Property Sourcing… The Do’s and Do Not’s of selecting a sourcing agent.
Naturally the number 1 priority when choosing a sourcing agent to help you find the perfect student investment property is their Market Knowledge. Make sure you’re asking the sourcing agent the right questions. ‘How is student demand this year’, ‘How does it compare to next year’, ‘is there a University Master Plan’, ‘Has the university build much on site accommodation in the last few years’, ‘does the University have any plans to create more on site accommodation in the next few years’, ‘What areas of the market are saturated?’, ‘What per of accommodation is preferred, should we booking at certain areas’.
Make sure your potential sourcing agent can talk the talk. The above questions should easily be answered by any investment manager within the city. Local knowledge is absolutely key.
WHATS IN IT FOR THEM?:
Most sourcing agents normally charge a fee, between 1-3% of the asking price. You have to remember that most sourcing agents have anterior motives, its not necessarily in their best interests to ensure the best return on investment, its in their best interests to get the property sold in order to send out an invoice and keep their KPI target. Make sure you question the ROI and what other investors are receiving.
Most Agents will have great contacts in sales (we certainly do), we often hear about properties before they’re on the open market. Make sure the sourcing agent understands your desires and wishes. Just because the budget is £500,000 does not mean that you want 5 properties right off the bat. Make sure the investment is right for you and remember, a budget is not a target. Get the sourcing agent to show you deals best value for money not closest to the budget
When purchasing a BTL student property investment its important that you have a plan in place once the property has completed. Who’s going to let the property, who’s going to manage the tenancy, who’s looking after it, are any works required to be undertaken. Now is the time to negotiate the aftercare fee. When looking for student investments make sure you’re asking the sourcing agent the fee charged to manage the property. Most sourcing agents will only provide a Gross rental figure or gross ROI. Make you’re you know the cots and get that important net ROI.
If you’re looking for a student investment property, we offer investment services priced at just 1% of asking. Our team can source the correct property for your needs, have excellent market knowledge and can help with the after care management. If you’d like more information on our property sourcing investment services please contact us on 01522 410 646 or email Harry@StudentHousingLincoln.co.uk