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Last Updated on October 23, 2022 by Chris Panteli
Mid-Term Rentals
When most people think about rentals, they think about short-term vacation rentals or year-long leases. But there is a middle ground that thousands of guests are looking for in the US.
If you find it difficult to fill your calendar in the off-season or there isn’t much demand for a vacation rental in your area, renting out your Airbnb medium-term could be ideal.
This guide will show you everything you need to know about mid-term rentals and how you can get started with a medium-term rental business.
If medium-term rentals aren’t right for you, have you considered house hacking? This is another excellent way to live for free and make a profit using the Airbnb model. Check out our house hacking guide to learn more.
What are Mid-Term Rentals?
A mid-term rental is a tenancy agreement that lasts between three and eight months. It’s an alternative to short-term vacation rentals but not as much of a commitment as a long-term rental.
Mid-term rentals are ideal for people looking for temporary housing for a specific period. Some of the guests you could target include:
- Traveling nurses
- People being relocated
- Business travelers
- Digital nomads
- People looking for temporary accommodation after a natural disaster
- Military personnel between deployments
Medium-term rentals are trendy in Europe but still emerging in the US. This means there is a gap in the market to provide quality mid-term accommodation in cities throughout the US.
Pros and Cons of Mid-Term Rentals
It’s important to know the pros and cons before starting a mid-term rental business.
✅ PRO: More stability
When you rent out a property short-term, it can be stressful finding enough guests to fill your calendar every month.
Renting mid-term means you’ll have guests for longer, giving you a more consistent rental income. The average occupancy rate is around 87% for a mid-term rental.
❌ CON: Less revenue
A mid-term rental earns less per night than a short-term rental. People are willing to pay a premium for a vacation rental for one to two weeks, but mid-term guests need more affordable rates since they stay longer.
✅ PRO: Good for the off-season in seasonal cities
Mid-term stays are a great way to fill your calendar in the off-season. If you already get a lot of reservations during the summer or around events, you can have the best of both worlds and keep your property full year-round.
❌ CON: Harder to find tenants
There is a much smaller pool of guests looking for a medium-term rental. It takes more effort marketing since it’s a more specialized niche.
✅ PRO: Allowed in cities that ban STRs
Many cities don’t allow short-term rentals, so offering mid-term leases is a way around this. Check your local regulations to ensure mid-term rentals are permitted and the insurance you’ll need.
Are Mid-Term Stays Right for You?
Not all Airbnb properties are suitable for a mid-term stay. Before you change up your marketing strategy, figure out if there is demand in your area.
Large cities like New York usually have a high demand for mid-term rentals because professionals need them when traveling for business.
But if you’re near a business district or large hospital, you might also find high demand for longer stays.
What to Consider Before Renting Your Pad Mid-Term
If there is high demand for mid-term rentals in your area, here are some things to consider before finding your first guests.
Pricing
Renting out short-term gets a higher nightly rate than mid-term. You’ll need a different pricing structure if you plan on offering longer stays.
Research mid-term rentals in your area and figure out a competitive pricing strategy. Remember, you’ll save money on booking fees and cleaning teams, and there’s less chance of empty slots.
Managing a mid-term rental
It takes significantly fewer hours to manage a mid-term rental compared to a short-term:
- You’ll spend less time on check-ins and check-outs
- Fewer deep cleans between guests
- Less time spent communicating with potential guests
However, it’s also important to know that mid-term renters expect more from the property. You’ll need to include more amenities, offer quiet hours, and be on-hand for maintenance issues.
Legal aspects
The laws around mid-term housing differ between cities, so you’ll need to look up your local regulations to make sure you follow all your local laws.
Many cities don’t allow short-term rentals or Airbnb subletting, but mid-term stays offer a workaround. Unlike vacation rentals, you’ll probably have to provide tenancy contracts, and you’ll be legally considered a landlord.
Amenities
When setting up a mid-term rental property, think of it more as temporary housing than an Airbnb apartment.
Traveling nurses and business professionals will expect:
- Quality furnishings and modern furniture
- Fast WiFi, cable TV, and entertainment packages
- White goods and a coffee machine
- Quality linens
- Laundry facilities
- Quiet hours
The more amenities you can offer, the easier it will be to attract mid-term guests.
Where to Find Medium-Term Renters
Airbnb is one of the best platforms for booking short-term stays, but it can be harder to find mid-term guests on that platform alone.
Here are some tips for finding the best medium-term renters on some of the most popular platforms:
- Furnished Finder – popular with traveling nurses and business professionals looking for temporary accommodation for up to nine months.
- Airbnb – make sure to set a higher minimum stay during your off-season to attract mid-term renters.
- Facebook Groups – there are tons of local groups dedicated to temporary housing. Find active groups in your city to advertise your property.
- Housing Anywhere – this site is more prevalent in Europe, but it does list major US cities.
- Kopa – another popular site for mid-term housing that is popular with business travelers.
Next Step: Optimize Your Listing
Does the mid-term rental market sound right for your property? There’s a lot to consider, but it can be a great way to fill your Airbnb during the off-season.
Short and mid-term stays work great as a combined strategy, giving you the best of both worlds depending on demand.
If you’re just starting out in the Airbnb market and want to get your very first guests (for a short-term or mid-term stay), check out our following guide on how to rent out your house on Airbnb for everything you need to know.
