Even the nicest casas by the sea struggle during the low season. So how do you increase the occupancy rate and generate revenue from your rental? Consider using a mixed approach to renting out – short-term rentals for mid-through-high seasons and mid-term rentals for low season.
In mid-term rentals, tenants stay at your property for at least one month, causing much less trouble. You don’t have to wait for them at the doorstep or remain on the phone 24/7. Moreover, medium-term rentals are growing. In a recent interview*, Brian Chesky, Airbnb CEO, shared that stays of 28+ days account for 17% to 18% of the company’s business, up from 13-14% pre-pandemic.
Mid-term rentals are a big niche with rich opportunities, but it differs from short- and long-term rentals. Is a mid-term lease an option for you? Learn mid-term rental meaning, rules, pros and cons, booking sites, and tips to start a business in our guide.
What are midterm rentals?
First of all, let’s clarify what is a mid-term rental first of all. Mid-term rentals last from 1 month to 12 months on average. It’s something in between sharing your property for a weekend and committing to a long-term agreement. They are perfect for people who need to live somewhere for an extended period but don’t plan to stay there for years.
Mid-term rental properties often look like short-term ones. You can book an extended stay on Airbnb or another STR platform and live in a fully furnished apartment. Basic amenities, furniture, and regular cleaning are also often included.
Characteristics of mid-term housing rentals
Mid-term rentals have some unique rules compared to other types of rentals. You can still use Airbnb and similar platforms to find tenants, but the terms of stay differ. Here are the main characteristics of mid-term rentals:
- Duration. The typical duration is from one to six months, but sometimes people stay for up to twelve months.
- Lease terms. A mid-term lease agreement is super flexible with monthly or quarterly renewals. If needed, guests can book more days through the rental platform or communicate directly with an owner or property manager for prolongation.
- Furnishing. Most mid-term rentals are fully furnished and ready for living.
Amenities. Most properties have Wifi access, an equipped kitchen, a washing machine, air conditioning, and other amenities. - Cleaning. Hosts must do a deep cleaning before every new guest, preparing the property for rentals. Then, the cleaning schedule and charges depend on tenants’ preferences and readiness to take care of the property. You can arrange weekly or bi-weekly cleaning to keep things tidy.
- Profitability. Mid-term rentals have slightly lower rates than short-term stays. Many hosts provide a discount if guests book a property for a longer period. Yet despite the lower rates, mid-term rentals ensure higher occupancy, which makes up for the difference. As a result, a mid-term rental business can bring a decent income comparable to short-term rental profitability.
Mid-term rental management strikes a balance between flexibility and stability. Tenants can have a comfortable stay for several months without the need to sign a long-term agreement and furnish property. On the other hand, hosts can finally relax and stop managing new check-ins every several days.
What guests use mid-term rentals?
Another thing you will like about mid-term rental property management is the guests. These people are less likely to throw a party and leave for good, as it sometimes happens with short-term stays. They usually come for work or study and take good care of your place.
The key types of guests include:
- Students. Students who have a semester in another city, take an internship, or study abroad may need a place to stay for several months.
- Traveling professionals. A new office, temporary transfer, or short-term work assignment are common reasons people look for mid-term rentals.
- Digital nomads. Remote workers who love traveling often move from city to city, exploring new places without commitment to a long-term lease.
- People in transition. Mid-term housing rental may be a life-saving option for those who have a renovation at their apartment and need to move out.
- Seasonal travelers. People may come for several months to leave by the sea during the off-season. Locations popular for seasonal work may also have many visitors needing furnished mid-term rentals.
This is not an extensive list of people who use medium-term rentals. The reasons to rent a property for several months vary. Maybe you just get bored with your current place and want to spend a few months somewhere else. Or you want to take care of your elderly grandma in another city. The key point is that hosts must prepare the place for the specific needs of the people who will live there mid-term, whether students or seasonal travelers.
Mid-term rentals vs. short- vs. long-term rentals
Each rental model comes with benefits and limitations. While with short-term rentals, you get higher rates, mid- and long-term offer more stability and predictability. There is no perfect option for hosts. Everything depends on your resources and readiness to stay actively involved in rentals. Below, we compare the key characteristics of the core rental models to aid you in making the choice.
| Short-term | Mid-term | Long-term | |
| Duration | Several days to weeks | 1 to 12 months | 12 months+ |
| Furnishings and amenities | Fully furnished | Fully furnished | Optional |
| Seasonality | Affects rentals | Affects rentals | Minimum impact on rentals |
| Flexibility | High | High to moderate | Low |
| Payments | Per night | Monthly or as agreed | Monthly |
| Rates | High | Lower than short-term | Lower than mid-term |
| Involvement | Regular check-ins and 24/7 communication | Check-ins every several months and more stability | Minimum involvement after an active initial period |
| Best for | Tourists, business travelers, event attendees | Traveling professionals, digital nomads, students, people in transition | Families or individuals looking for stability and a place to live |
Pros and cons of mid-term rentals
Now that you know what is a medium-term rental, let’s talk about the good and the bad of this model. Check the pros and cons of mid-term rental management to make sure you are ready to start rentals and won’t be surprised by related challenges.
Pros of mid-term rentals
- Reliable tenants. Well-educated professionals or students are the most common mid-term tenants. These categories are usually responsible and friendly, which is not always the case with short-term rentals.
- Stable income. Mid-term rentals are quite predictable and allow you to estimate the income for the next few months.
- Easier management. You don’t have to meet guests every several days and become a dedicated host actively involved in rentals. You will only have a busy period once a few months to find and check in new tenants.
- Lower turnover costs. Mid-term rentals require less frequent cleaning and amenities replacement than short-term, which means lower maintenance expenses.
- Reduced wear and tear. When tenants are more settled, the property suffers less. The risk of damage or theft is also much lower as you build trustful relationships with your guests.
Cons of mid-term rentals
- Complicated tenant search. Mid-term rentals are less popular than short- or long-term rent, and finding tenants may be more problematic. Even though you can use STR platforms like Airbnb to rent a property for over a month, it may be difficult to find new guests quickly.
- Lower income than short-term. Since tenants pay on a monthly basis or get a discount for more days booked, mid-term rentals generate less income than short-term.
- Vacancy periods. If you fail to find another tenant right away, your property may stand idle. That’s why you need an effective medium-term rental strategy to keep it busy.
- Market restrictions. The regulatory requirements and lease for mid-term rentals may be less clear than for other types of rentals. You will need to clarify whether the chosen location is suitable for mid-term rent before starting a business.
Best mid-term rental markets
The profitability of your mid-term rental property largely depends on location. Pick the wrong place, and you are in trouble. Finding tenants will be challenging, and your rental business may not survive.
Here, we have selected the types of best mid-term rental markets. These should guide you on what location may be a good option.
- Major cities and metropolitan areas full of corporate headquarters that attract business professionals.
- College and university hubs with lots of students in need for extended stays.
- Popular locations for healthcare to host patients and their relatives or medical students coming for internship.
- Cities popular for relocation to rent your place to digital nomads or people who are changing jobs.
- Places not flooded with short-term rentals since unsuccessful STRs often turn to mid-term rentals and may become your competitors.
The key idea is to pick a place with a strong demand for mid-term rentals. It may be a city popular with remote workers, students, medical tourists, or any other tenants interested in renting an apartment for several months.
Our upcoming posts will provide a more detailed overview of mid-term rental markets with specific options. Follow us for updates.
Booking sites to list your mid-term rentals
Many STR platforms support furnished mid-term rentals and enable hosts to configure automated discounts for such bookings. It encourages guests to stay in one place longer and works well for mid-term housing. Below are a few options for STR and mid-term rental platforms to list your place.
Airbnb
Despite being a top resource for STR rentals, Airbnb also promotes mid-term stays. Hosts can set the minimum and maximum number of nights and how far people can book into the future. Airbnb also has weekly and monthly discounts that property owners can configure in their accounts.
Aribnb’s popularity is a huge benefit for finding guests. The average duration of Airbnb mid-term rentals may be shorter than average, but you will have a steady flow of tenants.
Housing Anywhere
Housing Anywhere is a mid-term housing platform helping international students and young professionals find homes abroad. You can use it in over 150+ cities in Europe and globally. According to the platform, 70% of tenants come from abroad and stay for 4-12 months.
The platform displays monthly changes with details on availability and whether utilities are included in the price. It helps the right hosts and guests find each other. Hosts can also set the preferences for ideal tenants to improve matching.
Furnished Finder
The name “Furnished Finder” speaks for itself. It offers monthly furnished rentals for corporate travelers, travel nurses, relocating families, and other categories of mid-term tenants. Property owners can list an entire place, room, private complex, or hotel for a $179 annual subscription with no booking fees. The platform is mainly targeted at the US market, with an average stay of 90+ days.
Insurance for mid-term rentals
Mid-term rentals require more flexible insurance than long-term ones. A standard landlord insurance is not enough here. That’s why you should get a specialized mid-term rental insurance policy with more profound coverage. Damage protection services by Truvi give you coverage suitable for mid-term rentals. It’s more extensive than regular insurance and can be used with OTA platforms like Airbnb. With up to 5,000,000 in damages, it’s a reliable way to protect your property.
How to start a mid-term rental and make it successful?
Starting mid-term rentals is easy. But if you want to make them profitable and optimize property management efforts, you need a strategy. Here, we outline the key steps to prepare for mid-term rentals and maximize the return on investment.
1. Analyze the market
Find information on mid-term rental demand and average rates in potential locations to choose a suitable property. Make sure the place is located in an area where you will have regular bookings. You must also navigate the local regulations to understand what limitations may apply and how they affect the terms of your lease agreement.
2. Learn the rules of rental platforms
Carefully read the rules of rental platforms to understand how you can manage pricing, what settings are available, and other details. Check the reviews of hosts who already use these resources. It will help you pick the best platforms to list your property and clarify the standard requirements for furnishing and amenities.
3. Prepare the property and get insurance
Most mid-term rentals have furnishing, so it’s better to fully equip your place for comfortable living. It requires more initial investment but will bring you more tenants in the long run. You may be less obsessed with designs and offering a unique experience than with short-term rentals, but coziness and cleanliness still matter. You must also get insurance to protect your property from different types of damage.
4. Create and publish listings
Take professional pictures of your place, set up preferred rental terms, and write an honest description of your property. A nice listing will help market the property and avoid prolonged vacancy periods.
5. Set up guest screening
Even though mid-term rentals usually bring well-behaved guests, you should carefully check who enters your property. Advanced guest screening services allow you to reject booking requests done with fake names and screen guests against reputable databases to detect suspicious ones. It will save you from property damage and other troubles like theft, noise complaints, and conflicts.
6. Optimize repetitive processes
You must minimize expenses and personal involvement to get maximum income from mid-term rentals. Consider using specialized tools for hosts and hiring a third-party vendor for tasks like cleaning. There are many great apps to automate guest communications, rental analytics, accounting, taxes, and other operations.
Summing up
Mid-term rentals are an alternative option for property owners who don’t want to rent their place long-term, while short-term rentals seem too time-consuming. You can generate a decent profit without getting too involved in property management. Besides, medium-term rentals have gained popularity with more people traveling for work and studies. Increasing demand for more extended stays allows you to achieve high occupancy.
We will continue uncovering mid-term rental specifics in upcoming posts to guide you through different aspects of rentals.
