Tag: lng_-1.1331969

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

Post author By Robyn Peña
Post date November 24, 2022

airbnb property for sale Leicester City Centre

Leicester is rich in culture and famed for diversity, making it feel like the world is on your doorstep. The city is home to one of the biggest celebrations of Diwali outside of India, centered on the city’s Golden Mile, named after the vast number of traditional Indian jewelry shops, boutiques and restaurants. To sum it up, Leicester has all the hallmarks of a great location to invest in property.

Before deciding to purchase a property in Nottingham, it’s certainly important to consider the major costs and revenue. While rental arbitrage in Leicester is fairly popular and does not require you to purchase a property, it’s still recommended to learn about buying a property for Airbnb in the future and making sure that it’s profitable. It’s also good to know that Airbnb rules in Leicester are not too strict, although a permit to sublet a property is required.

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. In this article, we’ll discuss the metrics in order to gauge the best property investment in Leicester, which is an important step when buying a property investment in the UK.

This includes the best website recommendations for property investment, 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 Leicester 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 Leicester City Centre can generate an annual revenue of £15,019 with a steady occupancy rate of 50% and a nightly rate of £94.

airbnb property for sale Leicester City Centre

Profitable Properties for Sale in Leicester 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 newly built home properties in Leicester 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.

Rutland House, Rutland Street, Leicester

1. Studio-type Property for Sale Leicester
0.2 mile walk to Leicester Station

Asking Price: £55,000

GROSS RENTAL YIELD	24.81%
ANNUAL REVENUE	£13,647
CASH ON CASH RETURN	48.67%

Tudor Studios, Tudor Road, Leicester LE3

2. 1-Bedroom Property for Sale Leicester
0.3 miles to Fosse Primary School

Asking Price: £40,000

GROSS RENTAL YIELD	29.57%
ANNUAL REVENUE	£11,828
CASH ON CASH RETURN	62.94%

Marlborough Place, 1 Duke St, City Centre, Leicester LE1

3. 2-Bedroom Property for Sale Leicester
0.2 miles to The Children’s Hospital School (SEN)

Asking Price: £100,000

GROSS RENTAL YIELD	25.10%
ANNUAL REVENUE	£11,828
CASH ON CASH RETURN	49.52%

Saxelby Road, Asfordby, Melton Mowbray LE14

4. 3-Bedroom Property for Sale Leicester
0 miles Captains Close Primary School

Asking Price: £75,000

GROSS RENTAL YIELD	25.86%
ANNUAL REVENUE	£19,394
CASH ON CASH RETURN	51.81%

Greenlawns, 75 St. Marks Road, Tipton, West Midlands DY4

5. 4-Bedroom Property for Sale Leicester
1 miles to Tipton

Asking Price: £39,000

GROSS RENTAL YIELD	18.84%
ANNUAL REVENUE	£7,348
CASH ON CASH RETURN	30.76%

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 Leicester 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_52.6362, lng_-1.1331969

Airbnb Rental Arbitrage All About Airbnb

Airbnb Rental Arbitrage in Leicester

Post author By Robyn Peña
Post date August 10, 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 Leicester, 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 Leicester, Miroslav manages 23 listings and I’m pretty sure he doesn’t own the all properties. He made £85,378 in the last 12 months.

How much can I make with rental arbitrage in Leicester?

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 Leicester City Centre, located in the LE1 district with a healthy 5% yield.

Since the city centre offers some of the cheapest properties, city living has also become popular in this area. Now that we have the best neighborhood to invest in Leicester, let’s talk about profitability and monthly expenses.

Profit & Monthly Expense in Leicester

Based on Airbtics’ data, you can earn a whopping £2,222 per month for a 3-bedroom apartment in Leicester City Centre alone. With the data provided, you can certainly tell that investing in a property in Leicester is profitable!

Average Rent Price	Airbnb Monthly Revenue	Monthly Expense	Monthly Profit
£871	£2,222	£444	£907

Source: Airbtics dashboard

The monthly profit can be calculated by subtracting the Airbnb monthly revenue, the rental price and monthly expense (£2,222-£871-£444= £907).

Startup Cost in Leicester

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
£3,742	4.1 months

The average estimated startup cost (for furnishing) in Leicester is around £2,000. To compute the total startup cost, it is necessary to add the 2 months of average rent price (£1,742). Now that we have a total startup cost of £3,742, cash return time can be calculated by dividing this by the monthly profit (£907).

Given your monthly revenue of £907, it will take approximately 4.1 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 Leicester!

Best Areas for Rental Arbitrage in Leicester

Before investing in a particular area in Leicester, 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 neighbourhoods in Leicester ranked by their annual revenue, along with their occupancy & daily rates!

1. Leicester City Centre (LE1)

Considering Leicester as one of the top cities in Britain to invest in, its city center offers vast tourism and business districts that demands the majority of rental growth! Not to mention that this area offers the cheapest properties. 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	£644	£1,212	50%	£104
2-bedrooms	£849	£2,051	60%	£141
3-bedrooms	£871	£2,222	60%	£169

According to our Airbtics Dashboard, there are more than 190 Airbnb listings with 51 private room properties and 113 one-bedroom properties in this area. The monthly revenue for most properties in Leicester City Centre is more than £1,139 per month with occupancy being more than 37%.

2. Clarendon Park (LE2)

Clarendon Park is part of South Leicester which is the most popular residential area for professionals and student markets. 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	£618	£1,186	66%	£74
2-bedrooms	£826	£1,041	68%	£99
3-bedrooms	£873	£1,352	52%	£140

This area has a total of 32 Airbnb listings with 13 private room properties and 18 one-bedroom properties. The monthly revenue for most properties in Clarendon Park is more than £1,147 per month with occupancy being more than 48%.

3. Glenfield (LE3)

Last but not least, one of the successful areas with the highest employment rates in Leicester, Glenfield! 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	£771	£1,162	49%	£92
2-bedrooms	£872	£1,641	65%	£136
3-bedrooms	£916	£3,086	47%	£200

This area has a total of 97 Airbnb listings with 51 private room properties and 64 one-bedroom properties in this area. The monthly revenue for most properties in Glenfield is more than £925 per month with occupancy being more than 43%.

Short-term rental regulations in Leicester

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

You must obtain a permit from Leicester City Council before sub-letting part of your property to another person.
It is required to pay a Council tax in Leicester.
Any property with five or more people who form unrelated households, and share amenities such as a kitchen or bathroom, must have an HMO licence.

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_52.6362, lng_-1.1331969

Airbnb Rules All About Airbnb

Airbnb Rules in Leicester

Post author By Robyn Peña
Post date July 27, 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 Leicester 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 Leicester!

Is Airbnb legal in Leicester?

Don’t worry, Airbnb is legal in Leicester! This multicultural city is located in the heart of England where one can admire the stunning buildings with Victorian architecture. Leicester is a lively city with a variety of cafes, bars, museums and art galleries.

Here is a little proof! As of May 2022, there are 3,390 nights available in Leicester from Airbnb alone. Miroslav manages 23 listings, Tarun and Mo operates 17 and 15 respectively.

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

Currently, there are 200 Airbnb listings in Leicester, with 46% of entire houses earning up to £1,622 a month. Average Occupancy Rates in Leicester is 41% and average daily rate is £90. According to short-term rental market data source Airbtics, a 2-bedroom apartment in Leicester can make up to £20,795 each year. Check out our Airbnb Profit Calculator

Short-term rental policy in Leicester

You must obtain a permit from Leicester City Council before sub-letting part of your property to another person
It is required to pay a Council tax in Leicester
Any property with five or more people who form unrelated households, and share amenities such as a kitchen or bathroom, must have an HMO licence

Investment Property in Leicester

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

Citry Centre	Population: 8,500	Average House Price: £180,300	LE1 postcode areas investors could expect a healthy 5% yield
The Western Suburbs	Population: 98,000	Average House Price: £200,000-£290,000	Investors might expect yields here of 4% based on LE3, but less in LE19 with 3%
North and North East Leicester	Population: 125,000	Average House Price: £200,000-£260,000	Property investors could expect a yield of 3% based on LE5 and 4% based on LE4.

Source: Buy to Let Leicester

Best Buy to Let Areas in Leicester

If you are looking to start an Airbnb business in the UK, this is your go signal to do so! Since Leicester is UK’s first European sustainable city, it has the most affordable housing available. Depending on your preferred type of property, here is a table of the best area with their average property & rent prices:

Area	Average Property Price	Average Rent Price (pcm)	Average Airbnb Revenue
Braunstone	£225,647	£791	£707
Syston	£240,202	£574	£1,618
Glenfield	£288,718	£776	£899
Rothley	£328,924	£760	£1,132
Oadby	£348,870	£834	£746

Source: Short-term rental calculator

Properties for Rent in Leicester

Buying a property in Leicester with an impressive rental yield is an excellent way to have a passive income. Leicester is best known for its modern economy with a strong market for student accommodation. By looking at the following property investment websites such as Right Move and Zoola, you can get a grasp of the various prices in Leicester.