Why Midterm Rentals Might be the Right Strategy for Airbnb Hosts
It may be possible for you to keep your furnished rentals full even if cities and municipalities are aggressively cracking down on short-term rentals.
While every city defines it differently, a short-term rental is typically a stay of less than 30 days and synonymous with a vacation rental. I
n some cities, STRs are considered illegal hotels, and are either prohibited or banned altogether. In many cities, STRs are also restricted by expensive fines and rules enforcing strict rules.
STR hosting can be amazing, depending on your area, but it does come with challenges. In response to all the tightening of STRs all around you, hundreds of thousands of landlords are turning to Mid-Term Rentals as a defensive strategy.
MTRs are fully furnished properties with utilities included that are designed for remote workers or families relocating for a minimum of 30 days.
As short-term rental markets change, mid-term rental investment strategies have become a stand-alone category within real estate investors.
The average length of stay of these tenants is 3 to 4 months, so this alone will protect you from STR regulations in your area.
The demand for mid-term rentals has increased dramatically for a variety of reasons, unlike the two traditional ways of renting a property, long-term and short-term.
Digital nomads and remote workers are on the rise
Hosts must find alternative rental strategies when cities limit or prohibit STRs
There are more hosts leaving STR platforms, but they still want to rent out their furnished properties
It is important for hosts to rent out their furnished properties for longer periods of time
It is more common for hosts to rent to professionals rather than vacationers
Having fewer turnover tenants is a benefit for hosts
Budget vacationers make up a higher percentage of the STR population as a result of economic shifts
Most STR regulations do not apply to tenants who stay for less than 3 or 4 months on average. Landlords should understand their city's local regulations because they can differ from one city to another.
It's not just vacationers who can benefit from mid-term rentals; IT professionals, healthcare workers, construction workers, engineers, and educators can also benefit from them.
There is also a revival of business travel!
According to the most recent business travel index outlook from GBTA, growth will continue year-over-year through 2026. Due to corporate relocation and corporate housing, the mid-term rental sector is booming.