October 28, 2022

Mid Term Rentals

Cities and municipalities are aggressively cracking down on short-term rentals (STRs), and if you’re feeling the squeeze as a host, there may be another way to keep your furnished rentals full.

Although every city may define it differently, a short-term rental is synonymous with ‘vacation rental’ and commonly defined as a stay of 30 days or less. As some cities view STRs as illegal hotels, they are either prohibiting them in some area, or sometimes banning them altogether. Many cities are also requiring permits and otherwise attempting to limit STRs by implementing strict regulations and enforcing them with expensive fines.

Being a STR host can be amazing, depending on your area, but it comes with its own set of challenges. If you’re a host who feels you need a defensive strategy to all the STR tightening happening around you, there are hundreds of thousands of landlords who believe they have found the sweet spot with Mid-Term Rentals.

Mid-term rentals (MTR) are fully furnished properties with utilities included designated for remote workers or relocating families staying for 30+ days at a time. Recognizing that the short-term rental market is changing, the mid-term rental investment strategy is now a stand-alone category within real estate investors and data analysis sites.

“Since these tenants stay for an average of 3 or 4 months, many times, the length of stay alone will protect you from your local STR regulations.”

Most investors and property owners only think about the two traditional ways to rent a property, long-term and short-term, but the demand for mid-term rentals has skyrocketed for a variety of reasons.

  • A huge increase in remote workers including digital nomads
  • Cities that limit or prohibit STRs are forcing hosts to find other rental strategies
  • Hosts are leaving STR platforms but still want to rent out their furnished property
  • Hosts are looking for longer stays for their furnished property
  • Hosts prefer professionals as tenants rather than vacationers
  • Hosts enjoy better tenants with less turnover
  • Economic shifts creating more budget-vacationers and therefore lower STR bookings

Since these tenants stay for an average of 3 or 4 months, many times, the length of stay alone will protect you from your local STR regulations. Of course, every landlord needs to familiarize themselves with their local regulations because they can vary widely from city to city.

While the STR is primarily for the vacationer, mid-term rentals are perfectly suited to the traveling professional such as remote workers in technology, healthcare, construction, engineering, and education--just to name a few.

Also, business travel is back! The most recent business travel index outlook, released by GBTA , forecasts steady YOY growth through 2026. The mid-term rental sector is seeing an increase in corporate housing and relocation housing as a result.

“Landlords set the price of their unit and keep 100% of the rent.”

Furnished Finder is a zero-booking fee, subscription-based, mid-term rental platform that provides landlords with tenant leads and booking inquiries from interested tenants coming to the area. Landlords set the price of their unit and keep 100% of the rent. With about 24 million annual users, the heavily trafficked site is the most reliable platform for landlords looking to host monthly traveling professionals.

Furnished Finder also provides landlords with all the tools you need to secure a tenant including screening reports, leases, online rent payment, renter’s insurance, and tenant tracking.

As STR hosts get fed-up with all the booking fees and increased pressure from their HOA’s or cities, they don’t need to sell all the furnishings and retreat back to the traditional unfurnished rental strategy. Mid-term rentals is the preferred rental strategy for over 125,000 US landlords on Furnished Finder and countless other investors across the globe who prefer renting to professionals for longer stays.

www.furnishedfinder.com.

Author : FF Staff