R2R in Birmingham, Hands-Off
About this property
The proposed strategy is to lease the property from its owner and operate it under the agreed subletting model. The opportunity offers a lower ownership requirement, while performance depends on occupancy, operating costs and landlord consent.
This deal is suitable for hands off investors, suitable for investors with limited time or for overseas investors.
The property:
A beautifully converted period building with tall feature windows, including a striking arched window that floods the open-plan living space with natural light.
Herringbone oak floors, a sleek handleless kitchen with Bosch appliances, quartz worktops and a Nespresso machine set a true boutique-hotel standard.
Two stylish bathrooms, including an en-suite with black marble tiling, a rain shower, a traditional washstand basin and brass fittings, plus a separate Art Deco-style shower room.
Two calm double bedrooms with upholstered headboards, wall lights and quality linen, plus a dedicated work desk for business travellers.
Why invest here:
Birmingham’s short-let market runs at a £112 average nightly rate across more than 2,400 active listings, and well-finished city-centre homes sit at the top of that range.
Two bathrooms is a premium feature that lets this flat compete for sharers, colleagues and families, who pay more than couples alone.
The location in the Colmore Business District, Birmingham’s professional and financial heart, means steady weekday demand from corporate guests and contractors.
The West Midlands drew a record 101.5 million visitors in 2024, with its visitor economy worth £14 billion, so there are leisure guests to fill the weekends.
Why guests book this location:
Guests stay on Colmore Row, a short walk from Snow Hill and Grand Central, at the centre of everything the city offers.
Birmingham New Street, the busiest station outside London, handled about 36.6 million passenger entries and exits in 2024/25, putting London, Manchester and the whole UK within easy reach.
The city’s best restaurants, bars, shopping and the Jewellery Quarter are all within walking distance, so guests can leave the car behind.
With two double bedrooms, two bathrooms and a workspace, it’s ideal for business pairs, friends on a city break or families visiting for concerts, sport and events.
The Investment Required total includes the first month’s rent deposit and it’s fully furnished.
Cleaning has been calculated in the figures below. If you would like property management, just add 12%.
Financial Information
Rental price (to pay): £1,500
Refurb/works cost: £0
Sourcing fee: £3,000
Monthly profit (£): £901
Annual profit: £10,812
Monthly rent: £1,500
Annual rent: £18,000
ROCE (%): 111%
Investment required: £9,735
Investment calculators
Need finance? Sourced Financial Services specialise in HMO mortgages and can secure same-day decisions in principle.
Speak to a brokerAssumes English SDLT rates and 3% additional property surcharge. Welsh LTT and Scottish LBTT differ. Always confirm with your solicitor.
Ltd company (SPV) purchases pay the same additional-property SDLT rates, but mortgage interest is fully deductible against rental profits.