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airbnb property for sale Birmingham City Centre

Are you looking to invest in a property where you can maximize profitability in a particular region? If yes, then it’s certainly a must to consider the major things to look out for when buying a property for Airbnb. While rental arbitrage in the UK is fairly popular and does not require you to purchase a property, it’s still the best to learn about buying a property for Airbnb and making sure that it’s profitable.

Aside from a property’s fascinating architectural design, proximity to major tourist areas, and accessibility to the best go-to places, the primary step is to determine profitability. It’s also good to know that Airbnb rules in Birmingham are not too strict, as they only prohibit short-term rentals less than 30 days. In this article, we’ll discuss the metrics in order to gauge the best property investment, specifically when buying a property investment in the UK.

This includes the best website recommendations for property investment, defining property gross rental yield, cash-on-cash return, and monthly revenue, along with some of the most ideal and profitable properties according to their location. Stoked to learn more about starting an Airbnb business in the UK? Continue reading to learn more!

Is Property Investment Profitable in Birmingham 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 an Airbnb calculator, it was discovered that a 3-bedroom apartment in Birmingham City Centre can generate an annual revenue of £38,002 with a steady occupancy rate of 66% and a nightly rate of £172.

airbnb property for sale Birmingham City Centre

Profitable Properties for Sale in Birmingham 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. Here are some of the profitable properties in Birmingham 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.

Great Horton Road, Great Horton, Bradford BD7

1. Studio-type Property for Sale Birmingham
0.8 Miles to Loughborough

Asking Price: £39,000

GROSS RENTAL YIELD	24.78%
ANNUAL REVENUE	£9,665
CASH ON CASH RETURN	48.58%

Manor House Close, Birmingham B29

2. 1-Bedroom Property for Sale Birmingham
1.9 miles to University (Birmingham)

Asking Price: £60,000

GROSS RENTAL YIELD	26.01%
ANNUAL REVENUE	£15,607
CASH ON CASH RETURN	52.27%

Summerton Road, Oldbury B69

3. 2-Bedroom Property for Sale Birmingham
0.8 miles to Sandwell & Dudley

Asking Price: £85,000

GROSS RENTAL YIELD	24.74%
ANNUAL REVENUE	£21,033
CASH ON CASH RETURN	48.47%

Telford Gardens, Wolverhampton WV3

4. 3-Bedroom Property for Sale Bermingham
2.4 miles to Wolverhampton

Asking Price: £85,000

GROSS RENTAL YIELD	25.44%
ANNUAL REVENUE	£21,620
CASH ON CASH RETURN	50.54%

14 Jenner Drive, Evesham WR11

5. 4-Bedroom Property for Sale Bermingham
0.8 miles to Evesham

Asking Price: £136,000

GROSS RENTAL YIELD	24.97%
ANNUAL REVENUE	£33,954
CASH ON CASH RETURN	49.13%

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 Birmingham 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 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.

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Is Airbnb legal in Birmingham?

Don’t worry, Airbnb is legal in Birmingham! Birmingham is the largest city of the West Midlands conurbation—one of England’s principal industrial and commercial areas—for which it acts as an administrative, recreational, and cultural centre.

Currently, there are 1672 Airbnb listings in Birmingham, with 38% of entire houses earning up to £1,728 a month, 59% managed by professionals, and 41% managed independently. Apart from complete houses, Birmingham’s Airbnb offerings include 33% of private rooms and 28% of apartments(condos). Average Occupancy Rates in Birmingham is 40% and average daily rate is £102. According to vacation rental market data source Airbtics, a 2-bedroom apartment in Birmingham can make up to £23,760 each year.

Short-term rentals policy in Birmingham

– prohibits short-term rentals less than 30 days

– prohibits short-term rentals less than 90 days in low-density residential areas

Short-term rental policy in the UK

– The letting must NOT be for longer than 31 continuous days. A period of longer than 31 days is deemed to be a ‘long’ stay.

– The let property needs to be made available for rent for at least 210 days in a tax year.

– The rental needs to be actually let for at least 105 days of that tax year, for periods shorter than 31 days at a time.

Pros and Cons of running Airbnb

Short-term rentals are vacation rental properties rented out on a short-term basis to guests, like hotels. This form of rental helps guests to feel more at ease and “at home” because the properties are typically designed in this manner.

A long-term rental is the most common sort of rental property utilized for residential purposes. This sort of rental property is usually protected by a long-term lease agreement with more binding terms than a short-term rental. Renting out their homes for a higher price than their mortgage allows them to generate regular income regardless of the market. Because it is more traditional and well-known, most people are more familiar with this sort of rental property.

Now that we’ve defined vacation rentals and long-term rental properties, let’s look at each component of rental properties that explains both the benefits and drawbacks of a short-term or long-term rental.

Pros

1. Flexibility – You have the option of renting for days, weeks, or months. You can rent as much or as little as you want. There’s also the possibility of going on a trip at any time and earning money while doing so!

2. Privacy – Short-Term Rentals are ideal for families. They provide guests with more privacy and space than standard hotels.

3. Earns more money than a long-term rental – It’s simple to calculate: £1500 for a vacation week vs. £1500 per month to rent for a year.

4. Good Deductions – There are numerous popular deductions available to rental property owners. Cleaning and maintenance, insurance, management fees, and utilities are just a few of the costs to consider. You may make a loss and avoid paying taxes entirely if you take enough deductions.

5. Tax Breaks – Short-Term Rental Owners receive the best home-related tax breaks.

6. Less Wear and Tear on the Property – With frequent renters, you can keep up with tiny repairs before they become major issues!

7. Social Advantages – There are a lot of interesting people in the world, and many of them travel! Your next acquaintances in a Short-Term Rental could evolve into lifelong buddies!

Cons

1. Inconsistent payments – If you rely on a stable income, a yearly renter is a much safer option. There’s a chance you won’t have a Short-Term Renter for weeks or months.

2. Must cover the utilities – Utility costs are usually paid by long-term renters. Short-term tenants don’t.

3. Increased risk – There is a higher danger of theft, breakage, or problem tenants because of the number of tourists going through your doors.

4. Requires extra effort – Running a Short Term Rental requires more effort because you are the innkeeper. You’ll be in charge of collecting money, scheduling clients, and bringing in tenants. You’ll do it every week instead of every 5 years or so!

5. Additional maintenance expenses – As the landlord, you are responsible for housekeeping, pool maintenance, and general upkeep. Not always the case with a long-term renter.

6. Some HOA – Managed neighborhoods make it tough and complicated to rent short-term Rentals. People prefer comfortable, peaceful surroundings where they feel safe and know everyone, rather than random strangers coming and going at all hours. They may submit complaints, and some HOAs may sue Short-Term Rental Owners.