An Intro to a New Rental Market — Medium term Rentals

An Intro to a New Rental Market — Medium term Rentals

While the vacation rental industry was hit hard by the pandemic a few years ago, it did present new opportunities. Remote work became common practice, allowing more travelers to go away for longer periods. 

This means that with some thoughtful decorating and willingness to offer discounted rental rates for longer stays, traditional vacation rentals can also appeal to business professionals looking to trade in their home office for a change of scenery. Aside from business travel, there are also other reasons why a hotel room isn’t always the answer. 

medium term rentals

What Is a Mid-term Rental?

Mid-term rentals (also called medium-term rentals) refer to a rental agreement for a stay that lasts between one month and six months. 

Short-term rentals are generally considered as stays that last for shorter than 30 days. The other alternative – a long-term rental – requires a commitment of at least one year. 

The Pros of Mid-term Rentals

You might have to offer a discounted rate, but here’s what you’ll gain when you turn your property into a mid-term rental:

Fewer turnovers

One of the biggest host headaches is turnovers. It’s probably the most time-consuming part of hosting. 

Sure, creating your listing can take days, but after it’s published it’s pretty much ready for all your new renters. Only once in a while will you need to update it.

Now, getting your property ready for your next short-term guests means that after each checkout you’ll need to clean your place thoroughly. It’s a few hours of intense work, potentially two to three times per week. 

Aside from the time, it’s also linked to more expenses. You’ll need a range of cleaning supplies which will need to be replaced often. These costs add up. 

On the other hand, with medium-term rentals, you’ll only be responsible for cleaning the property every few weeks for month-to-month leases. If your lease is longer, it will be only a few times per year. 

Mid-term tenants will have to clean the property during their stay, similar to long-term leases. 

More prospective tenants

Offering your rental property to those looking for a place between three to nine months means that you can tap into a new rental market. You’re not restricted to marketing to traditional holidaymakers only.  

Protection against seasonal fluctuations

Where turnovers are one of the hosts’ most time-consuming tasks, seasonal fluctuations are one of their biggest worries. Most cities experience a drop in demand during certain times of the year. 

In fact, demand for certain days of the week is also much lower. It’s much easier to secure bookings for the weekend than what it is to fill your calendar during the week, leaving you with less rental income.  

However, if you offer extended stays during the low season, you’ll still generate a steady stream of income, helping you to pay all your recurring expenses. 

Mid-term Rentals’ Target Audience

Mid-term rentals might not appeal to your typical traveler, but there are various types of travelers that you can target like:

Families relocating

A mid-term lease is ideal for families relocating to a new city. A short-term rental or hotel room will work out too expensive, considering the steeper daily rate.  

On the other hand, they might not be ready to sign a long-term lease quite yet. If they’re new to the area, they would first like to get to know the different neighborhoods and amenities before signing a binding lease agreement. 

Digital nomads

As mentioned earlier, remote working has fuelled interest in mid-term stays. Workers that are allowed to work from any location will appreciate a flexible lease. 

Travel nurses

Travel nurses typically stay in the same location for about 13 weeks. However, it can be up to six months, making them ideal guests for mid-term rentals. 

College students

College students don’t necessarily need to stay in the same furnished apartment for the duration of their studies. Not all colleges use the same schedule for their academic year, but students typically get a break two to four times per year. So, even if they choose to use the semester system, the longest that a student will need to attend class at a time would be six months. 

Not all students want to stay in a dorm and not everyone who wants to stay there gets a room, creating a real demand for mid-term rentals. 

Sure, renting to students comes with worries about property damage and regular parties. Unlike long-term rentals, though, this option gives you the opportunity to reassess again after a few months. If a student was causing problems, you don’t have to renew the lease. 

Can You Still Use Airbnb for Medium-term Rentals?

The short answer — yes. Airbnb lets guests search and book extended stays of a month or even longer.

To make these stays more attractive, guests will be charged a single monthly payment without additional charges. These mid-term rentals will also be marked as offering amenities suited for longer stays.

In addition to Airbnb, you can also check out other mid-term rental platforms like:

  • Furnished Finder
  • Sonder
  • AvantStay
  • Mint House
  • HomeToGo

Popular Amenities for Mid-term Rental Properties

It’s important to remember that mid-term rentals mean furnished properties. Aside from the basics your tenants will need like furniture, linen, and a kitchen, it can also be a good idea to offer Wi-Fi, create a laptop-friendly workspace, and organize free parking. 

According to Airbnb, a gym is a popular amenity for monthly rentals. Adding a home gym won’t be feasible for all rental types like furnished apartments. However, if you have an unused space, adding a treadmill, an indoor bike or simply a yoga mat with a few dumbbells can be a nice touch. 

It can also be a good idea to make your listing pet-friendly. Being away from your pet for longer than a month is a tall order. Relocating families in particular will appreciate pet-friendly, medium-term rental properties.  

Which Areas Are Popular for Mid-term Rentals?

From Sydney to San Francisco, longer stays are popular all over the world. According to Airbnb, the following cities are some of the most popular destinations among travelers looking for a longer break:

  • Amsterdam, the Netherlands
  • Athens, Greece
  • Barcelona, Spain
  • Berlin, Germany
  • Cape Town, South Africa
  • Cophenhagen, Denmark
  • Lisbon, Portugal
  • Montreal, Canada
  • New York City, USA
  • Rio de Janeiro, Brazil
  • San Francisco, USA

Just like with short-term rentals, you first need to double-check the local regulations. That being said, you’ll probably have an easier time renting out your property to mid-term renters in areas with strict local laws.  

Entering Into the Mid-term Rental Market

Whether offering mid-term leases will be a smart switch will depend on factors like your property’s location, demand, and local ordinances. For example, in areas with strict regulations, medium-term rentals (or even long-term rentals) might be your only option. Add to that amenities like a hospital and offering month-to-month rentals can help address that need for corporate housing. 

While your workload will be less, you’ll still have to deal with maintenance requests and ensure your calendars remain synchronized. Vacation rental software like iGMS can still be useful for those looking to list a mid-term rental property. It’s an affordable option and offers a wide range of features to help with:

Just like you won’t know if mid–term rentals will suit your style and property until you give it a go, you also won’t know just how much you’ll save by signing up. No long-term commitment is needed. Pay month to month, but if you’re ready for a year contract, you can save up to 33%. Like a mid-term rental is a flexible solution for business travelers, iGMS is a flexible solution for hosts and property managers. 

Start Your Free 14-day Trial

Read more