Burnley - A Great Target Area for HMO Conversion on 28th Aug 2024Let's get straight to it shall we?Firstly what is a HMO?HMO stands for House in Multiple Occupation. Think of it like a shared house where multiple people who aren't part of the same family live together under one roof and share facilities like the bathroom and kitchen.This doesn’t mean you can just rent out your house to multiple tenants and call it a HMO! HMOs are regulated by law to ensure they're safe and comfortable for tenants. Here's what's typically required:Licensing: Landlords often need a specific HMO license from the local council. This is to make sure the property meets safety and health standards.Safety Measures: Proper fire safety protocols, including alarms and extinguishers, are mandatory. Gas safety checks and electrical inspections must be up-to-date.Living Conditions: There are specific rules about room sizes and the number of people who can live in an HMO. Properties need adequate kitchen and bathroom facilities to accommodate all tenants.Okay - so that’s what a HMO is - what’s the point of them? Is there really a need in Burnley? Well let’s look into it a bit deeper!There are definitely Pro’s and Con’s to HMO life for both tenants and landlords for instance -TenantsPros:1. Cost-Saving: Rent is usually cheaper compared to single-tenant apartments.2. Utility Sharing: Utilities like water, electricity, gas and internet are often included in the rent.3. Social Opportunities: Living with others can reduce loneliness and build friendships.4. Flexibility: Shorter lease terms might be available most are for 6 months.5. Furnished Options: Many HMO rooms come fully furnished!Cons:1. Lack of Privacy: Sharing common areas with multiple people can take a while to get used to.2. Noise Issues:Higher likelihood of noise disturbances, good communication with other tenants is needed.3. Limited Control: Less say in who your housemates are.4. Shared Facilities: Kitchens and bathrooms can be crowded and less clean, but there should be rules in place to keep this from being a problem.5. Security Concerns: Sharing facilities means trusting your housmates - each bedroom has a lock so tenants are advised to keep belongings in their own rooms!LandlordsPros:1. Higher Income:Renting out multiple rooms can provide a higher total rental income.2. Reduced Vacancy Risk:Less impact from one vacant room compared to a fully vacant property.3. Flexibility:Easier to adjust rental rates per room.4. Cash Flow:More regular income streams from multiple tenants.Cons:1. Management Complexity: More tenants mean more management and maintenance (don’t worry though, E&M Property Solutions have your back).2. Higher Wear and Tear: Increased usage of shared areas can lead to faster deterioration and higher maintenance costs.3. Regulatory Requirements: Stricter regulations and licensing requirements.4. Tenant Disputes: More potential for conflicts among tenants.5. Increased Insurance Costs: Often higher due to the nature of HMOs.There’s a wide range of HMOs, from high-end with luxurious amenities and ensuite bathrooms to more budget-friendly ones, so there’s usually something for everyone!So let’s take a looks at why Burnley is a Great Target Area for HMO Conversion:1. Affordable Property Prices: - Burnley offers lower property prices compared to other regions, making initial investments more manageable. - High return on investment due to the gap between purchase price and rental income. - Burnley has a great number of large terraced houses that have become run down and in need of renovations, these make the perfect property for HMO conversion due to their large rooms and often multiple living areas which can be converted to extra bedrooms.Why not take a look at some of the properties we have available for sale right now? https://eandmps.com/property-for-sale2. High Demand: - Students: Proximity to educational institutions, such as the University of Central Lancashire (UCLan), attracts student renters. - Young Professionals and Workers: Economic growth and development projects are drawing more professionals to the area, for instance - Burnley General teaching hospital brings in many commuters and overseas workers that use HMO accomodation. - Affordable Living: Burnley provides a lower cost of living compared to places like Manchester - appealing to those looking for budget-friendly accommodation within commuting distance.3. Economic Development: - Regeneration Projects: Significant investments in Burnley's infrastructure and amenities are enhancing the appeal of the town. - Business Growth: An increase in local businesses potentially increases the demand for rental properties from employees.4. Connectivity and Transport: - Excellent Transport Links: Well-connected through rail and road networks, facilitating easy commutes to nearby cities like Manchester and further afield! - Public Transport: Good local public transport options to navigate within and around Burnley.5. Rental Yields: - High Rental Yields: Compared to single-family rentals, HMOs in Burnley can offer higher yields. The shared accommodation model allows you to break down the property into multiple rooms, each generating rental income. Why not take a look at the rooms we have available to give yourself an idea - https://eandmps.com/property-to-rent6. Community and Lifestyle: - Rich Heritage: Burnley has a strong sense of community and rich cultural history. - Recreational Spaces: Access to our fabulous parks and outdoor activities enhances the living experience for residents. Who doesn’t enjoy exploring Towneley Hall, Gawthorpe Park and Pendle Hill to name a few of the local attractions.7. Supportive Local Government: - Council Support: Burnley Borough Council often supports landlords and property developers. The regeneration of properties is only a good thing for the local economy! - Resources for Landlords: Availability of resources and guidance for prospective HMO landlords is everywhere. There are a lot of rules to follow - but E&M Property Solutions can help you with that part!8. The Best Management : - E&M Property Solutions: We’ve saved the best till last! Of course! In Burnley you have the option of choosing E&M Property Solutions the leading HMO Specialist to help you navigate the whole process. From sourcing, assistance with plans and legislation, renovation and top tier management our team will help you through everything. Ensuring that the whole process runs as smoothly as possible, whether you want to be hands on or completely hands off, we are here to help!Let’s round everything up shall we, converting properties into HMOs in Burnley offers an attractive opportunity due to the combination of affordable property prices, high rental demand, economic growth, good transport links, and potentially high rental yields. These factors along with having the best leading Management Company - E&M Property Solutions at your side - make Burnley a prime target area for HMO conversions, appealing to various tenant demographics! Of course it’s always important to do your research, but we are here should you need us!
