If you are a landlord looking to make the most money on your properties, it may be time to consider switching from long-term or vacation rentals to mid-term furnished rentals. In the age of Airbnb, more people switched from 12 month leases to turning their properties into vacation rentals, but this strategy can also come with a range of complications. Handling a constant turnover that requires cleaning and ongoing communication with potential renters can make a part-time gig feel like a full-time job. In addition, more cities are cracking down on these types of rentals and imposing rules and regulations that make it more difficult for landlords to rent vacation properties.
The more lucrative alternative is to turn your properties into mid-term furnished rentals that are available on a monthly basis. With this approach, you can charge more per month, deal with less wear and tear and have a steady stream of reliable renters. Keep reading to learn more about the benefits of offering monthly furnished rentals and tips for how to successfully rent your properties.
What is a Mid-Term Furnished Rental?
Essentially, you are providing a move-in-ready space that includes furniture, electronics such as a TV, microwave, iron, etc., towels and linens, basic kitchen supplies, dishes, and any other extras like a grill. This allows people to come with nothing but their suitcases full of clothes and toiletries and get set up without any extra hassle.
Who is Looking for Mid-Term Rentals?
If you have been dealing with long-term leases, you might be surprised to learn about the demand for mid-term furnished rentals. Oftentimes, professionals who are moving to the city for work will start with a short-term lease as they get to know the area and shop around for more permanent housing. A mid-term rental allows them to decide exactly what neighborhood is right for them and provides time to go through the home-buying process.
Students also make up a significant portion of the mid-term rental market. They may be moving to the city to complete an internship, residency, or semester study program that only requires them to be in town for 3-4 months. These students are usually in the medical field and simply need a place to sleep while they finish their residency. A furnished rental provides them with a convenient space that they can move in and out of without having to deal with a long-term lease agreement.
Finally, traveling nurses represent the largest segment of potential renters. Typically, traveling nurses operate on 13 week contracts. That means you have a guaranteed tenant for three months at a time. Perhaps best of all, the hiring hospitals not only conduct a background check and drug screening for all the nurses, but also pay for their housing. You can have a steady stream of reliable and responsible tenants who won’t have any problems making payments.
Why Traveling Nurses Need More Housing Options
Now is an especially lucrative time to cater your rental properties to travel nurses because it is a growth industry that needs support. A national nursing shortage (opens in new tab) is forcing hospitals to fill in staffing gaps with contract travel nurses. Applicants for these positions are in high demand and that means they will need comfortable and convenient housing while they work in temporary roles. If you are located near hospitals and other medical facilities, you may be able to fill a growing need and help travel nurses provide vital services to hospitals who desperately need help meeting increasing demands on the healthcare system.
How to Furnish Your Rental
While fully furnishing your home or apartment will require an investment upfront, you will be amazed to see how quickly you make that money back. Even if you spend $3000 outfitting your space, you can charge $300-$500 more per month (opens in new tab) than you would with a long-term rental. You can start turning a significant profit in just a matter of months.
As you begin to shop around for furniture, consider the type of audience you want to target. While some renters will be looking for more high-end spaces, you may limit your potential clientele if you spend too much on furnishings. On the other hand, you may want to cater to tenants who are looking to spend a little more in order to enjoy additional comforts and luxuries. Just be sure to keep your ideal tenant in mind as you furnish your space so that you have a clear strategy that will yield the results you want.
Choosing Furniture
When it comes to furnishing your space, keep it simple, modern and neutral. While your personal style may be more vibrant and eclectic, it may not be for everyone and you want a rental that will appeal to the most people possible. Beige and light blues may not be the most exciting choices, but they will speak to a larger audience.
It may also be tempting to cut corners and stock your rental with thrift store and garage sale finds, but this strategy may end up backfiring. While you may be able to find some good deals, you don’t want to use furniture that is worn or clearly outdated. A trip to Ikea (opens in new tab), Target (opens in new tab) or other bargain stores can provide you with modern and affordable furniture that will create a clean and appealing look.
Also, be sure to add some decorative details to make your space feel more homey and attract renters. Plants, artwork, books and ample lighting can make a home or apartment feel more inviting. Just a few of these details will transform a space and increase the number of inquiries you receive.
Finally, be sure to include a workspace with a desk in your rental. Since most of your tenants will be living there for school or work related reasons, they will appreciate room to set up their computer and other materials.
How to Market Your Furnished Rental
There are websites that specifically cater to people looking for mid-term furnished rentals. Furnishedfinder.com (opens in new tab) and Travelnursehousing.com (opens in new tab) are two great options. As you create your listing for these sites or other resources, here are some important tips to keep in mind:
Clearly state that the rental is fully furnished and move-in ready. Try to work this into the title of your listing and make sure that it is stated within the first couple sentences of your listing. This is your big selling point, so put it front and center.
Be specific about listing what furniture, supplies and other amenities are included. Most properties will come with the basics, such as sofas, beds, TVs, etc. If you offer any extras or luxuries, highlight these in order to set yourself apart.
Include details about parking and transportation. Does the property include a designated parking spot or driveway? Will tenants have access to additional on-street parking? Is the rental near a train or bus stop? Is the area pedestrian friendly in case they want to walk or bike?
Mention proximity to grocery stores, universities, hospitals, downtown areas and other attractions. The closer you are to these amenities, the more attractive your property will be.
Include details about your pet policy. You may want to consider allowing certain pets in order to appeal to more renters.
Include plenty of high quality photos. (opens in new tab)
Take the time to properly clean and stage your property in order to show it in the best possible light. Be sure to capture plenty of angle and include photos of the furniture and outdoor spaces. You really can’t include too many photos in your listing, however, attaching just a few images and hurt your chances of attracting tenants.
Potential Challenges of Hosting Mid-Term Rentals
While renting your furnished properties on a monthly basis comes with a lot of benefits, there are some potential challenges and drawbacks to be aware of before entering the market. However, many of these problems can be avoided with a little preparation and foresight.
Restrictive rules and regulations. Be sure to check all your local zoning and rental laws before you begin renting your property on a mid-term basis. While you won’t fall under the same category as vacation rentals, there may be some extra steps you need to take or permits you will need to secure. Do your research and have everything in place so that you don’t run into any problems down the line.
Finding renters. With mid-term rentals, you may have to do more work to ensure that you have tenants lined up and you don’t experience slower periods when your space goes unused. Providing good furnishing and maintaining the property can help you earn good reviews and word of mouth endorsements that can help market your property and keep it rented. Investing time in creating an informative listing with plenty of details and visuals is also key to having a booked property. It might also be worth working with staffing agencies in order to raise awareness about your property and connect with your ideal audience.
With more frequent turnover, there is the potential that you will have to deal with more repairs and maintenance issues. However, many landlords find that there are actually less issues with mid-term tenants because they are usually older, responsible professionals.
In addition, you can always help deal with these costs through security deposits. Typically, landlords will require a month’s rent upfront. This will cover any damage or items that go missing. If there aren’t any problems, the money can be fully refunded to the tenant.
Benefits of Becoming a Mid-Term Rental Landlord
With the right approach, you can become a successful mid-term furnished rental landlord and experience these benefits:
Better earning potential. You can charge more for mid-term rentals than long-term options, which translates into more earnings for you.
Less turnover. If you have been using your property as an Airbnb type rental, you are dealing with frequent turnovers that create more work on your part. With one to three month leases that are eligible for renewal, you can deal with less turnover, cleaning and paperwork.
Consistent income. Less turnover also means more consistent and reliable income, which will make it easier to handle your finances.
Be a part of a growth industry. While you might not have considered mid-term furnished rentals as a business opportunity before, this is an important segment of the rental market that will continue to thrive as nurses and other professionals take on temporary roles across the country to fill in staffing gaps.
Becoming a landlord for monthly furnished rental properties may not be the right move for everyone, but if you own apartments or houses near hospitals and universities and you have the money to invest in furnishing the space, it could be the perfect way to earn more money. If you still aren’t sure, take a look at other properties on furnished rental sites to see how yours stack up and how much you could charge per month. With the right location and marketing plan in place, you could cater to a growing market that is willing to pay more for the convenience and flexibility of furnished mid-term rentals.
Other articles you might be interested in:
Preparing Your Rental Property for Travel Nurses (opens in new tab)
How Professional Real Estate Photos Can Make All The Difference (opens in new tab)