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

airbnb property for sale Sheffield City Centre

Sheffield is long renowned for its steel industry and is also home to the oldest football club in the world. The city is the first National City of Sport in the UK, with a range of high-quality facilities and a rich sporting history.

Before deciding to purchase a property in Sheffield, it’s certainly important to consider the major costs and revenue. While rental arbitrage in Sheffield 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 Sheffield are not too strict. 

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 Sheffield, which is an important step 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 Sheffield 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 Sheffield City Centre can generate an annual revenue of £32,964 with a steady occupancy rate of 70% and a nightly rate of £118.

airbnb property for sale Sheffield City Centre

airbnb property for sale Sheffield City Centre

Profitable Properties for Sale in Sheffield 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 Sheffield City Centre along with the calculated gross rental yield, cash-on-cash return, and annual revenue:

airbnb property for sale Sheffield City Centre
airbnb property for sale Sheffield City Centre

Ecclesall Heights

1. Studio-type Property for Sale Sheffield
0.5 miles walk to West Street Tram Stop

Asking Price: £85,000

GROSS RENTAL YIELD 25.56%
ANNUAL REVENUE £21,723
CASH ON CASH RETURN 50.90%
airbnb property for sale Sheffield City Centre
airbnb property for sale Sheffield City Centre

 The Hub, 2 Cross Bedford Street, Sheffield, South Yorkshire, S6 3AT

2. 1-Bedroom Property for Sale Sheffield
0.1 miles walk to Infirmary Road Tram Stop

Asking Price: £50,000

GROSS RENTAL YIELD 32.93%
ANNUAL REVENUE £16,463
CASH ON CASH RETURN 73.01%
airbnb property for sale Sheffield City Centre

Regency Court, 39 Primrose Drive, Sheffield, South Yorkshire, S35

3. 2-Bedroom Property for Sale Sheffield
1.5 miles walk to Chapeltown Station

Asking Price: £110,000

GROSS RENTAL YIELD 26.12%
ANNUAL REVENUE £28,728
CASH ON CASH RETURN 52.58%
3-Bedroom Property for Sale Sheffield
3-Bedroom Property for Sale Sheffield

Driver Street, Woodhouse, Sheffield, S13 9WP

4. 3-Bedroom Property for Sale Sheffield
0.1 miles walk to Woodhouse Station

Asking Price: £160,000

GROSS RENTAL YIELD 26.36%
ANNUAL REVENUE £42,172
CASH ON CASH RETURN 53.31%
4-Bedroom Property for Sale Sheffield
4-Bedroom Property for Sale Sheffield

 Owler Lane, Sheffield S4

5. 4-Bedroom Property for Sale Sheffield
0 miles Oasis Academy Fir Vale

Asking Price: £150,000

GROSS RENTAL YIELD 24.74%
ANNUAL REVENUE £37,113
CASH ON CASH RETURN 48.46%

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 Sheffield 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.

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Airbnb Rental Arbitrage All About Airbnb

Airbnb Rental Arbitrage in Sheffield

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 Sheffield, 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 Sheffield, Stephanie manages 29 listings and I’m pretty sure she doesn’t own the all properties. She made £270,978 in the last 12 months.  

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How much can I make with rental arbitrage in Sheffield?

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 Sheffield City Centre, located in the S1 district which ranks the highest yields (averaging 7.83%) in Sheffield. 

Since this neighborhood massively covers both student and residential properties, it has become a desirable area for these tenant groups! Now that we have the best neighborhood to invest in Sheffield, let’s talk about profitability and monthly expenses.

Sheffield airbnb rental arbitrage
Profit & Monthly Expense in Sheffield

Based on Airbtics’ data, you can earn a whopping £3,588 per month for a 3-bedroom apartment in Sheffield City Centre alone. With the data provided, you can certainly tell that investing in a property in Sheffield is profitable!

Average Rent Price Airbnb Monthly Revenue Monthly Expense Monthly Profit
£1,045 £3,588 £718 £1,825

Source: Airbtics dashboard

The monthly profit can be calculated by subtracting the Airbnb monthly revenue, the rental price and monthly expense (£3,588-£1,045-£718 = £1,825).

 Startup Cost in Sheffield

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
£4,090 2.2 month

The average estimated startup cost (for furnishing) in Sheffield is around £2,000. To compute the total startup cost, it is necessary to add the 2 months of average rent price (£2,090). Now that we have a total startup cost of £4,090, cash return time can be calculated by dividing this by the monthly profit (£1,825).

Given your monthly revenue of £1,825, it will take approximately 2.2 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 Sheffield!

Best Areas for Rental Arbitrage in Sheffield

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

1. Sheffield City Centre (S1)

Sheffield City Centre is a fast-growing city living market which has yields ranging from 6.85%! Due to the high demand for city-centre living from Sheffield’s vast population of students and professionals, S1 has the best rental yield. 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 £682 £1,849 62% £151
2-bedrooms £1,020 £2,587 65% £218
3-bedrooms £1,253 £1,683 64% £347

According to our Airbtics Dashboard, there are more than 326 Airbnb listings with 74 private room properties and 175 one-bedroom properties in this area. The monthly revenue for most properties in Sheffield City Centre is more than £1,621 per month with occupancy being more than 43%.

2. Rotherham (S60)

One of the most affordable neighborhoods in East Sheffield, Rotherham offers excellent rental yields! 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 £427 £1,220 53% £83
2-bedrooms £538 £1,349 71% £147
3-bedrooms £680 £1,624 54% £135

This area has a total of 54 Airbnb listings with 20 private room properties and 29 one-bedroom properties. The monthly revenue for most properties in Rotherham is more than £1,099 per month with occupancy being more than 42%.

3. Whirlow (S11)

Last but not least, Whirlow is one of the most up-and-coming areas in Sheffield! Because of the cosmopolitan and trendy nature of this area, investors can expect up to a 4% rental yield and attractive capital growth returns. 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 £654 £1,523 70% £82
2-bedrooms £858 £2,538 72% £112
3-bedrooms £1,077 £3,708 79% £196

This area has a total of 28 Airbnb listings with 7 private room properties and 15 one-bedroom properties in this area. The monthly revenue for most properties in Whirlow is more than £1,908 per month with occupancy being more than 58%.

how much can you make on airbnb

Short-term rental regulations in Sheffield

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

  • Register with the Private Rented Solutions Scheme
  • If you have more than one property to rent you will need to submit a separate registration form for each one
  • It is required to pay a Council tax in Sheffield

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:

  1. 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:

  1. 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:

  1. 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!

Airbtics
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Airbnb Rules All About Airbnb

Airbnb Rules in Sheffield

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 Sheffield 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 Sheffield!

Is Airbnb legal in Sheffield? 

Don’t worry, Airbnb is legal in Sheffield! Also known as The Outdoor City, Sheffield is considered one of the greenest cities in England with the Peak National Park within its boundary. Aside from its wonderful natural landscapes, the city also offers fascinating cultural & historical attractions.

Here is a little proof! As of May 2022, there are 7,873 nights available in Sheffield from Airbnb alone. Miroslav manages 37 listings, Atanas and Stephanie operate 31 and 26 respectively. 

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

Currently, there are 390 Airbnb listings in Sheffield, with 52% of entire houses earning up to £2,198 a month. The Average Occupancy Rate in Sheffield is 48% and the average daily rate is £139. According to vacation rental properties data source Airbtics, a 2-bedroom apartment in Sheffield can make up to £30,937 each year. Find out how much can you make on Airbnb!

Sheffield airbnb rules
Short-term rental policy in Sheeffield
  • Register with the Private Rented Solutions Scheme.
  • If you have more than one property to rent you will need to submit a separate registration form for each one.
  • It is required to pay a Council tax in Sheffield
how much can you make on airbnb

Buy to Let Properties in Sheffield

Having a buy-to-let property in Sheffield is an ideal investment because it is amongst the fastest-growing cities in the UK. Sheffield is perfect for property investors because of its hi-tech future & high-paying jobs, which creates a skyrocketing demand for property to buy and rent. 

Property Investment in Sheffield

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

Rented Properties in Sheffield

Once you have decided to buy a property, you have to consider the average price, population, nearby landmarks or attractions, and rental yields to expect – among the rest. It could be a challenge to find rented properties in Sheffield, so here are some of the most recommended areas that you can look into & consider purchasing:

Area Population Average House Price Average Rent Price (pcm) Average Airbnb Revenue Yields
City Centre 30,000 £114,200 £894 £1,621 Buy To Let Yield map reports strong yields are possible here with 6.85% in S1.
West Sheffield 192,000 £190,000 - £330,000 £900 £1,843 Higher than average prices mean yields here (based on S6, S10 and S11 postcodes) are in the 3%- 4% region although a student-shared property could return double that.
South West Sheffield 63,000 £240,000-£390,000 £700 - £900 £1,935 Yields are tight in the pricier areas like this, around 3%. Yields are tight in the pricier areas like this, around 3%.

Buying A Property in Sheffield

Buying a property in Sheffield with an impressive rental yield is an excellent way to have a passive income. It’s also one of the cheapest cities in England to buy a property. Sheffield is a huge university city with student housing located almost anywhere, so property investors in this city are aiming to buy more properties. By looking at the following property investment websites such as Zoopla & On The Market, you can get a grasp of the various prices in Sheffield.

Conclusion 

In my personal opinion, the biggest advantage of running a short-term rental is high return! I’ve talked to hundreds of Airbnb hosts over the past years and frequently met hosts making 15 – 30% gross rental yields, and 10-20% net. It’s also fun to do! 

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