Everything a Landlord Needs to Know About Mid-Term Rentals to Be Profitable

As the rental market grows, more landlords are exploring new options for increasing their profits. One strategy that is gaining popularity is mid-term rentals.

What Are Mid-Term Rentals?

Mid-term rentals are residential properties rented out for one to six months. They fall between short-term rentals (less than 30 days) and long-term rentals (six months or more). Mid-term rentals are also commonly referred to as medium-term rentals or extended-stay rentals.

How Do Mid-Term Rentals Differ from Other Types of Rentals?

Length of Stay 

Mid-term rentals typically have a minimum stay of one month and a maximum stay of eleven months.

Target Market 

They are ideal for professionals on temporary work assignments, students studying abroad, and individuals in transitional periods such as divorce or relocation.

Furnished vs. Unfurnished 

Furnished is most common. Landlords can offer a fully furnished, partially furnished, or unfurnished unit.

Who is Looking for a Mid-Term Rental?

Business Professionals

Individuals who have temporary work assignments or travel for business often prefer the comfort of a home over a hotel room.

Traveling Healthcare Professionals

Nurses, doctors, and other healthcare professionals who have temporary assignments or complete rotations.

Students

Students studying abroad or participating in exchange programs.

Individuals in Transition

Those going through a divorce, relocation, or home renovation.

Remote Workers

 With the rise of remote work, professionals seek temporary rentals in different locations.

Tips for Making Mid-Term Rentals Profitable

• Market Research: Conduct thorough research on the rental market in your area.
• Set Reasonable Rates: Set competitive rates; consider the longer length of stay. The price should settle somewhere in the middle of the other market rentals.
• Furnish Accordingly: Furnish your rental according to your target market.
• Market Effectively: Use various marketing channels. The easiest option is listing your property on a website specifically designed for midterm rentals, like Transplant Housing.
• Provide Excellent Customer Service: Be responsive to requests and concerns.
• Stand Out: Consider providing additional amenities such as a gym or pool.

What to Always Include in a Mid-Term Rental Lease Agreement

• Rental Price and Payment Terms
• Length of Stay (including early termination provisions)
• Security Deposit
• Tenant Responsibilities
• Landlord Responsibilities
• Pet Policy
• Utilities and Amenities
• Rules and Regulations
• Legal Disclaimer

The Best Cities to List a Mid-Term Rental

• New York City, NY
• San Francisco, CA
• Los Angeles, CA
• Boston, MA
• Washington D.C.
• Austin, TX
• Seattle, WA

Other qualities that make a city enticing include being a university town, a major transportation hub, close proximity to major medical hubs and hospitals, or a popular tourist destination.

The Pros and Cons of Having a Mid-Term Rental

Pros: - Higher Profits compared to long-term rentals due to higher rental rates - More Flexibility to adjust rental prices and lease lengths - Lower Turnover Rates than vacation rentals

Cons: - Potentially Higher Maintenance Costs - Less Consistent Income (possible gaps in occupancy) - More Work Involved in managing marketing and tenant turnover

Mid-Term Rentals Are The Happy Medium

By providing furnished spaces in desirable locations with flexible lease terms and amenities at a reasonable price, landlords can attract quality tenants while tenants enjoy a comfortable and convenient living situation.