Whether you’re a newbie investor or a pro, a turn key rental property must sound pretty appealing. Once you realize there are affordable investment properties to be had and that they’re fully managed by a third party - which should reduce the typical headaches associated with direct ownership - and they provide a steady stream of cash flow to the owner, turn key rental sounds like a dream come true.

But not so fast… Like any investment, this dream come true could become a nightmare if you don’t take steps to evaluate the situation thoroughly. Here’s why turn key rentals will (and should) make you question everything.

• Question the market: Investing in a turn key rental should start with a thorough survey of the local market and the turn key rental resources and property management companies available read more about this in our Turnkey Properties article.
• Question yourself. It’s not one size fits all, and turn key rental properties are not for everyone. Based on your investment goals and personal capabilities, you may decide that you want to be - or should be - a hands-on investor, not hands-off. We’ll walk you through the pros and cons of both options in our article, Making it Happen - Hands on or Off
• Question authority: If you’ve decided a turn key rental is the way to go for you, and you’ve identified a local partner to source and manage your property, your next step is to interview them thoroughly.

Question the turn key rental property resource: Take time to interview your turn key rental provider, and approach it like a discussion about their business approach and history. Be prepared to take some notes so you can create a profile using their answers to questions like these:

• How long have you been in business?
• How did you start out selling turnkey real estate, and do you own yourself?
• How many properties do you turn a month?
• Who does the renovation - your own crew or do you contract out?
• Do you offer any warranty on the renovation work?
• What permits did you get and/or city inspections?
• Click here to find our free Due Diligence checklist and print it out to use as a guide
  to more questions you can ask to complete a thorough profile

Question the property manager: Your choice of property managers can be a make or break choice as it relates to the long term success of your turn key rental investment. So, in the same way, take time to get to know them. Here are some key questions to ask:

• How long has your company been in business?
• Who are the owners of the company, and are the owners involved in day-to-day operations?
• How many properties does the company manage now, and is that more or fewer properties than in the past (in other words, is your business growing or declining?)
• What’s your tenant screening process?
• Who does property maintenance - staff or contractors?
• How much do you charge for leasing and management fees?
• What software do you use to provide updates and statements?
• Click here to find our free Due Diligence checklist and print it out to use as a guide to more questions you should ask your turn key rental property management company

Don’t forget to ask about the prospective tenants of your turn key rental:

• Get a copy of the lease
• Find out the number of occupants
• Ask if they’ve ever been behind or late in rental payments
• Ask about what was included in the screening process
• Find out how much was provided as a security deposit

Finally, question Google: That’s right, do an online search and look for a Yelp rating and call the Better Business Bureau (or search the BBB site) for negative feedback.

I’ve compiled nearly 7 whole pages of questions on my list of critical due diligence knowledge. Click here to download your free Due Diligence checklist and print it out to use as a guide to the questions you should ask your turn key rental resource and property management company. Armed with the facts, you’ll be in a better position to invest with confidence, and to realize a return on your investment. Get ready to question everything, and you may find the purchase of a turn key rental is indeed the right choice for you.