Manchester is widely regarded as a city with a lot of potential for property investors. The city has a thriving economy, a growing population, and a vibrant cultural scene. One area that has recently gained attention among investors is the short-term let market. In this blog post, we will explore the potential of short-term lets in Manchester and provide an investor’s guide to this market.

What are Short-Term Lets?

A short-term let is a property that is offered to tenants for up to six months, though it will often last only a few weeks or nights. Short-term lets, also known as Airbnb investments, have always been an option for investors, but it has become more popular now that investors realize they can significantly increase their returns, as long as they buy in an area where demand is high. This can either be from the corporate let market or the holiday maker/tourism sector.

The Potential of Short-Term Lets in Manchester

Following the pandemic, short-term lets in Manchester became an even more attractive option for buy-to-let landlords as people going on staycations increased. They also opted to rent out privately owned properties in comparison to bigger hotels as a result of the pandemic and lockdowns. With more visitors and tourists than ever, Manchester was named by the global travel guide Lonely Planet as a top world destination for 2023 – the only UK city to feature in the highly sought-after annual list. The city is on a list including 30 must-visit locations.

Manchester is a city that has been growing in size at an increasing rate. From 2011 to 2021, the city’s population increased by 9.7%, from 503,100 to 552,000. The city is actually increasing at a rate 10-15 times the rate they can build property.

The city has an extensive public transport system, including buses, trams, and trains, which makes it easy to get around. Manchester is also home to one of the UK’s busiest airports, Manchester Airport, which offers direct flights to many international destinations. In addition, the city has easy access to major motorways, including the M60, M62, and M6, which makes it easy to travel to other parts of the country.

Tourism alone isn’t the only source of demand for a potential short-term let, a lot of people fail to realize that a lot of bookings come from the corporate let market. Employees can come up North for training for a few days/weeks. They would be on short-term contracts from anywhere between 3 nights to 3 months. Beyond this, you have many different conferences in the city.

Why are Short-Term Lets a Good Idea in Manchester?

Short-term lets are a good idea in Manchester for several reasons. First, the tourism demand alone is enough to sustain above 80% occupancies consistently. However, due to the demand from so many sectors, we are seeing occupancies hitting over 90%, on a consistent basis. Second, short-term lets boast higher nightly rates than standard lets allowing the landlord to secure a significantly higher level of rental income each month than what a standard AST let can offer. Rental income and yields via short-term lets are often over double that of the income via AST’s.

This type of rental is also a good option for landlords who may wish to have their property available at a certain time in the year for personal use, those days can be booked out of the calendar.

Short-Term vs. AST

AST stands for ‘Assured shorthold tenancy’. It is the most common tenancy if you rent from a private landlord or letting agent. They are most commonly fixed-term over a 6 or 12 months period. The overwhelming positive of a short-term let is that the landlord can earn more money over the same amount of time as a landlord who has rented their property out on an AST. For example, looking at the area of Hulme just outside Manchester city centre, a landlord might charge £750 per month for a two-bedroom flat on an AST. On short-term lets through Airbnb, they can make almost double this on an occupancy of 80%.

Final Thoughts

In conclusion, Manchester is a city with a lot of potential for property investors, particularly in the short-term let market. With a growing population, thriving economy, and vibrant cultural scene, the city attracts tourists, professionals, and conference attendees, making it an ideal location for short-term lets. Short-term lets in Manchester offer landlords the opportunity to earn more money over the same amount of time as with assured shorthold tenancy agreements. With demand consistently above 80% and even hitting over 90% occupancy of days in each month, short-term lets in Manchester are a great investment option for landlords looking to maximize their returns – as long as the property permits this type of rental.

Not all properties do permit this type of rental which can limit your income. In the hands of experienced short-term let Agents, many of the myths about short-term lets are also fully taken care of for a ‘hands-off’ and hassle free investment to the landlord whilst securing much higher returns.

If you’d like to find out which developments permit short-term lets in Manchester at the moment, and what the deposit amount is to secure a property there, contact us now to speak to a Consultant.