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Which Inner City Homes Most Appeal To The Rental Market?

It’s no secret that many people living in the middle of a sprawling city like London or New York are young professionals.

These are typically people that work in the heart of the city and undoubtedly earn enough to afford to live in the middle of a cosmopolitan area where there’s always something going on 24/7.

If you’re thinking of investing in an inner-city property to rent out to such a demographic, you might be wondering what type of urban home will offer the best ROI for your property portfolio.

With the above in mind, take a look at the following examples to inspire and help you make the right investment choice:

Serviced Apartments

Did you know that serviced apartments are one of the most popular choices for professionals living and working in the heart of a major city?

The reason for their popularity is simple: they are ideal for people that only want temporary accommodation but don’t want to stay at a hotel. Examples include professionals on a work placement within the city for say six or twelve months.

Serviced apartments are self-contained abodes that have everything a tenant needs from furniture and entertainment systems to cutlery and cooking utensils. They appeal to luxury property tenants and professionals on a modest income alike.

House Shares

Some professionals working in the city may only want a place to sleep that is warm and safe, and they may not mind sharing certain facilities like bathrooms and kitchens as they probably have a place of their own outside of the city.

For such tenants, house shares or HMOs (homes with multiple occupancies) can provide an excellent ROI for inner-city residential property investors.

Tenants literally rent a bedroom and part of their rent includes the use of shared bathrooms, kitchens, and laundry areas.


If you want to target professionals that have long-term accommodation needs, a townhome might be the best option for your investment requirements.

In a nutshell, a townhome is a type of house that shares some walls with neighboring properties and may even include communal features like shared hallways, open spaces, and laundry facilities.

Townhomes are popular in cities like London and colonial-era cities in the United States like New York.

Studio Apartments

Last but not least, some young professionals cannot afford large penthouse apartments in the heart of the city, but they still want their own private space with no shared facilities.

A compromise that’s very popular with such a demographic is studio apartments. These are apartments that typically contain an open-plan layout where the bedroom, living area, and kitchen are all part of the same open area. Only the bathroom has its own separate room.


As an investor, you’ve got the choice of many different property types when it comes to renting to young professionals living and working in the middle of a busy city.

The one you choose will ultimately depend on your investment budget, the area within the city, and the demand for the type of property you want to rent out.

Hopefully, the above examples will give you some ideas of possible investment opportunities in your chosen area. Good luck!