposit of his profits—completely hassle-free.
Benefits of a Turnkey Investment in Bali
With the easy process, it’s no wonder a turnkey investment is popular. But that’s not all. You can see some benefits listed below:
- Hassle-Free Management: The company takes care of tenants, rent, and maintenance, saving you time.
- Immediate Rental Income: Many turnkey villas already have tenants, so you earn rent from day one.
- Expert Knowledge: Local managers know Bali’s market, rental rates, and upkeep—making your investment smoother.
- Less Risk: Since the property is ready and tested in the market, you avoid the common risks of starting from scratch.
- Time-Saving: No need to deal with construction delays or renovations—you can focus on enjoying returns.
How to Find Your Perfect Turnkey Investment in Bali?
Whether you’re looking for a vacation home, a retirement spot, or a smart investment opportunity, these steps will help you find the perfect turnkey property while avoiding common pitfalls.
1. Research Bali’s Real Estate Market
Bali is a beautiful island in Indonesia that attracts many tourists. It has stunning beaches, lush rice fields, and ancient temples, which make it an excellent place for rental properties (apartment and villa).
However, foreigners can’t own land in Indonesia. Instead, they can lease property for a long time or use other ownership structures. Before you start looking for property, make sure you understand these rules.
2. Choose the Right Area
When investing in Bali, you’ll want to pick the right area. Popular places include Seminyak, Canggu, and Uluwatu. Each location has its own style.
Seminyak is known for being fancy, while Canggu is trendy with young people. Uluwatu is the surfer’s paradise with a beautiful Indian ocean view.
When looking at different areas, consider how close they are to beaches, restaurants, or popular tourist spots. Also, consider how easy it is to get there and if tourists like to stay in that area.
3. Set a Budget
Source: Bali Villa Realty
Property prices in Bali can vary a lot. Villas can cost anywhere from $100,000 to over $1 million. So, before you start looking, decide how much you can spend.
Remember to include extra money for taxes, repairs, and management fees in your budget. These costs can add up, so it’s smart to plan for them from the start.
4. Find a Trustworthy Real Estate Agent
Look for an agent who truly understands foreign investors—someone who’s been through it all and can guide you with ease.
A good agent understands the local market, property laws, and can guide you through the entire process with ease. They’ll also help you avoid scams, handle negotiations, and connect you with reliable legal and notary services.
At Ilot Property Bali, we’ve spent over 13 years helping clients navigate Bali’s property market.
Our team is here to support you every step of the way: from finding the right villa to negotiating the best deal and making sure everything is legally secure in your hands.
5. Look at Turnkey Properties
A good turnkey property should already be set up with everything guests need to feel comfortable—furniture, appliances, and basic amenities. It should also be well-maintained, so you don’t have to worry about costly repairs right after buying.
Always ask if the property has had any recent renovations or upgrades, such as new paint, plumbing, or electrical work.
This gives you peace of mind that the home is truly “move-in ready” and won’t surprise you with hidden problems later.
6. Understand the Rental Potential
To know if a property is a good investment, you must understand how much money you can make from renting it out. Ask for information about past rental income and how often the property was rented.
This will help you guess how much money you make. Also, think about who will manage the property when you’re away.
Things to Watch Out for When Investing in Turnkey Property
Though all the good things you have with this investment, there are some things you should watch out for:
1. Trust in Management Companies
It’s essential to choose a reliable company to manage your turnkey investment. They handle all the rental management, renovations, and other problems.
To ensure your property is in good hands, work with an agent with a proven record for over a decade, like Tertata Jelas Management (TJM).
With 20+ years of experience and a proven track record, they’ll ensure your property brings the most profits.
2. Costs and Fees
When you invest in a turnkey property, there can be extra costs and fees. That’s why you have to prepare for all the emergency costs.
At Ilot Property Bali, we provide clear information about all costs and future expenses to help you plan your budget and avoid surprises.
3. Market Research
Even though the property is managed for you, learning about the Bali real estate market is still a good idea.
Knowing how the market performs where your property is located is especially helpful. It helps you analyze the market potential, maximize results, and check the property value.
They give you an overview of changes affecting your property’s performance.
FAQ
1. What does 100% turnkey mean?
The meaning of turnkey is fully ready to use or move into without needing extra work. Everything—renovations, furnishings, and even utilities or services—has already been taken care of, giving buyers or renters a complete hassle-free package.
2. What are the disadvantages of a turnkey contract?
Turnkey projects need a very clear and detailed plan before they start. Because of this, they can be rigid; making it hard to adjust if changes or new requirements come up later in the process.
3. What is the difference between a turnkey and a contract?
In a turnkey agreement, the contractor takes on most of the risk, including unexpected costs or delays, which means less risk for the owner but usually a higher price.
In a traditional contract, the owner carries more of the risk, especially in coordinating between the designer and contractor.
Conclusion: Turnkey Property as Your Smart Investment Choice
Investing in a turnkey property in Bali is one of the easiest ways to own a villa and start earning income without the stress of managing everything yourself.
With a ready-to-rent home, expert management, and clear processes, you can enjoy the benefits of property investment while leaving the hard work to professionals.
Whether you’re looking for steady rental income, a holiday home, or long-term growth, turnkey investment gives you a smooth and secure path to making your Bali dream come true.
Wondering if a turnkey villa is right for you? Ask us anything, anytime.
