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Why Serviced Apartments Are Leading the Market in 2025

March 27, 2025
Summary

Introduction

Manchester’s rental market continues to outperform expectations, attracting both UK and overseas investors seeking reliable returns and long-term capital growth. With strong demand across the board - particularly for flexible, furnished apartments in the city centre - serviced accommodation has emerged as a top-performing investment strategy.

According to JLL, rental prices in Manchester are forecast to grow by an average of 4% per year until 2027, outpacing most other UK cities. The average gross rental yield in the city centre stands at 6.5%, significantly higher than the national average of 4.75%. These strong fundamentals, paired with the growing appeal of short-term stays, have made serviced apartments one of the most compelling options for landlords in 2025.

At CasaCity, we offer professional property management tailored to serviced accommodation in Manchester. Our fully managed approach helps investors maximise returns while eliminating the stress of day-to-day operations. If you're considering entering this space or looking to optimise your current investment, here's why professional management makes all the difference.

Key Takeaways
Why Use a Property Management Company in Manchester?
Save Time, Reduce Stress

Managing property yourself is rarely as straightforward as it seems. From late-night maintenance issues to urgent guest requests, the day-to-day demands of short-term letting can be relentless. A professional property management company takes care of guest communication, booking coordination, cleaning, maintenance, check-in and check-out procedures - giving you back your time while preserving the guest experience. At CasaCity, we manage the full operation so you can benefit from a fully passive income stream.

Maximise Your Rental Income

Serviced accommodation, when managed correctly, outperforms standard buy-to-let in terms of both rental income and occupancy rates. We use data-driven pricing models to adjust nightly rates based on seasonality, demand, and local events - ensuring your property is never underpriced. In addition, our team works to reduce void periods and maintain premium presentation standards, which results in more positive reviews, repeat bookings and higher monthly income. Investors working with CasaCity often achieve rental income significantly above local market averages.

Stay Compliant With Evolving Regulations

The short-term rental market is becoming increasingly regulated. From health and safety obligations to changes in local authority policies, landlords are expected to remain up to date with a growing list of responsibilities. Failure to comply can lead to fines or legal disputes. CasaCity handles all legal compliance requirements on your behalf, including guest screening, deposit handling, fire safety documentation, and ongoing updates based on evolving legislation. This removes the risk and allows investors to operate with peace of mind.

Consistently High Guest Satisfaction

Reputation is critical in the serviced accommodation sector. Properties with excellent reviews consistently rank higher on platforms like Airbnb and Booking.com, attracting more guests and commanding better rates. To achieve this, guests need a seamless experience from check-in to check-out. Our service includes professional cleaning, high-quality furnishings, efficient check-in procedures, and full-time support. When guests feel cared for, they are far more likely to return, leave glowing reviews, and recommend your property to others - driving sustained revenue.

Ideal for Overseas and Portfolio Landlords

Whether you live in another part of the UK or are based internationally, CasaCity provides full transparency and support. With a local team on the ground and a fully managed service in place, there’s no need to be in Manchester to benefit from its thriving property market. We’re your local partner, ensuring your investment remains secure, profitable, and professionally managed.

Why Serviced Apartments Work So Well in Manchester

Manchester has become one of the UK’s most attractive cities for serviced accommodation thanks to a unique combination of demand drivers. The city hosts a strong calendar of conferences, concerts, sporting events and corporate travel, resulting in consistent demand for flexible short-term lets. With a lower entry price point compared to cities like London, and a higher proportion of young professionals and relocators, the appeal of Manchester is undeniable.

Serviced apartments are particularly attractive to guests seeking a home-like experience with more space and comfort than a hotel room. On average, serviced apartments offer around 30% more space than comparable hotel accommodation, often at a lower price point - particularly for longer stays. They also offer additional amenities such as fully equipped kitchens, in-unit laundry, high-speed Wi-Fi, and living areas. For groups, families or business travellers, this creates a far more practical and cost-effective alternative to booking multiple hotel rooms.

What’s more, the pricing model for serviced apartments is dynamic. Unlike fixed-term tenancies, nightly rates can be adjusted in real-time based on occupancy and demand. This gives landlords the opportunity to maximise income during peak periods and maintain competitive pricing during quieter months. Over time, this flexibility results in higher overall returns, especially in a city like Manchester with year-round demand and strong occupancy levels.

How CasaCity Helps Investors Succeed

CasaCity offers a full end-to-end property investment and management service, designed specifically for investors in serviced accommodation. We work with high-quality new-build apartments in Manchester city centre and provide everything landlords need to start or scale their portfolio - without the operational burden.

Our services include:

  • Access to luxury new-build apartments in high-demand locations
  • Professional furniture packs tailored for lettings
  • Full property setup, listing, and photography
  • Dynamic pricing and multi-platform listing management
  • Housekeeping, guest communication, and 24/7 operational support
  • Legal compliance management and ongoing landlord reporting

Whether you own one property or a growing portfolio, CasaCity gives you the infrastructure to grow with confidence.

Conclusion

Manchester continues to be one of theUK’s top cities for property investment - and serviced apartments are at theheart of that success. With high yields, growing demand, and a changing rentallandscape, serviced accommodation offers investors a dynamic way to earn morefrom their assets.

But success in this space depends onexpert execution.

Partnering with a specialist propertymanagement company like CasaCity allows investors to capitalise on Manchester’sbooming rental market without the time burden or compliance worries. Withstrong local knowledge, seamless operations and a proven management model,CasaCity is here to help landlords unlock the full value of their property.

FAQs
Is serviced accommodation more profitable than a traditional buy-to-let?

Yes. Serviced accommodation often delivers higher returns, especially in areas with strong tourism or corporate demand. While running costs are higher, the increased nightly rates and reduced long-term wear can lead to stronger net returns.

How much support does CasaCity provide?

We offer a full property management service, from set-up and furnishing to bookings, guest support, and compliance. Landlords receive regular updates and reporting while we manage everything on the ground.

Is Manchester a good location for short-term lets?

Manchester is one of the top-performing cities in the UK for serviced accommodation. With year-round demand from business travellers, events, and tourism, the city offers a strong return on investment and consistent occupancy rates.

Can I convert a long-term rental into serviced accommodation?

Yes, but you must check your mortgage terms, lease restrictions, and any local planning regulations. We would also advise looking into adding our Serviced Accom+ package which will optimise the property ready for serviced rentals. CasaCity can review your property and provide guidance on converting it into a fully compliant and high-performing serviced apartment.

Maximise Your Property Investments with Us!

Whether you're looking for expert property management, reliable rental services, or high-quality renovations, we've got you covered.Contact us today to learn how we can help you unlock the full potential of your property!

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