Is a Mid-Term Rental Right for your Investment Portfolio?
What is a Mid-Term Rental?
A mid-term rental refers to a property rented out for a duration typically ranging from 30 days to 6 months. These rentals often come fully furnished and cater to individuals or families who need temporary housing for various reasons, bridging the gap between short-term vacation rentals and long-term leases.
Why Should Property Owners Consider Mid-Term Rentals?
For property owners and investors, mid-term rentals offer unique opportunities to maximize returns while minimizing the challenges associated with traditional rental strategies. Here’s why they might be right for you:
- Higher Yields: Mid-term rentals typically generate higher income than long-term leases while avoiding the seasonal fluctuations of short-term vacation rentals.
- Lower Turnover Costs: Compared to short-term rentals, mid-term rentals have fewer turnovers, which means lower expenses for cleaning, marketing, and maintenance between tenants.
- Reliable Tenant Pool: Mid-term rentals attract professionals, families, and individuals who are often responsible and stable, reducing the risks of late payments or property damage.
- Adaptability to Market Trends: With the rise of remote work, corporate relocations, and extended travel, the demand for mid-term rentals continues to grow, offering a sustainable and scalable income stream.
Is a Mid-Term Rental Right for Your Property?
To determine if a mid-term rental strategy suits your investment goals, consider the following:
- Location: Properties near business hubs, hospitals, universities, or tourist-friendly areas tend to attract mid-term renters like professionals, medical travelers, and students.
- Furnishing Capability: Are you prepared to offer a fully furnished property with amenities that cater to tenants seeking a temporary home?
- Local Regulations: Some areas have specific rules regarding rental durations and occupancy. Ensure your property complies with these guidelines.
- Management Resources: Mid-term rentals require less day-to-day management than short-term vacation rentals but still benefit from attentive tenant communication and upkeep.
Tips for Successful Mid-Term Rentals
- Target the Right Audience: Market your property to remote workers, corporate professionals, medical travelers, and families in transition.
- Create a Comfortable Space: Provide quality furnishings, high-speed internet, and essential amenities to make the property move-in ready and appealing.
- Utilize the Right Platforms: Advertise your mid-term rental on platforms like Furnished Finder, Airbnb, and Zillow, which cater to this segment of renters.
- Set Competitive Pricing: Research similar listings in your area to determine a price point that balances profitability and value for tenants.
The Future of Mid-Term Rentals for Investors
As renter preferences evolve, mid-term rentals are emerging as a lucrative and sustainable option for property owners. By catering to the growing demand for flexible, comfortable housing, you can diversify your portfolio and secure consistent returns with less hassle than short-term rentals. If you’re looking to capitalize on this growing trend, now might be the perfect time to explore mid-term rentals for your property. Written by Amy Mills from Arizona Vacation Rental Company