Once a thriving Lancashire mill town, Burnley was recently recognized by the UK Government as the “Most Enterprising Area in the UK”. It lies at the confluence of the Calder and Brun rivers, surrounded by picturesque Pennine countryside, and just 20 miles from Manchester. This former industrial town is one of the most affordable places to buy property in the UK, making it a lucrative place to start a real estate business.
In this article, discover everything you need to know about becoming a landlord in Burnley and turning your investment into a thriving business venture. It looks at everything from understanding the local property market to developing a business plan for managing multiple rental properties and the best place to list them to reach prospective renters.
Steps to Start a Real Estate Business in Burnley:
1. Understand the property market
Before launching a real estate business in Burnley, it’s important to conduct suitable research to understand the local property market. This might include finding out what the current vacancy rates are and browsing listings from your competitors, as well as understanding what other landlords are charging for their properties. Also, check to see what type of rental properties are the most highly sought after, whether that be apartments, terraced homes or detached properties.
2. Select your location(s) carefully
Understanding the Burnley real estate market also means checking to see which neighborhoods are among the most popular with renters. To appeal to students, consider purchasing an investment property near the University of Central Lancashire’s Burnley Campus or in the streets around Burnley College.
Among Burnley’s most popular areas to live are the charming village of Worsthorne with its quaint cottages and traditional pubs, and the picturesque rural area of Cliviger. On the edge of the town center is bustling Rose Hill, which boasts everything from contemporary apartments to Victorian terrace homes.
3. Develop a business plan
No matter what type of business venture you are starting, it’s important to do so with a solid business plan in place. This should clearly outline the goals of the real estate business and its financial projections, as well as how you plan on financing the purchase(s). A well-researched business plan also details the marketing strategy and the legal requirements you need to meet as a landlord.
4. Choose the right properties
Key to the success of any real estate business is the choice of properties. It’s important to think logically, rather than emotionally, and select properties that will be highly sought after and offer a good return on your investment.
Look for properties in Burnley neighborhoods that are in demand with renters and those that are a suitable size for the target market. It’s important that the property is in good condition or if it’s not, be willing to complete renovations before it goes to market. Many renters are now looking for properties with sustainability features, so consider this in your purchasing decisions.
5. Secure any necessary licenses and permits
When developing a business plan, clearly outline the licenses and permits that are required to run a real estate business in Burnley. Once you have secured a property, it’s essential that these are obtained before the listing goes online. These may include the following:
- Energy Performance Certificate (EPC)
- Gas Safety Certificate
- Electrical Safety Certificate
- Fire Safety Check
- Legionella Risk Assessment
6. Advertise your property
Once your property is ready to list, consider what kind of advertising will be the most effective. When people are searching for a house to rent in Burnley, most will head online and utilize a rental platform. Rentola boasts one of the largest collections of private property listings in the UK (62 300 available rentals), as well as being easy to use for landlords and renters alike. Simply create a listing description that tells prospective tenants what they can expect, then add high-quality images of the entire property. To really make a Rentola listing stand out, consider using SEO (search engine optimisation) techniques with regularly used keywords.
Set competitive rental rates
At the current time, the average price of a rental in Burnley is £650 per month for a two-bedroom property, which is around two-thirds the price of a rental in Manchester. This figure does vary, however, depending on the property type, with a one-bedroom place at just £530 and a four-bedroom detached home at around £950. When setting a rate for your rental property, it’s important to keep these figures in mind and be competitive to attract tenants. By browsing the listings at Rentola, you can see how other landlords are pricing similar properties.
Screen tenants carefully
Lastly, don’t overlook the importance of screening tenants before signing a lease agreement. Always perform a background check and ask for a reference letter to see how they have treated previous rental properties. For peace of mind regarding payment, ask for proof that they have a stable income to meet weekly, fortnightly, or monthly payments, and secure a bond to cover the costs of any damage to the property.
