Key Highlights

Foraying into property investment is not for the fainthearted or unprepared. A lot of the time, investors who are just starting their property journey can hit a lot of roadblocks and complications – especially if they’re going it alone. Sometimes, investors prefer a “hands-off” approach or they live in an area not relative to where they intend to invest, be it abroad or on the other side of the country.

This is where an investment property agency is needed.

What is a property investment agency?

Property investment agencies guide investors through their purchase and manning of a property, helping them to locate deals, finalise purchases, and even support them during the lettings side of property ownership. Essentially, without taking ownership of the property, purchase and manage the red rape for you. Property investment agencies are often chosen for those who lack the expertise and knowledge to do it alone or are living abroad and trying to invest remotely. A property investment agency can also be referred to as an investment property agency or property investment company.

What does an investment property agency do?

In practice, they can perform market research and locate ideal properties for investors. Once a potential opportunity has been identified, the agency will perform viewings and background checks before reporting back to the investor. Agencies often have great contacts and links with developers in the industry, giving them access to premium developments before they hit the market.

Once that’s all approved, they will assist with the purchase and any paperwork, ensuring things go smoothly. They will help to liaise with solicitors and mortgage brokers, helping to finalise the payment on the investor’s behalf. After the sale has been finalised, they can manage the lettings and tenancy side of the investment. They can secure and vet tenants, collect rent, and help with refurbishment and repairs.

If it is an off-plan property (i.e., a property that is still in either the planning or construction phase), they will remain in contact with the developers and give periodic updates to investors about the status of their investment.

Benefits of an investment property agency

With the basics out of the way, let’s look at why investors are clamouring to investment agencies to help maximise their potential.

Access to premium developments

A lot of property investment agencies will have strong relationships with property developers. They act as a broker for the developers, offering apartments directly from a building to investors, allowing them to get the first pick. This means that using an investment property agency will guarantee access to premium off-plan properties before everybody else – securing the best deals.

Discounts

Investment agencies will have fantastic connections, as they will have been in the industry for a long time and built up the necessary relationships. They have relationships with solicitors, mortgage brokers, and estate agents. Often, this allows them to secure discounts for you where it is possible. Developers also often offer properties below market rates for off-plan property, ensuring that investors can get a good deal on their new investment purchase. All of this is usually down to investment agencies being reliable and consistent customers who often have bulk buying power.

Hands-off approach

Not every investor can commit their time to their investments. Most investors already have full-time jobs, families, and other commitments that can prevent them from dedicating their time to the investment and lettings process. Some live overseas and are not physically able to oversee the purchase or manage the lettings side of the property. In some instances, investors just prefer to put the money in and see the returns.

Employing an investment agency allows for the finer details and grunt work to be managed by a third party, allowing investors to focus on what matters. They can view a property, perform checks, and ensure it is a sustainable investment property and that it will bring strong returns. After the research is out of the way, they can help to finalise the payment and orchestrate any paperwork and red tape that needs to be completed. After that, they can find tenants and manage the property’s entire lettings lifecycle until the investor chooses to sell the property and move on.

Market research and knowledge

Investment agencies will have a dedicated team who are experts in their field. Hiring one enables access to a wealth of insider information and knowledge. They perform market and location research and will know the best areas to invest in. They’re aware of current and predicted trends and can help you purchase the right property for you and your business goals.

This also means that they can help you avoid expensive mistakes, such as purchasing a property in an area with low tenant demand and low rental yields.

Property management

Most people aren’t DIY experts, which is why using an agency can be beneficial. They can look after your property for you, from surveying to orchestrating refurbs and more. Agencies keep a close eye on their properties and their tenants, performing background checks and bi-annual checks on properties to ensure tenants are respecting the property. Investment property agencies can also mandate repairs and replace furniture as and when needed.

Administrative help

Investing in a property comes with a lot of paperwork. It can be daunting and overwhelming, especially if this is your first investment. Your chosen agency can help you with the paperwork, providing advice guiding you through, and ensuring you don’t make any critical mistakes that could set the purchase back.

Drawbacks

Occasionally, things go wrong and not every property investment agency will be the best choice for you. There are a few things to keep in mind when choosing an agency:

• Hidden costs: Some agencies have a lot of hidden costs that can set investors back. To circumvent this, look for agencies that are dedicated to providing excellent service and are transparent in what they do every step of the way.
• It requires trust: Some investors may feel uncomfortable with delegating a lot of the responsibility and work to agencies. Investing via an agency requires a great deal of trust, so it’s important to find a company with strong values and a great record that you would be comfortable with investing your money in. Look for external reviews via Trustpilot, Google, and other websites before making a decision. Independent research before choosing a company is critical to ensuring a happy client relationship.
• Charges: Working with an agency is fantastic as it opens investors up to a lot of expertise and knowledge – this, of course, comes with a cost. There are tenant-finding fees and monthly charges you should be aware of before diving in head first. Great agencies will make you aware of exactly how much they cost and what you will be getting out of the service.

Summary

It’s easy to make mistakes in property investment – especially if you’re just starting. That’s why we recommend using a credible and competent property investment agency to get the most out of your investments. Here at North Property Group, we put people and their investments first. We’re a UK-based agency that offers an end-to-end service, from initial purchase to lettings, to resale.

We manage tenancies, payments, and documents, offering investors peace of mind and a hands-off approach. Not convinced? We currently have over 1,500 5-star reviews on Trustpilot – which just keeps growing. Book a free consultation with us today to start your Manchester property investment journey and tap into the UK’s off-plan opportunities.