Investing in Leeds Residential Property

Leeds is well known as a BTL Investor hotspot. Renowned for its booming business economy, thriving social scene, easy connectivity and huge population of young professionals, it’s a city full of opportunity when it comes to property investment.

Many Investors who originate from the South and South East of England are choosing to purchase property in Leeds as their money goes further and they can achieve higher rental yields that are almost impossible to be found in the South of England.

HOP’s fresh approach to Property Sourcing and Deal Packaging offers a turnkey solution to investors looking to grow or build a portfolio of buy-to-let residential property in Leeds.

Property Sourcing & Deal Packaging

We make investing in Leeds in breeze with our comprehensive Property Sourcing and Deal Packaging Service.

Designed to take all the stress out of investing in buy-to-let property, our turnkey service not only finds you the right property, but also manages the sales process, optimises the property and lets it out on your behalf. Leaving you to put your feet up while your investment is hard at work.

Enjoy a totally ‘hands-off’ experience, while we do all the legwork for you. Using our knowledge and market expertise, we’ll identify well-located properties that will attract good quality tenants, provide a low-risk long-term investment and have value added potential to deliver annual rental and capital growth.

 

The Property Sourcing Process

A step by step guide to how the sourcing process works when you are working with HOP.

Step 1: Consultation & Planning

During an in-depth consultation, we’ll chat through the different options we offer, what the anticipated outcomes would be, what is involved and how we operate.

Our goal is to really understand your needs: what is it that you want to achieve, how quickly you want to achieve it and the risk level you are comfortable at.

Once we are agreed, we then move to the next stage.

Step 2: Property Sourcing & Deal Packaging

You will have a dedicated contact who will be your personal expert, and will liaise with you on potential properties. They will undertake viewings on your behalf and report back – sending photos and videos for your review.

If we think it’s a suitable match, we’ll put together a Deal Analysis for the property, a handy overview sheet detailing the figures for investment, improvement and returns.

Once we’ve agreed on ‘the one’, our team will then seek to agree a optimal purchase price and close the deal.

Step 3: Purchasing Process

Once the offer is accepted, we’ll oversee the purchase progression step by step, liaising with the your appointed Conveyancers and Mortgage Broker as required.

We’ll book a survey to check for remedial works and then review the report with an aim to renegotiate the purchase price if required. If you have any questions throughout we are there to answer them.

The aim is to streamline the purchase process to reach completion in a timely and stress-free manner, before collecting the keys when the completion date arrives.

Step 4: Optimisation Analysis

This is where we really put our skills to work for you.

Our experienced team will arrange to visit the property, and undertake an indepth analysis of the property and identifying any cosmetic and remedial works required.

We’ll issue an Optimisation Report that includes a specific works lists, contractor estimates and a breakdown of the best ways to improve the property and prepare it for let, utilising materials and finishes carefully chosen to look great and last well.

Step 5: Refurbishment Works

Works will be scheduled in as soon as practically possible to minimise lost income. On completion, we’ll collect the keys, take meter readings and photos of the property. Our team of contractors will then undertake the scheduled works to the property under our watchful project management, ensuring it will appeal to tenants and be compliant.

We’ll quality check and handle final snagging, keeping you up-to-date with videos, photos and schedules.

As the project is nearing completion, the lettings team will be notified to prep the marketing.

Step 6: Property Marketing

As a sourced client, the property will automatically receive the Premium Marketing Package, complete with professionally edited photos, a full Matterport Virtual Tour and floorplans.

The Lettings Team will qualify all leads and book in viewings. Once we find you the right tenant, in-depth referencing confirms employment status, earnings, credit score, rental history and right to rent checks. After which, the Tenancy documents are signed and issued along with prescribed information.

You will be notified of the successful completion of the application and the move in date.

Step 7: Lettings & Property Management

You will be assigned a dedicated Property Manager, who will be your point of contact for everything relating to your property such as maintenance, inspections and tenancy renewals. Their aim is to ensure your property is well maintained and your income secure.

Annual rent reviews will take place, inspection reports provided and, when required, the property will be marketed well in advance to minimise void periods (often no more than a week and in Student HMO’s none at all).

Step 8: Strategic Planning

Often, the first property is just the start of the journey and at the end of the process, we find ourselves back together at the strategic planning stage, reviewing the outcomes achieved and looking at the next steps.

If might be that you choose to purchase another property, or multiples properties, all without having to leave home. You may decide to refinance, to release funds to purchase further properties.

Or after some time, it might be time to plan your exit, in which case we can also handle the sales process for you through our specialist HMO Sales Service, helping you to maximise the sale value of your property, or re-sell to a new investor.

Want to know more?

We’d love to have an informal chat about our process and how we could work in partnership with you to achieve your investment goals. If it feels like a good match, then we’ll arrange a more detailed meeting – either face to face or online – to go through your requirements in more detail.

Drop us a message with your details and a member of the team will be in touch to discuss further.

What is a turnkey service?

A turnkey service literally means “all you need to do is turn the key”– but in this instance, we even do that for you!

Many of our clients never even visit the property themselves, making it the perfect partnership for armchair or overseas investors who are happy to sit back while we put their investment to work.

In terms of the service HOP offers, it means we offer the total package. As well as finding you the right property and packaging the right deal, our team will take care of the progression, obtain estimates and project manage any works, prepare and let the property and then move the tenants in.

All without you ever having to leave your home.

Choosing the right kind of investment

We offer two types of BTL investment that leverage our expertise.

A lower risk “Let and Forget” option or an HMO let which may require additional investment up front.
These are then matched your individual investment strategy and the level of risk and return that is right for you.

Option 1: Lower Risk "Let and Forget"

2-3 Bedroom Family BTL

Typical Property Profile

2-3 Bedroom Buy to Let Family Home

  • Often semi-detached, mid terraced or back to back property
  • 2 to 3 storey (or 3 storey with basement)
  • Freehold houses
  • Standard construction, post 1900 to new build.
  • Garden, where possible
  • Double glazed and gas central heating
  • Generally in good state of condition
  • Prices from £85,000 to £180,000
  • Rent from £575 to £1000
  • Renting unfurnished or part furnished

Locations and demographics

  • Within a 15-20 minute drive of Leeds City Centre
  • Close to shops, amenities and transport links
  • In catchment area for good schools
  • Good rental demand from young professionals and families
  • Established rental markets or ‘up and coming’ areas
  • LS27, LS28, LS13, LS12, LS9, LS7, LS4, LS5, LS14

**where value add is sought for a doer-upper then double glazing, central heating and other items may be required, but this is all part of our service and easily installed.

Option 2: Higher Cashflow

3-7 Bed HMO properties

Typical Property Profile

There are two markets for HMO’s: single let joint tenancy properties and room by room HMO’s.

3 to 8 Bedroom HMO’s

  • Mid terrace, semi detached and back to back
  • Generally smaller gardens due to locations
  • Freehold houses
  • Standard construction, post 1900
  • Generally in a good condition, compliance (ready to go), HMO license in place on 5+ beds.
  • C4 history or status in areas covered by Article 4
  • Where development or refurbishment is sought, room sizes crucial, location, layout and potential assessed

Single Let, Joint Tenancies

  • LS2, LS3, LS4, LS5, LS6, LS7 – generally within vicinity of Leeds City Centre and Universities
  • Lower voids, no energy, council tax etc to cover, lower management costs
  • More accountability
  • Focus on ready made, pre-let properties or…
  • …Value add through refurbishment or extending basement, loft or footprint.
  • Higher entry point of circa £190,000 (3 bed) to £400,000
  • Covered by Article 4, limited to no new HMO’s

Room by Room

  • LS12, LS13, LS27, LS28, LS9, LS7, LS10, LS11
  • Generates higher returns that single occupancy tenancies
  • Gross rent less running costs of bills, higher management fees, higher voids compared to joint
  • Lower entry point if refurbishing, stock C3 house at £130-£160k end value of £250 to £300k depending on area, spec and rent
  • Some areas do not have C4, so no planning on Building control, can seek permission in other areas subject to planning.

Why use HOP for Property Sourcing?

Our clients come from near and far. As near as Leeds, as far as Harrogate, London, Australia, Hong Kong and even Singapore. Each client has a slightly different reason for choosing to engage HOP for property sourcing, but typically speaking it’s down to:

  • Being ‘cash rich, time poor’ due to busy careers in other industries
  • Having little knowledge of property or the local market in Leeds
  • Living some distance away, making viewing and securing properties difficult
  • Having ambitions to grow a portfolio quickly, without being too involved
  • Deciding to de-risking growth by engaging a professional rather than learn from mistakes
  • Wanting a hands-off investment, both in securing, and ongoing management

Getting started with HOP

If, after an initial chat, you are interested in proceeding with HOP, we’ll then set up a more formal consultation so we can really get to grips with what it is that you are looking to achieve with your investment and portfolio. We’ll go through the different options we offer, what the anticipated outcomes would be, what is involved and how we operate.

Our goal is to really understand your needs: what is it that you want to achieve, how quickly you want to achieve it and the risk level you are comfortable at. Once we are agreed, we then move to the next stage.

You will complete the required paperwork, we will complete our due diligence such as AML, proof of funding. Once this is all complete, the deposit is paid, which is 60% of the sourcing cost.

More often than not we may already have properties that meet the criteria but otherwise, we will utilise our market knowledge, contacts and database to identify the right opportunity for you.

Thinking of investing in Leeds?

If you want to grow your buy-to-let portfolio in Leeds, let us take the hassle out of finding your next investment.

Meet the Team

At HOP, we offer a uniquely holistic property service for our investors with three dedicated teams: Investments, Lettings & Sales.

Who is our Property Sourcing Service is for?

Our Property Sourcing service is designed to help you make the most of your investment strategy and take the hassle out of finding your next property. Whether you’re from out of town, just starting out, or a busy property professional who needs hands-on support, we can help. We’ll do the legwork, putting our network and knowledge to work to find the property that is right for you.

As an Investor, you may be looking to invest in residential property in Leeds, but do not live in Leeds. Without an up-to-date understanding of the local market it can be hard to know which areas to invest in, what size of property, and what standards you must provide to maximise your rental returns. We can be your eyes and ears on the ground and provide you with all the insight and local knowledge you need.

You may be starting out as a Landlord / Investor and need some guidance, or perhaps you are an experienced Investor, but too busy to property source for yourself. Either way, our local expertise can help you build a quality residential investment portfolio in Leeds.

We can source a range of properties depending on the investment strategy. If you are seeking a straightforward ready-made investment with minimum fuss, we can find opportunities that are pre-packaged and pre-let. Alternatively, we can source empty properties, or ones in need of refurbishment. Whatever your situation, HOP is on hand to provide a full 360 degree service from initial sourcing and sales, through to lettings and management and all the way through to HMO licencing and project managing of a refurbishment.

What does our Property Sourcing service include?

Our property sourcing service includes:

  • It all starts with a one-to-one consultation over the phone, video call, or face to face over a coffee, so that we can get to know you and understand your requirements.
  • We’ll then help you choose a property investment strategy, discussing criteria such as investment capital, gross yields, Return on Investment, risk profile, exit strategy and timescales.
  • We will ascertain the types of property you wish to invest in and create a clear understanding of the budget, area, size, tenant type, capital investment required
  • We will provide our local expertise in relation to the professional, student and HMO property rental market to match your investment criteria, reducing the chance of you making a poor investment choice.
  • On Instruction, you will be given have access to our trusted mortgage brokers, solicitors, surveying companies, accountants and Independent Financial Advisors.
  • During a 12-week sourcing period, we will provide you with up to a total of 8 investment opportunities matching your investment criteria, and provide you links to the potential investments.
  • We will undertake the viewings on your behalf, review properties that meet the criteria, and review the figures
  • We will undertake an indepth analysis and provide a Deal Package, which acts as an outline plan that includes refurbishment costs (where appropriate), HMO considerations and provide a breakdown of the deal, which in includes guides on expected rental returns, and net Return on Investment
  • If we agree that the property meets your requirements, we will negotiate the purchase price with the agent or seller on your behalf.
  • We will complete the sales progression, assisting with conveyancing reports and other aspects to minimise delays or issues.
  • On completion we will collect the keys on your behalf
  • Where properties are then being refurbished, we will project manage the works to completed, and handover to the Lettings Team.
  • Our full 360-degree property service will allow us to ensure your new investment maximises its potential. Our service can include project managing refurbishments, HMO licencing applications, listing the property for let.

Please note we can NOT provide Tax, Pension or Financial advice in relation to your property investments and strategy, however we can refer you to our trusted experts for each area.

'On' and 'Off' Market Opportunities

An ‘On-Market’ opportunity would be a property we have sourced that matches your investment criteria, and typically, the property is advertised on the open market, and listed on portals such as Rightmove.

HOP will be your local property expert, conducting viewings on your behalf with local agents across the whole of the market to identify properties which meet your investment criteria.

An ‘Off-Market’ market property deal relies on our network of current Landlords, Investors, developers and local agents. We can source a range of properties depending on the investment strategy, be it a professional rental, a HMO or student let. Some investment opportunities may be pre-let creating minimum fuss for you as an Investor.

Some opportunities, whether ‘On’ or ‘Off’ Market, may take further consideration, and there may be more risk attached. Careful consideration must be given to seasonal letting periods, Article 4, and cost of refurbishment. HOP will always provide honest advice as well as expert lettings advice.

Once we fully understand your property purchase criteria, our property sourcing service generally covers:

    • An ongoing, rigorous search for properties, both on and off the market, which match your investment criteria, providing you links to potential investments
    • We will, over a 12-week period, send you up to 8 potential investments
    • If you are happy with any of the opportunities we present, we will then arrange to view the property on your behalf
    • We will then feedback our thoughts, based on rental returns, furniture and any refurbishment costs required, and whether there are any risk factors to consider including building issues, rental or location issues or any article 4 and HMO regulations
    • Gain quotes for any necessary refurbishment or upgrade costs
    • Once you are happy, we can liaise with the vendor or selling agent to negotiate an offer to purchase, and advise on terms of the sale
    • We provide assistance and guidance during the sale progression where required
    • Key holding / collection service on completion
    • Start work to ensure the property is ready for either let/ or refurbishment

What about the financing?

It is important that our clients structure their investment property or portfolios correctly from the start. Therefore, for those who have not looked at how best to structure their investment vehicle, we work closely with Independent Wealth Specialists and Independent Financial Advisors.

Those who are buying with a mortgage can then liaise with our partner mortgage broker to attain a mortgage in principle so that when the right property is found, we can move quickly to secure it.

Contact our Property Sourcing Team

If you would like us to provide you our sourcing service, please contact our Leeds Team on 0113 322 9324.

Thinking of investing in Leeds?

If you want to grow your buy-to-let portfolio in Leeds, let us take the hassle out of finding your next investment.