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How Short-Term Rentals in Derby Can Make You Money
Short-term lets in Derby present a fantastic opportunity for property investors to generate passive income and build wealth. This is driven by its excellent location and strong demand for flexible accommodations.
Derby is well-suited to attract a diverse range of guests. By leveraging the city’s growing appeal a short-term rental property can become a lucrative investment.
Expected Rental Income in Derby
Let me provide you with a detailed analysis of how much rental income you can expect after investing in this city.
As of September 2024 the average monthly rent in Derby stands at £771. It reflects a substantial 10.2% increase from September 2023. This rise leaves behind the East Midlands average of 8.8%. However we have noticed that rental yield in Short-term apartments usually reaches higher than 20%. And this is a great opportunity for all the investors to maximise their profit.
Looking at the rental growth in Derby being an expert here is my suggestion for investors reading this.
The Mill
You should opt for this luxurious property in Derby. The property has 70 exclusive one and two bed apartments. It is located at the heart of Derby City. The site here is known as the “ Osmaston Works.” This area has a significant history in the manufacturing field.
£646 pcm
250 Years
Off-Plan
Q4 2025
Project Highlights
- The site reflects the area that hosts companies like Rolls-Royce, Bombardier and Toyota.
- Thoughtfully designed to accommodate the many different aspects of everyday life
- High-speed Wi-Fi
- Fitness centre
- Laundry room
- Prime Location and Connectivity
- Offers investors heritage and individualistic design that features to a traditional building.
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Initiate a powerful sequence of your property growth and reinvestment.
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Graduation House (15 miles away from Derby)
This off plan property will consist of 162 carefully designed and fully furnished luxurious apartments. It is purpose built plus self-contained and off-site accommodation.
Also it will offer various amenities including a bike storage plus high speed WiFi and a breakout games room with pool tables. These features will make this development an optimal option for all types of investors.
£737 pcm
999 Years
Off-Plan
Q4 2025
Project Highlights
- Comprises of 162 fully furnished apartments.
- Thoughtfully designed student apartments equipped with amenities tailored to student needs.
- Include comprehensive high-end amenities.
- It focuses on the PASA growing market.
- It is a self-contained and off-site accommodation.
Tudor (15 miles away from Derby)
This is one of the best opportunities for investors and homeowners. It comprises 20 meticulously designed units. Being 15 miles away from Derby this offers the investors a peaceful experience within the city life.
£650 pcm
6%
Ready-Now
10%
Project Highlights
- Comprises of 20 meticulously designed units.
- Only a 10% deposit is required, making it a more accessible entry point for investors.
- An 18-month payment plan is available, enhancing financial flexibility.
- Offers an exceptional living experience
- Provides a perfect opportunity for investors and homeowners alike.
Crown Works (12 miles away from Derby)
This area is projected to show 26% growth by 2035. With 74 meticulously designed units this development provides an exceptional living experience. It is a perfect opportunity for investors and homeowners alike.
£800 pcm
999 Years
Off-Plan
August 2025
Project Highlights
- It features 74 amazing spacious designed units.
- It offers a luxurious lifestyle suited for both investors looking for something special close to Derby.
- Each apartment has been crafted to support diverse aspects.
- This property is steeped in heritage with Victorian-era breweries and Georgian architecture
- It feels like one of a kind to deliver culturally rich living environment.
Look at the rising rental prices of Derby as stated by the Office for National Statistics.
Source: Office for National Statistics
Due to the arrival of COVID 19 there was a fall but the graph paced up by the end of 2023.
Serviced apartments and short-term let options in Derby are popular due to the city’s vibrant business and leisure activities.
These properties provide the perfect base for both leisure and business trips, offering easy access to surrounding locations while staying within reach of the city’s main attractions.
Guests appreciate apartments that come with a fully equipped kitchen, cosy space, and amenities such as sofa beds and parking, ideal for family stays or business trips.
Such rentals offer the convenience of cooking tenants their own meals. Your tenants can get a practical alternative to dining out. This adds value to their longer stays.
Looking ahead to 2025 the demand for rental properties in Derby is forecasted to remain strong.
The cost of buying property is continuously rising. With this more people are looking for quality rental options. Along with this over 7,000 people are currently waiting for council homes. Hence the appetite for rental units is clear. The city’s student population also adds to this demand.
Looking ahead to 2025 rental demand in the city is expected to remain strong. As property prices continue to climb, rental demand should grow alongside.
For tenants this type of property offers well-equipped apartments. Amenities like bathrooms plus sofa beds and on-site parking enhance the appeal. It ensures a comfortable stay that balances the needs of business and leisure.
As Derby continues its upward trajectory in the rental market, it offers both reliable rental income and future capital growth opportunities, making it one of the East Midlands’ top investment locations.
Areas with High Occupancy Rates
In Derby properties located in well-connected areas enjoy higher occupancy rates. This includes places like the city heart or those that are close enough to walk to restaurants and public transportation. Visitors like how convenient it is to stay in a cosy flat.
Also, those are great places to stay for both work and pleasure trips. A short drive to famous spots or nearby conveniences makes it even more appealing. With these attributes you can expect fewer vacancies and steady rental income. That too throughout the year.
Comparison Between Short-Term Let & Long-Term Let
| Feature | Short-Term Let (Airbnb, etc.) | Long-Term Let (Annual Leases) |
|---|---|---|
| Income Potential | Higher, especially in peak seasons and tourist-heavy areas | Lower, fixed monthly rent |
| Pricing Flexibility | High (dynamic pricing, flexible rates) | Low (fixed rates, adjusted annually or by lease term) |
| Occupancy Risk | Higher, with potential for seasonal vacancies | Lower, as tenants sign longer agreements |
| Maintenance Costs | Higher, with regular cleaning and repairs needed | Lower, as tenant turnover is less frequent |
| Management Effort | Requires more active management and guest handling | Minimal, with tenants handling day-to-day upkeep |
| Legal & Regulatory Risks | Potential for restrictions in some areas (especially urban locations) | Minimal, typically less regulated |
| Tenant Turnover | High turnover with short stays | Low turnover, tenants stay for longer periods |
| Investment Returns | Potentially higher, due to demand-driven pricing | Steady, moderate growth over time |
| Ideal Property Types | Vacation homes, urban apartments, and properties in tourist areas | Family homes, suburban rentals, and commercial spaces |
Analysis:
Profitability: Short-term lets offer significantly higher profit potential by leveraging peak season rates and dynamic pricing.
Flexibility: They provide more control over pricing and occupancy, allowing for maximised returns during high-demand periods.
Risk Consideration: While they have higher management needs and regulatory risks, the profit potential in desirable locations often outweighs these challenges.