After the housing market crash of 2007-2008, when homes were cheaper to buy than to rent in many parts of the country, turnkey homes became increasingly popular.
Nationally, buying is 30% cheaper than renting and even cheaper in many low-cost areas.
In a market like New York, where real estate is very expensive, investors try to create an income stream by buying rental properties in some areas where real estate is cheap and hiring property managers to manage the rents. This would help the investors to gain more profits.
This investment approach is particularly attractive to those investors or homebuyers who want to enter the real estate market but do not have the time, ability, or interest to repair or maintain their homes.
In most cases, investors hire private property management companies to manage their properties. When properties are purchased, they often have a tenant, which makes it easier for investors.
However, the term turnkey house is not only used by investors. In the marketing industry, real estate companies sometimes use this term to describe homes that have been renovated and are ready to move and are in the market for sale.
While some home buyers are attracted to home improvement ideas, those with busy lifestyles or who lack home improvement skills may choose a home that requires no repair.