What is a turnkey investment, and why is it your best bet?

Foreign property investors often stress the difficulty of managing a property, its time and dealing with bad tenants or surprise costs. 

They want an easy, reliable investment with transparent costs and good management. 

But what if there was a way to bypass all that stress?

That’s where turnkey investments come in. 

They offer ready-to-rent properties managed by experts, making it a simple, secure, and profitable choice.

Want to know more? Let’s dive in!

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.

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: 

1.Hassle-Free Management: 

When you invest in a turnkey property in Bali, you don’t have to worry about managing it yourself. 

The company you buy it from will care for everything, like finding tenants, collecting rent, and fixing any problems. This saves you a lot of time and effort.

2. Immediate Rental Income: 

Turnkey properties are usually already rented out when you buy them. This means you start earning money from rent right away. You don’t have to wait to find tenants.

3. Expert Knowledge: 

Local companies that manage turnkey properties know the Bali market well. 

They understand the best places to buy property, how much rent to charge, and how to keep the property in good condition. This expert knowledge helps make your investment successful.

What you should watch out for?

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. 

How do you 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. 

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.

For more ownership information, see Freehold Vs. Leasehold: Which Ownership Type Is Right For You?

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 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

Property prices in Bali can vary a lot. Villas can cost anywhere from $100,000 to over $1 million. 

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.

Source: Secure 15% ROI with this off-plan Ocean Breeze Project

4. Find a trustworthy real estate agent

A great real estate agent can be very helpful when buying property in Bali. 

Look for an agent with enough experience handling a foreign property investor like you, like Ilot Property Bali. 

With 12+ years of managing Bali’s property and witnessing the market performance, our knowledgeable team can support you in choosing your property, negotiating the price, and checking the property until the property is legally in your hands. 

5. Look at turnkey properties

A good turnkey property should have everything guests need to feel comfortable. Ask if anything has been fixed or improved recently. 

Here’s a fun tip: working with a property agent like Ilot Property Bali can make your search much more manageable! 

Our experts know all about Bali’s best properties. We can show you lots of options that fit your budget and preferences. 

Tell us about your dreams for your Bali home and how much you want to spend. We’ll help you find the perfect place!

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. 

That’s why working with a good property management company helps. They can handle bookings, clean the property, and take care of any problems that come up.

Steps to invest in a turnkey investment

1. Research and Select a Property

• Utilize recent market data to find a property that fits your needs and budget.
  
  For instance, in 2024, areas like Seminyak, Ubud, and Canggu in Bali have shown high rental yields due to increased tourist influx and development projects. Look for areas with growth potential and high occupancy rates. 

• Websites like Zillow, Trulia, and local real estate platforms in Bali can provide valuable data on property prices and trends. 
  
  Also, consider using property investment tools that offer insights into rental yields and market performance.

2. Contact a Reputable Management Company

• Reach out to well-established companies like Ilot Property Bali. They have extensive experience in the Bali real estate market and can offer properties ready for rental. 
  
  Their services include tenant placement, rent collection, and maintenance, ensuring a hassle-free investment.

• Check reviews, testimonials, and industry ratings. Ilot Property Bali, for example, is known for its transparency and reliability, making it a trustworthy partner for foreign investors.

3. Review and Understand the Contract

• Carefully read the contract provided by the management company. 
  
  Ensure you understand all terms, conditions, and costs involved. Look out for any hidden fees or clauses that could affect your investment.

• Consider consulting with a legal expert specializing in Bali property laws to help you navigate the contract and ensure it’s in your best interest.

4. Conduct Due Diligence on the Property

• Verify the condition of the property. 
  
  Arrange for a professional inspection to check for structural issues or maintenance needs. In Bali, factors like humidity and tropical weather can impact property conditions, so thorough checks are essential.

• Confirm all details the management company provides, including rental history, occupancy rates, and any ongoing expenses. Ensure that the property’s title and ownership documents are clear and legitimate.

5. Finalize the Purchase

• Work with your management company and a legal advisor to complete all necessary legal steps. This includes transferring ownership, registering the property, and ensuring compliance with local regulations for foreign ownership.
• Double-check that all documents are correctly filled out and properly filed. Any errors or omissions can cause significant issues later on.

6. Monitor Your Investment

• Even though the management company handles day-to-day operations, stay informed about your property’s performance. 
  
  Request regular financial reports and updates on occupancy rates and maintenance activities.

• Maintain communication with the management company. 
  
  Regular check-ins help ensure that your property is well-managed and allows you to address any issues promptly.

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.

Conclusion 

Imagine how much easier investing would be if you didn’t have to deal with property management and could just start earning money right away.

With a turnkey investment, that’s precisely what you get! 

It’s a hands-off way to own property without all the headaches.

By choosing a turnkey investment, you can own a paradise in Bali while experts handle everything.

It’s perfect for foreign investors who want a smooth and profitable experience.

Ready to start? Follow these steps and see how easy and rewarding property investment in Bali can be!