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Let’s talk about why Birmingham is absolutely buzzing for short-term rentals. A few years back, we were testing the waters with a buy-to-let property, and to be honest, we had no idea just how popular short-term lets would become in this city. It’s not just about tourists on a weekend getaway—it’s business travellers, students, and even families in town for big events. Birmingham’s become a bit of a hot spot, and with short-term letting platforms like Airbnb growing by the minute, there’s never been a better time for you to dive in.
From our experience, having a short-term rental here has been a fantastic way to generate passive income. But trust us, it’s not as simple as throwing a property on Airbnb. You’ve got to think about things like location, regulations (Birmingham does have its own set of landlord licensing rules), and how to keep up with guest demands.
Investors make mistakes along the way, like underestimating the demand during busy times, such as the Birmingham Commonwealth Games!
It costs them, but you need to always keep an eye on the local events and price accordingly.
Birmingham city centre offers a wealth of attractions and amenities for short-term rental guests, from the vibrant Bullring Shopping Centre and historic Jewellery Quarter to family-friendly spots like the National Sea Life Centre, Birmingham Science Museum, and lush Sutton Park; combined with stylish serviced apartments and self-catering accommodation options, visitors can enjoy modern amenities like laundry facilities, proximity to Birmingham Cathedral, and easy access to stylish apartments in Birmingham’s top areas.
Birmingham serviced apartments, especially those in prime locations like the Birmingham Jewellery Quarter and other top neighborhoods in the West Midlands, provide excellent options for visitors seeking quality apartments in Birmingham, as serviced apartments offer convenience, flexibility, and a home-like experience for both business and leisure travelers.
Why is Birmingham a Top Location for Short-Term Lets?
When one of our investors first bought a flat near Birmingham New Street Station, he thought it’d just be a good long-term rental. Fast forward a couple of years, and he realised the demand for short stays was incredible. People want flexibility, and Birmingham city centre gives that—whether they’re here for a quick business trip or to explore the city’s rich history.
For investors like you, Birmingham is a goldmine. It’s cheaper than London. But you still get a solid return on investment. We remember researching rental yields, and in certain areas like the Birmingham City Centre and Digbeth, short-term lets can easily outperform traditional rentals.
Plus, If you are flying into Birmingham Airport, a convenient shuttle service runs directly to Birmingham International Station, allowing you to reach the city centre and settle into your apartment within minutes. Guests came from everywhere—business travellers, tourists, and even people just passing through for a night or two. The variety of guests alone is one of the reasons Birmingham is such a sweet spot for short-term property investments.
Overview of Birmingham’s Economy and Tourism Industry
Birmingham’s economy is absolutely thriving, and that is one of the biggest reasons short-term rentals have taken off here. We are talking about a city that is no longer just about its industrial past. It is now a centre for finance, tech, and creative industries. HSBC moved its UK headquarters here, and companies like Deutsche Bank have set up shop, which means more business travellers needing affordable accommodation.
Then there’s the tourism side of things. Birmingham sees around 40 million visitors a year—that’s no small number. Big events at the NEC, the Bullring for shopping, and places like the Birmingham Museum & Art Gallery bring in tonnes of tourists. Many investors had their Birmingham serviced apartments rented out for two solid months during the Commonwealth Games, and it was booked out months in advance! The demand is just crazy, and with the city’s growing economy, this isn’t slowing down anytime soon.
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Growing Demand for Short-Term Accommodation from Business Travellers and Tourists
Business travellers are honestly a dream when it comes to short-term lets. They’re in and out quickly, don’t make much of a mess, and are usually happy to pay a bit more for a great place with good free Wi Fi and proximity to business hubs. Our investors had a few properties near Broad Street and the Jewellery Quarter, which are prime areas for corporate stays. Most of the time, these guests book during the week, filling in the gaps left by weekend tourists. It is found that offering things like a workspace and fast internet really boosts bookings from the business crowd.
On the flip side, tourists are looking for a more ‘Birmingham’ experience. When one of our investors rented out a flat near the Birmingham Hippodrome, the demand was sky-high during theatre season. Tourists love being close to attractions, and they’re willing to pay a premium for convenience. Having properties in different areas has really helped cater to both markets—business during the week, tourists on the weekends. It’s all about maximising occupancy rates, and Birmingham, with its mix of business and leisure travellers, makes that pretty easy.
Key Neighbourhoods in Birmingham Ideal for Short-Term Lets
When it comes to choosing the right neighbourhoods for short-term lets in Birmingham, location is everything. In our experience, Birmingham City Centre is a no-brainer. You’ve got the proximity to Birmingham New Street Station, plenty of history and culture, and more restaurants and bars than you can count.
It is a guaranteed hit with tourists. Business travellers love it because they can hop on a train or head to meetings without much hassle.
Another area investors had great success with is Digbeth. It’s got this edgy, artsy vibe that really appeals to younger travellers, especially those who want to explore Birmingham’s more alternative side. Prices are still reasonable there, but they’re creeping up as the area becomes more popular. There’s also Selly Oak, which is perfect if you’re looking to tap into the student and academic market—thanks to the Birmingham University. It’s less flashy than the Birmingham City Centre but still delivers strong returns, especially during graduation season.
Sutton Coldfield is more of a residential area, and it’s great for families visiting for events or just wanting a quieter spot. The key to doing well in properties here is to match the area with the type of guests you want—each neighbourhood has its own vibe, and finding that fit can really make a difference.
Major Upcoming Infrastructure Projects That Will Increase Demand
Birmingham city centre is on the cusp of some huge infrastructure projects that are set to boost short-term rental demand even more. HS2 is the big one. When this high-speed train is fully operational, it’ll cut the journey to London down to 45 minutes, which is a game-changer for both tourists and business travellers. We’ve already noticed the impact on property prices in areas near the new Curzon Street Station, and demand is only going to rise. You should seriously consider snapping up another comfortable accommodation in the area before prices go through the roof.
Then there’s the Birmingham Smithfield development. It’s a massive project that’s going to add thousands of new homes, retail spaces, and entertainment venues to the Birmingham City Centre. We think this is going to have a huge ripple effect on short-term rental demand. Once the area is developed, you can bet it’ll become one of the most sought-after spots for both tourists and business travellers. If you’re looking for long-term capital appreciation alongside your short-term rental income, keeping an eye on these projects is a smart move.
Why Should You Be Investing in Short-Term Lets in Birmingham?
Investing in short-term lets in Birmingham has been one of the best decisions our investors have made, both for generating passive income and growing their property portfolios.
There are some huge benefits compared to traditional long-term rentals, especially if you are strategic about it. From higher rental yields to tax advantages, the potential is immense, especially in a city like Birmingham city centre that’s booming with tourism and business travel. If you like and enjoy the flexibility of managing your property, short-term lets might be exactly what you’re looking for.
Higher Rental Yields
The main reason our investors pivoted towards short-term lets was the potential for higher rental yields.
For instance, during peak periods like major events or holidays, we have managed to double our investor’s usual rental income.
It is not all sunshine—there are gaps between bookings, and the constant need to keep the place in top shape. But even with the occasional vacancy, our short-term rentals in central Birmingham have outperformed long-term lets, especially when we cater to business travellers during the week and tourists on the weekends.
Flexibility and Control Over Property Use
If there’s one thing we really appreciate about short-term lets, it’s the flexibility. With a long-term tenant, you are tied down for at least six months or more, and once they’re in, it’s hard to make changes.
But with short-term rentals, you have total control. You can block off dates if you need the property for personal use, make updates and improvements without waiting for a lease to end, and adjust pricing based on demand.
There is also the freedom to test out different rental strategies.
One of our investors once shifted focus from tourists to business travellers and saw an increase in midweek bookings. You can not do that with a traditional rental. Having that flexibility has allowed him to maximise income while keeping the property in great condition, ready for future opportunities.
Tax Advantages
Here is where it gets even better; the tax benefits. When investors first start, they don’t realise how many tax advantages come with running a short-term rental. In the UK, if you rent out a furnished property, you can deduct expenses like maintenance, cleaning, insurance, and even things like bedding and kitchenware.
And trust us, those costs add up when you’re managing a short-term rental, but they’re worth it.
One tip keep a clear record of everything. We’re talking receipts, invoices, the whole lot. Also, if you meet certain criteria, you can benefit from the Furnished Holiday Let tax rules, which are more favourable compared to traditional buy-to-let properties. It’s a great way for you to reduce your taxable income and keep more of your profits.
Potential for Higher Appreciation in Booming Neighbourhoods
If you’re in property investment for the long haul, appreciation is just as important as rental income. Birmingham is growing at a rapid pace, and some neighbourhoods are experiencing serious property value increases. Our investor got one flat in Digbeth that’s almost doubled in value since he bought it a few years ago, and the rental income has been fantastic too. Areas around the HS2 rail project and the Birmingham Smithfield development are where you want to focus if you’re eyeing capital appreciation.
These booming neighbourhoods are transforming fast, and being an early investor can pay off. What we love about short-term lets in these areas is that not only do we get high occupancy rates now, but we’re also sitting on assets that are gaining value year after year. It’s a win-win for investors.
Birmingham’s combination of a thriving economy, booming tourism, and massive infrastructure projects is setting the city up as one of the best places for short-term rental investments. With the potential for higher rental yields, greater flexibility, and long-term appreciation, this is an opportunity you don’t want to miss out on. Whether you’re just starting or expanding your portfolio, Birmingham’s short-term rental market is full of promise for smart investors.
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How to choose the right property for short-term letting in Birmingham?
It is not just about buying any flat and putting it on Airbnb. The location, size, and amenities you offer can make or break your success in this market.
And with competition growing, especially in hot areas like the Birmingham City Centre, you have got to be smart about where and what you invest in. Here is what we have found works best.
Factors to Consider: Location, Property Size, and Amenities
Location is king—seriously, nothing beats it. Rose, one of our investor’s first investment was a one room flat just outside the Birmingham city centre, and while it was fine for long-term tenants, it did not perform as well with short-term guests. She realised people want to be close to the action, near things like Birmingham New Street Station, Broad Street, or the Bullring. If your property is more than a 10-minute walk from major attractions, you might struggle with occupancy.
Size is also key. Studio flats are great for solo travellers or couples, but if you can invest in a two-bedroom property, it opens up your audience to families or business groups.
Guests want comfort, and small touches like quality bed linen or even a coffee machine can lead to glowing reviews and repeat bookings.
People love having a bit more space. As for other amenities, things like fast and free WiFi, a washer/dryer, and a well-equipped kitchen can set you apart from the competition.
Understanding Guest Preferences. What Tourists and Business Travellers Want?
Tourists and business travellers have very different needs, and understanding those can give you a serious edge. Tourists are all about the experience. They want to be close to attractions, restaurants, and cultural spots.
They will pay a little more for a property near the Birmingham Museum & Art Gallery or Victoria Square. Business travellers care more about convenience and practicality.
Corporate guests are always looking for strong WiFi, a comfortable desk space, and proximity to business hubs like the Colmore Business District or Broad Street.
They book during the week, so keeping your calendar open for midweek stays can really boost your occupancy rate. Cater to both groups, and you will have back-to-back bookings year-round.
The Importance of Proximity to Transport Links, Birmingham City Centre, and Key Attractions
When we say location is everything, we are mainly talking about proximity to transport links and attractions. We have had properties within a 10-minute walk of Moor Street Station and Birmingham New Street, and they have consistently outperformed those further out. Easy access to transport is non-negotiable for business travellers, and tourists love being able to hop on a train or bus without a hassle.
Being close to key attractions like the Birmingham Hippodrome or the University of Birmingham makes a huge difference too. It is an easy way to boost your property’s appeal and justify higher nightly rates.
If you’re in the Chinese Quarter, don’t miss out on the great food and vibrant drink scene. Birmingham’s culinary scene and nightlife will keep you entertained throughout your stay.
Evaluating Local Competition and Occupancy Rates
Before jumping into any property, it is vital to check out the local competition. When investors start out, they do not pay enough attention to this, and flat in a saturated area struggle with occupancy. Always do a deep dive into platforms like Airbnb or Booking.com to see what similar properties are charging and how often they are booked. If an area is flooded with options, it might be harder to keep your place filled year-round.
Occupancy rates fluctuate based on season, local events, and location. Birmingham has high demand during the week from business travellers, and weekends are generally strong thanks to tourism. However, do not assume every property will stay booked.
You have got to understand the market and tailor your pricing to keep up with local trends. In our experience, investing in areas with moderate competition but high demand, like Digbeth or Selly Oak, has given us the best returns.
The city is home to iconic venues like the International Convention Centre, Utilita Arena Birmingham, and the Barclaycard Arena. Making it a popular choice for those attending concerts or events. For those looking for relaxation, the Fitness Centre and the Electric Cinema offer great ways to unwind.
Legal and Regulatory Considerations for Short-Term Lets in Birmingham
If you are getting into short-term rentals in Birmingham for the first time, you will get overwhelmed by the legal side of things. You will assume it is as simple as listing a property and collecting bookings, but there are a lot of rules to follow.
Birmingham has specific regulations that short-term landlords need to be aware of. If you do not follow them, it will cost you big time. From local council regulations to landlord licensing, it is essential to stay on top of these to avoid fines or worse.
Local Council Regulations on Short-Term Rentals
One thing we learned early on was that the local council in Birmingham takes short-term lets seriously. There are limits on how many nights you can rent out your property without needing to register for planning permission. Generally, if you are renting for more than 90 days a year, you might need to get formal approval. A friend of ours ran into issues because they did not check with the council first and got hit with a hefty fine.
Birmingham’s regulations can vary depending on the area. You must check with your local authority. And if you are thinking of running multiple short-term lets, you may even need a different type of licensing, so do your homework.
Health and Safety Standards for Short-Term Lets
Health and safety is one of those things you cannot overlook with short-term lets. When our investors first started, they did not realise the importance of things like fire safety regulations and providing things like fire extinguishers and smoke alarms.
You need to make sure your property complies with the Housing Health and Safety Rating System (HHSRS).
Trust us, you do not want to wait until something goes wrong to realise you are not compliant.
There are also rules around electrical and gas safety. We have got all our properties on an annual check schedule to avoid any last-minute surprises.
Your guests need to feel safe. If something happens and you are not prepared; you could face serious legal trouble.
Planning Permission Requirements and Potential Zoning Restrictions
Planning permission is not always required for short-term lets in Birmingham, but in some cases, it is unavoidable. Some areas have specific rules about how properties can be used, and switching from a long-term rental to short-term letting can require permission.
You have to go through the process, and while it is not too complicated, it will delayed your launch by a few months.
It is always best to check if the area where you are investing in has zoning restrictions or not, if it does then this could prevent you from letting short-term.
If your property is in a conservation area or a residential-only zone, for example, you could face challenges getting permission.
Angel Gardens is located in an up-and-coming district of Liverpool. It is in close proximity to two major regeneration projects: the £150 million Project Jennifer and the £5.1 billion Liverpool Waters scheme.
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Landlord Licensing and Insurance Considerations
In Birmingham, many areas require landlords to have a landlord licence, especially in areas with selective licensing.
This licence is designed to ensure that landlords meet certain standards when it comes to the condition of the property and how they manage their tenants, including short-term ones.
Insurance is another thing you do not want to overlook. Standard home insurance would not cover short-term lets, so you need to make sure you have short-term rental insurance. One of our investors made this mistake once, and when a guest accidentally flooded the bathroom, they were not fully covered. Now, they always make sure our properties have the right insurance in place, it is a lifesaver.
Maximising Your Rental Income and Occupancy Rates
Once you have got the legalities sorted, the next step is maximising your income and keeping those bookings rolling in. Trust us, it is not enough just to have a great property in a prime location—you have got to be strategic.
We have had to tweak our pricing, adjust for seasonal demand, and improve the guest experience over time to keep our short-term rentals competitive. Here is what we have learned about keeping those occupancy rates high and your income steady.
Pricing Strategies: How to Price Your Property Competitively?
Pricing is one of the trickiest parts of managing short-term lets. If you price too high, you will scare away potential guests, but if you price too low, you are leaving money on the table. We have experimented a lot with different pricing strategies. One thing that works well is dynamic pricing—where your rates automatically adjust based on demand.
Tools like Airbnb’s smart pricing can help, but also keep an eye on local events too, like concerts or conferences at the NEC, and bump up your prices accordingly.
Offering discounts for longer stays (like 5% off for week-long bookings) keeps your occupancy rates up during slower periods. And do not forget to check out your competition—look at similar properties in your area and see what they are charging.
Just lowering your rate by £5-10 per night can give you the edge.
Seasonal Trends and Demand Fluctuations in Birmingham
Birmingham has a pretty predictable seasonal trend when it comes to short-term rentals.
During the summer months when tourism peaks. We have noticed a lot more holidaymakers booking our properties. However, it is during big events, like the Christmas market or the Commonwealth Games, when we see a real spike in demand. During these times, you can nearly double your nightly rates—and people still book!
But it is not always high season. January and February can be pretty slow, especially for tourists. To get around that, try to target business travellers more during those months. Offering midweek deals or targeting long-term stays from corporate guests can help keep your occupancy rate steady, even when demand drops.
Use Online Platforms (Airbnb, Booking.com, etc.) for Better Visibility
They do all the heavy lifting when it comes to marketing and attracting a wide audience.
Using Airbnb and multiple platforms increased our occupancy rates significantly. More eyes on your property mean more bookings, plain and simple.
Each platform has its quirks. On Airbnb, photos and reviews are crucial—so make sure your property looks its absolute best and your guests leave great reviews. Booking.com is more business-focused, so highlight features like strong WiFi and a workspace. And while each platform takes a cut, the exposure they provide is worth it, especially if you are trying to fill up a calendar.
Tips for Offering a Standout Guest Experience (Reviews, Amenities, etc.)
Great guest experiences lead to great reviews—and those reviews will make or break your short-term rental. We make sure every guest feels like they are getting the best service, whether that is with a quick reply to their messages, leaving a welcome basket, or offering little extras like premium bed linen or a coffee machine. It is those small details that get people talking.
Amenities plays a very important role. Fast WiFi, a comfortable mattress, and a clean, modern private bathroom will always get you points. Start offering streaming services like Netflix. And do not forget the basics, like leaving clear instructions for check-in, how to use the appliances, and local recommendations.
Happy guests will leave good reviews which can help you to stand out in a crowded market.
