Imagine unlocking a secret level in the real estate game where the rules are simpler, the players are more reliable, and the rewards are just as sweet. Say hello to mid-term rentals—a booming market segment that’s quietly transforming property investment strategies. With regulations putting a choke-hold on short-term rentals in many American cities, mid-term rentals are a perfect solution for savvy property owners looking to maximize income with minimal hassle. Find out why mid-term rentals are such a game-changer and how they can benefit your portfolio.
What Are Mid-Term Rentals?
Mid-term rentals are like the middle child of the rental world—often overlooked but packed with potential. These rentals typically offer furnished stays lasting from one to twelve months. Unlike short-term vacation rentals, which tend to attract tourists, mid-term rentals cater to people on work assignments or those in need of temporary housing for a few months. Think urban professionals moving for job opportunities or overseeing longer-term projects that require a relocation. This market segment is all about providing a home away from home, but without the extended commitment of a long-term lease and the uncertainty of a short-term stay.
Market Trends Driving Growth for Mid-Term Rentals
Regulatory Pressures
According to Bigger Pockets, to curb the growth of short-term rentals, many cities have implemented new regulations, including limits on stay length, property type, licensing, insurance, permits…and more. These restrictions make it challenging for property owners to profit from short-term stays. By contrast, mid-term rentals, which align more closely with traditional leasing practices, are less regulated and more appealing to those seeking a viable alternative.
Expensive Long-Term Housing
The cost of long-term housing is skyrocketing, and affordable options are harder to come by. When they do appear, they’re snatched up immediately. As housing becomes less accessible, more people are turning to mid-term rentals as a flexible and financially sensible solution.
Remote Work
The rise of remote work has reshaped the housing needs of professionals. According to Forbes, by 2025, an estimated 32.6 million Americans will be working remotely. With the ability to work from anywhere, many are opting for mid-term rentals to explore new cities without the long-term commitment.
Benefits for Investors
Lower Regulatory Hurdles
Compared to short-term vacation rentals, mid-term rentals face fewer regulatory challenges—that means less red tape and fewer headaches for property owners. You can operate with more freedom, making it a more attractive investment option.
Operational Cost Savings
One of the biggest advantages of mid-term rentals is the lower operational costs. With less turnover, you save on cleaning, maintenance, insurance costs and administrative tasks. Plus, no more scrambling to get the property ready for the next guest every few days!
Steady Demand
Professionals moving to urban areas create a constant demand for mid-term rentals. The flexibility of mid-term rentals, along with furnished options and space for families, appeals to many tenants. This steady stream of reliable tenants means less vacancy time and more consistent income for you.
High-Quality Clientele
Mid-term renters are often professionals who have been vetted by the corporations that hire them. This means less wear and tear on your property. How, you may ask? Corporate clients tend to make better guests, resulting in fewer repairs to your property.
Considerations for Investors
Lower Nightly Rates
While it’s true that you might earn less per night compared to short-term rentals, the overall benefits often outweigh this drawback. As AvenueWest CEO Angela Healy puts it, “You need to consider the cost of your time, stress levels, and operational fees, such as higher ongoing maintenance and repair and insurance costs in the short-term model. If you do the math, you may find you grossed more in the short-term model, but you may not net more.”
(By the way…if you’re exploring a mid-term rental model, give us a call. We can help you do the math.)
The Corporate Housing Advantage
Corporate housing takes the mid-term rental model to the next level. These fully serviced apartments are in high demand among business travelers and relocating professionals. Here’s why corporate housing is a game-changer:
High Demand and Premium Income
Business travelers and professionals relocating for work create a robust demand for corporate housing. Companies are willing to pay a premium for comfortable, reliable housing solutions that meet the needs of their employees.
Long-Term Partnerships
Corporate housing thrives on long-term partnerships with companies like AvenueWest. These partnerships guarantee a consistent flow of quality tenants and a reliable income stream, making it a stable and profitable investment.
Operational Efficiency
Streamline your operations to minimize costs and maximize efficiency. Implementing a seamless check-in/check-out process, maintaining high standards of cleanliness, and providing top-notch customer service can make a significant difference. When you work with a property management company like AvenueWest, we can take all of that off of your plate.
Partner with Experts
Working with a team that knows the ins and outs of mid-term rentals can be a game-changer. Companies like AvenueWest specialize in managing mid-term rentals and corporate housing, offering personalized support and expert advice to help you succeed in this market and maximize your income without taking on additional stress or work.
By understanding the market trends and leveraging the benefits of mid-term and corporate housing, property owners can maximize their returns and tap into a growing demand for flexible, comfortable housing solutions. Your future self—and your bank account—will thank you.
Interested in learning more? Call or email us today. Conversations are always free.
1.800.928.1592
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