Manchester is one of the most attractive cities in the UK for residential property investors, with ever rising rental prices, substantial investment from the Government’s Northern Powerhouse invititive, and around 15 prospective tenants for every home available to rent.
There’s also extremely high earning potential for short term holiday lets in the region, with 1.4 million tourists visiting each year, and rental prices in Manchester’s vibrant city centre rising significantly throughout the summer season.
However, a report by Airsorted, the world’s largest independent management company for Airbnb, has found that property management isn’t always a walk in the park, with 68% of landlords in the city admitting that they find managing property more stressful than they initially anticipated.
The home sharing service, Airsorted, surveyed landlords across the Greater Manchester area to find out more about what problems people renting out their properties in the city are facing.
According to the study the biggest problem landlords face is late payment of rent, with almost two thirds of landlords finding themselves out of pocket thanks to late-paying tenants.
The top five things landlords reported as causing them the most stress are:
- Late payment of rent 62%
- Tenants breaking rules e.g. pets, loud parties 54%
- Managing third parties e.g. cleaners 47%
- Demanding tenants 41%
- Complaints from neighbours 39%
Despite the hassle that comes along with it, when asked if they would recommend becoming a Manchester landlord to other, a staggering 87% said they would.
The study also delved into the lighter side of landlord life, asking respondents about the stranger items they have found in rental properties after a tenant has left. Half of those questioned admitted that they found something that gave them a giggle, with false teeth, underwear, and even live goldfish making the list.
Tom Pickersgill, Manchester City Manager at Airsorted, said: “Airsorted take the hassle out of property management by overseeing short-term lets for landlords in the city. We handle the time-consuming issues faced by landlords in Manchester, such as optimising a property’s Airbnb listing, vetting guests and organising five star cleans after every stay.
“As well as making life easier for landlords, we strive to maximise the guest experience. This ultimately improves our hosts’ ratings and increases the number of future bookings. We achieve this in a number of ways, such as using hotel-quality linen suppliers and offering 24/7 guest support.
“The findings of our report show that landlords in Manchester are facing daily struggles with property management. However, with the booming short-term rental industry in Manchester, Airsorted’s expert hassle-free hosting lets landlords relax and simply look forward to a successful summer.”
Airsorted uses a combination of local knowledge and an in-house pricing algorithm to calculate nightly rates helping hosts to earn 60% more than by renting out their properties directly. Initially established in 2015, Airsorted has a footprint in several countries around the globe and has earned Airbnb hosts more than £30 million in revenue to date.
Airsorted’s launch in Manchester comes after the company completed a Series A funding round worth £7 million, after securing £5 million in venture capitalist investment plus an additional £2.1 million from Crowdfunding. This cash injection is now being used to help the company achieve its ambitious growth plans to be in 38 new cities across the world by the end of 2019.