Turn-Key is defined by Wiki as
"Turnkey refers to something that is ready for immediate use, generally used in the sale or supply of goods or services. The term is common in the construction industry, for instance, in which it refers to the bundling of materials and labor by sub-contractors. A "turnkey" job by a plumber would include the parts (toilets, tub, faucets, pipes, etc.) as well as the plumber's labor, without any contribution by the general contractors.
This is commonly used in motorsports to describe a car being sold with drivetrain (engine, transmission, etc.). A vehicle for sale without these pieces is sold "rolling". A racer may prefer to keep the drivetrain pieces to use in another vehicle to preserve a combination. Similarly, this term may be used to advertise the sale of an established business, including all the equipment necessary to run it, or by a B2B supplier providing complete packages for business start-up.
Specific usageThe term turnkey is also often used in the technology industry, most commonly to describe pre-built computer "packages" in which everything needed to perform a certain type of task (e.g. audio editing) is put together by the supplier and sold as a bundle. This often includes a computer with pre-installed software, various types of hardware, and accessories.
In The Wizard of Id, Spook's jailer is named Turnkey."
In real estate the term has two meanings; for rental property the term means to be ready to rent-ready or move-in ready. In investment real estate the term means a property that is already tenanted and fully functional as an investment property.
A turn-key property is one that is fully occupied with little or no maintenance required, generally with management in place. Often, local investors do not require the services of a property management company.
There is no dollar figure attached to the term turnkey only the fact that the property is leased, occupied and cash-flowing.
Cap Rates are often used to decide the income potential or value of a property. Please visit our Cap Rate description page understand the value of a cap rate.
We offer Turn-Key Property, Many of our current investors are interested in selling their investment portfolio. We can offer sales, leasing and property management for your turnkey investment.
Another use of the term turnkey is to say that a company offers turnkey services. Many contractors offer total turnkey services for rental property. Taking a vacant unit from vacant to cleaned, painted, and ready for occupancy.