A turnkey rental is a residential property that is fully ready to use, equipped with HVAC, electrical, and plumbing systems, often with property management responsible for maintenance. Sometimes it can already have a tenant, making it a source of income from day one.
These are often considered an easy source of passive income, and in many ways this is true. A turnkey property saves time and gives you a low-stress way to invest in a high-value market.
Another benefit is the tax deduction that includes mortgage interest, property taxes, insurance, and operating expenses.
The drawbacks of this system are closely tied to its benefits. Because it’s already completed, there is slower property value growth (lower appreciation potential) compared to a non-renovated property that you can invest in and renovate yourself. It does not, however, stop property value growth completely, especially in buildings located in high-demand areas where property prices are expected to rise, such as the GTA. This makes turnkey rentals a great investment in the long run.
Another option is turnkey construction, where you buy a property from a developer before it is built. In this way, you have more flexibility at all stages, but it takes more time and requires careful due diligence.
The specifics of the Canadian rental market are often expressed in the Ontario post-2018 rule, which means that buildings occupied for the first time after November 15, 2018, are exempt from provincial rent increase caps. Not being subject to the official rent cap means that you can set the rent price according to the current market instead of the usual small increases (2.1% in 2026).
Overall, it is an easy, low-risk investment option, especially for long-distance investments. With minimal drawbacks related to ownership and maintenance, you get the benefits along with detailed reports from property management.
If you want to discuss turnkey rental deals in Canada, feel free to contact us in any convenient way.