Research by HSBC has shown that the city is the sixth best potential region in the country to invest in the housing market, with an average annual rent of £7,800 adding up to good business for investors.
The figures show that the average house price is £110,029 – which means landlords can expect a potential gross rental yield in 2014 of 7.09 per cent.
Coventry features above Oxford, Portsmouth, Liverpool and Cambridge in the list of the top ten rental property hotspots.
Only Hull, Blackpool, Nottingham, Manchester and Southampton – which is the best potential location to invest – are higher than Coventry.
The report reckons that many of the top buy-to-let areas have relatively low property prices and strong demand from university students and young professionals.
Peter Dockar, head of mortgages at HSBC, said: “Landlords are reaping the benefit as young professionals say goodbye to capital living in favour of more affordable commuter towns.
“Despite the inevitable increase in commuter costs associated with moving further out, many still feel the move is worthwhile in order to save towards property deposits.
“House prices in these locations – while still out of reach among many first-time buyers – are relatively affordable for landlords investing in property and the demand from young professionals has pushed up rents and driven up the returns.”