Tag: lat_50.9025349

Investing in Property for Sale: How to Buy A Profitable Property for Airbnb in Southampton City Centre

Post author By Robyn Peña
Post date November 23, 2022

airbnb property for sale Southampton City Centre

Southampton is a modern city that has been a major seaport for the UK for centuries and is still known as the cruise ship capital of Europe. In comparison to other cities in the UK, Southampton is the cheapest place to invest in property in Hampshire. Southampton property prices are also well under the average house price in England. While there are best areas for rental arbitrage in Southampton such as Ocean Village and Shirley, it’s highly recommended to conduct research on profitable neighbourhoods before purchasing a property.

Fun fact: the cost of living in Southampton is 34% cheaper than in London!

When looking for a property for Airbnb in Southampton, you should not only look at its close proximity to major tourist areas but also determine its potential profitability. It’s also good to know that Airbnb rules in Southampton are not too strict. In this article, we’ll discuss the metrics in order to gauge the best property investment in Southampton, which is an important step when buying a property investment in the UK.

This includes the best website recommendations for property investment, each property’s gross rental yield, cash-on-cash return, and annual revenue, along with some of the most ideal and profitable properties according to their location.

Is Property Investment Profitable in Southampton City Centre?

Since the UK has the fastest-growing property markets across the globe, there is a wide variety of profitable property investments offering higher yields. Using a short-term rental calculator, it was discovered that a 3-bedroom apartment in Southampton City Centre can generate an annual revenue of £27,737 with a steady occupancy rate of 67% and a nightly rate of £117.

airbnb property for sale Southampton City Centre

Profitable Properties for Sale in Southampton City Centre

Finding the best properties that have the potential to produce high yields and capital growth are certainly some of the preferences of major investors. It’s always best to ask for assistance from real estate agents to access exclusive and unique properties during the development stage.

At the same time, it’s even better when a property investor like you conducts research about predicted growths and market forecasts. Check out the profitable properties in Southampton City Centre along with the calculated gross rental yield, cash-on-cash return, and annual revenue:

Disclaimer: The properties featured in this article are indicated as examples and there is a possibility that they have already been sold and removed from the website's listings.

Anglesea Road, Shirley, Southampton SO15

1. Studio-type Property for Sale Southampton
1 miles to Millbrook (Hants)

Asking Price: £60,000

GROSS RENTAL YIELD	27.66%
ANNUAL REVENUE	£16,598
CASH ON CASH RETURN	57.22%

Grosvenor Road, Southampton SO17

2. 1-Bedroom Property for Sale Southampton
0.5 miles to St Denys

Asking Price: £80,000

GROSS RENTAL YIELD	24.22%
ANNUAL REVENUE	£19,373
CASH ON CASH RETURN	46.88%

Waterloo Road, Freemantle, Southampton, Hampshire SO15

3. 2-Bedroom Property for Sale Southampton
0.4 miles to Southampton Central

Asking Price: £90,000

GROSS RENTAL YIELD	27.96%
ANNUAL REVENUE	£25,161
CASH ON CASH RETURN	58.10%

Westfield Chase, Aldbourne, Marlborough SN8

4. 3-Bedroom Property for Sale Southampton
6.5 miles to Hunger ford

Asking Price: £130,000

GROSS RENTAL YIELD	24.82%
ANNUAL REVENUE	£32,266
CASH ON CASH RETURN	48.69%

Cornwell Close, Gosport PO13

5. 4-Bedroom Property for Sale Southampton
0.3 Miles to Grange Junior School

Asking Price: £180,000

GROSS RENTAL YIELD	23.75%
ANNUAL REVENUE	£42,752
CASH ON CASH RETURN	45.49%

Conclusion

Since Airbnb is rapidly increasing and constantly changing for each city in the world, it is crucial to make decisions based on wild guesses. The data points mentioned in this article for Southampton such as Airbnb occupancy rates, annual revenue, and average daily rate should be the primary basis before investing in a property.

Hence, if the data presented above has given you ideas to boost your strategic pricing plan for your business, then an Airbnb rental arbitrage calculator is certainly what you need for success in the long run. It’s a fact that some of the STR investors are also considering Airbnb Rental Arbitrage, but they still need to have a reliable data tool on which to base their conclusions!

As we live in a digital era, an accurate data analytics tool can help your business stand out among your surrounding competitors and benchmark your property by tracking the occupancy rates of competing listings in your preferred city.

Tags Airbnb Investments, lat_50.9025349, lng-1.404189

Airbnb Rental Arbitrage All About Airbnb

Airbnb Rental Arbitrage in Southampton

Post author By Robyn Peña
Post date August 8, 2022

Are you interested in achieving financial independence through passive income? Here’s a disclaimer: you don’t need to own a property to start the Airbnb rental arbitrage business! In this article, we featured the entire process of Airbnb rental arbitrage in Southampton, its profitability, and the best areas and neighborhoods. Continue reading to learn more about short-term regulations and ways to convince landlords to sublet properties for rental arbitrage!

What is Rental Arbitrage?

Rental Arbitrage is a way to start an Airbnb business with no money. By convincing landlords to lease you a property, you can furnish and sublease it on Airbnb and VRBO. No need for you to buy a property!

It is perfectly legal and is a proven scalable business model. In my podcast, I have spoken to various entrepreneurs doing Airbnb arbitrage full-time.

Here’s a proof! In Southampton, Gaia manages 32 listings and I’m pretty sure she doesn’t own the all properties. She made £128,516 in the last 12 months.

How much can I make with rental arbitrage in Southampton?

Before you dive in and start putting out your hard-earned money on a property, it’s important to know how much profit you can make. For instance, the best neighborhood to invest in is Ocean Village, located in the SO14 district which has the highest yields (averaging 6.9%) in Southampton.

Since this neighborhood covers the city centre and is a hotspot for student rentals, Ocean Village has boosted rental demand and yields! Now that we have the best neighborhood to invest in Southampton, let’s talk about profitability and monthly expenses.

Profit & Monthly Expense in Southampton

Based on Airbtics’ data, you can earn a whopping £2,587 per month for a 2-bedroom apartment in Ocean Village alone. With the data provided, you can certainly tell that investing in a property in Southampton is profitable!

Average Rent Price	Airbnb Monthly Revenue	Monthly Expense	Monthly Profit
£1,019	£2,587	£517	£1,050

Source: Airbtics dashboard

The monthly profit can be calculated by subtracting the Airbnb monthly revenue, the rental price and monthly expense (£2,587-£1,019-£517 = £1,050).

Startup Cost in Southampton

Now that you have an overview of how much your monthly expense and revenue is, let’s talk about the start-up cost! How long does it take for an investor like you to get back the startup cost? Let’s take a look at this calculation:

Total Startup Cost (Average startup cost + 2 months rent price)	Cash Return Time
£4,039	4 months

The average estimated startup cost (for furnishing) in Southampton is around £2,000. To compute the total startup cost, it is necessary to add the 2 months of average rent price (£2,038). Now that we have a total startup cost of £4,039, cash return time can be calculated by dividing this by the monthly profit (£1,050).

Given your monthly revenue of £1,050, it will take approximately 4 months time to get back the startup cost! In such a short period of time, you can already expect profit and consider starting your second unit for rental arbitrage. If this sounds promising to you, then go ahead and look at the other best areas for rental arbitrage in Southampton!

Best Areas for Rental Arbitrage in Southampton

Before investing in a particular area in Southampton, you have to take a look at the top markets and number of listings to set your expectations for success. Check out the top 3 neighbouroods in Southampton ranked by their annual revenue, along with their occupancy & daily rates!

1. Ocean Village (SO14)

This area is a mixed-use marina, residential, business, and leisure development on the south coast of England that attracts numerous investors. Here’s what you can expect in this neighbourhood:

Type of Bedrooms	Average Rent Price (pcm)	Average Airbnb Revenue	Occupancy Rates	Average Daily Rate
1-bedroom	£731	£951	64%	£111
2-bedrooms	£1,020	£2,587	56%	£175
3-bedrooms	£1,253	£1,683	64%	£209

According to our Airbtics Dashboard, there are more than 48 Airbnb listings with 12 private room properties and 30 one-bedroom properties in this area. The monthly revenue for most properties in Ocean Village is more than £1,049 per month with occupancy being more than 66%.

2. Shirley (SO15)

Located near the northwest of the city centre, Shirley has its own high street along with a selection of schools and hospitals in Southampton. Here’s what you can expect in this neighbourhood:

Type of Bedrooms	Average Rent Price (pcm)	Average Airbnb Revenue	Occupancy Rates	Average Daily Rate
1-bedroom	£718	£1,712	73%	£94
2-bedrooms	£822	£1,670	64%	£136
3-bedrooms	£1,193	£2,715	58%	£172

This area has a total of 245 Airbnb listings with 109 private room properties and 164 one-bedroom properties. The monthly revenue for most properties in Shirley is more than £978 per month with occupancy being more than 52%.

3. City Centre (SO14)

Last but not least, Southampton’s City Centre is one of the best areas for professional lets because of its proximity to the tourists and business developments! Here’s what you can expect in this neighbourhood:

Type of Bedrooms	Average Rent Price (pcm)	Average Airbnb Revenue	Occupancy Rates	Average Daily Rate
1-bedroom	£731	£2,061	70%	£124
2-bedrooms	£989	£2,555	66%	£168
3-bedrooms	£1,122	£3,600	63%	£245

This area has a total of 20 Airbnb listings with 9 private room properties and 11 one-bedroom properties in this area. The monthly revenue for most properties in the City Centre is more than £1,658 per month with occupancy being more than 60%.

Short-term rental regulations in Southampton

To begin with, it’s certainly important to be familiar with the Airbnb rules in Southampton to make sure that your business will run smoothly. Here are some of the short-term rental regulations and laws to take note of:

If you are a landlord renting out a property the responsibility for paying the Council Tax bill depends on what sort of letting arrangement you have. Usually, the tenants pay the Council Tax but, in some cases, the owner or landlord will pay the Council Tax bill even though there are tenants living there.
The property is let on a multi-tenancy basis rather than a single tenancy
The rent agreed was in respect of a room (or part) of the property only
Tenants sharing a property don’t have a tenancy for the same period
The tenancy agreement states an individual rents each rather than a collective rent (where there is more than one occupant)

How to Find Landlords for Airbnb Rental Arbitrage

Airbnb investment through rental arbitrage is one of the best strategies to have passive income. However, it could be a challenge to find a landlord that allows their property for subletting on Airbnb. You can also convince a landlord by following the rental arbitrage email template & be extra creative!

Here are ways how you can find landlords that allow Airbnb rental arbitrage:

Real Estate Websites

Renters in the digital world who are looking for properties online can easily connect with landlords. Some of the most recommended online real estate websites which allow you to filter by city, state, or ZIP code are:

However, you can also find apartment & condominium properties online in the following websites:

Search Engines & Marketplaces

There are numerous property owners who are leasing their properties and you can easily find them on Google & online marketplaces. Check out some of the most recommended marketplaces:

Craigslist allows renters to specifically state what kind of property they are looking for. You can try typing in ‘landlords allowing Airbnb’ or ‘sublease property in (city name)’ and try other keywords to get you on the right track.
Facebook marketplace has a vast community of landlords & renters, so you can try joining the right groups to lead you on the right path. Here are some of the finest Facebook groups that you can join:

Communicate with Landlords

If you are currently renting a space or know someone who is, then it’s also recommended to speak with them. Start by asking if there are vacant rooms or properties and let them know about your intentions of putting them up for rental arbitrage. They might also be able to recommend neighbors or local friends who are also interested in this idea!

Tags Airbnb Rental Arbitrage, lat_50.9025349, lng_-1.404189

Airbnb Rules All About Airbnb

Airbnb Rules in Southampton

Post author By Robyn Peña
Post date July 29, 2022

If you are looking to buy investment properties in the UK, knowing the Airbnb rules in your preferred city is the first step! In this article, we featured Airbnb regulations in Southampton along with short-term let policies, buy to let properties, things to consider in property investment, and more. Continue reading and learn more about the Airbnb rules in Southampton!

Is Airbnb legal in Southampton?

Don’t worry, Airbnb is legal in Southampton! This modern and lively city possesses one of the largest & most frequented seaports in England. Southampton offers endless places where tourists can shop, eat and entertain themselves as well as many natural spots to relax after exploring the city’s intriguing history!

Here is a little proof! As of May 2022, there are 6,282 nights available in Southampton from Airbnb alone. Gaia manages 32 listings, Town or Country and Atanas operate 20 and 15 respectively.

How much can I make by running an Airbnb in Southampton?

Currently, there are 326 Airbnb listings in Southampton, with 42% of entire houses earning up to £2,501 a month. The Average Occupancy Rate in Southampton is 46% and the average daily rate is £130. According to vacation rental market data source Airbtics, a 2-bedroom apartment in Southampton can make up to £32,552 each year. Check out our Short-Term Rental Calculator!

Short-term rental policy in Southampton

If you are a landlord renting out a property the responsibility for paying the Council Tax bill depends on what sort of letting arrangement you have. Usually, the tenants pay the Council Tax but, in some cases, the owner or landlord will pay the Council Tax bill even though there are tenants living there.
The property is let on a multi-tenancy basis rather than a single tenancy.
The rent agreed was in respect of a room (or part) of the property only.
Tenants sharing a property don’t have a tenancy for the same period.
The tenancy agreement states an individual rent each rather than a collective rent (where there is more than one occupant).

Southampton Investment

Before investing in a property in Southampton, you have to consider the major determinators for success. This includes the average price, population, nearby landmarks or attractions, and rental yields to expect – among the rest. Here are some of the most recommended areas in Southampton that you can look into & consider purchasing:

Area	Population	Average House Price	Average Rent Price (pcm)	Average Airbnb Revenue	Yields
City Centre and Ocean Village	8,000	£292,410	£915	£2,630	An apartment bought at a good price might offer a 6% yield.
Northam	18,800	£201,886	£615	£1,131	Investors could expect around a 6% yield.
Shirley	14,425	£217,460	£650	£1,402	Shirley property offers a steady yield of around 4%.

Source: Property Investments in Southampton

Buy to Let Property Southampton

Having a buy-to-let property in Southampton is an ideal investment because it is one of the most important maritime cities in the country. This city contributes around £1 billion to the economy because of the numerous employment opportunities associated with Europe’s largest cruise ship terminal.

If you are looking to start an Airbnb business in the UK, particularly in Southampton, you have to consider which areas are the most profitable. Whether it is located in the city centre or in the port, knowing your estimated annual revenue and high-return investment opportunities is important. Using an accurate Airbnb calculator, it shouldn’t be a difficult task at all!