What if you could invest in a rental property that attracts high-paying tenants, avoids the red tape of short-term rentals, and minimizes wear and tear—all while generating steady cash flow?
That’s what a mid-term rental could mean for your portfolio. Mid-term rentals attract high-quality tenants, bypass short-term rental restrictions, and provide steady income.
As rental trends shift, investors turn to mid-term stays for flexibility and higher returns.
Mid-term rentals have experienced significant growth, with 30+ day bookings increasing by 94% year-over-year and the average stay extending to 55 days.
Remote work and flexible living trends are one factor driving mid-term rental demand. They also address an in-demand niche in the housing market, catering to various professionals who require accommodations that make short-term options too expensive or unlivable.
But what sets mid-term rentals apart, and are they the right investment for you?
In this article, we’ll expand on the definition of mid-term rentals, lay out their distinct advantages and potential challenges, and explain the essential considerations before you commit to this investment path.
Start your application with Park Place FinanceWhat is a mid-term rental?
A mid-term rental is a fully furnished rental property leased for one to six months.
Unlike short-term rentals, which cater to vacationers and weekend travelers, mid-term rentals attract tenants who need temporary housing for work, relocation, or lifestyle flexibility.
Common tenants for mid-term rentals:
- Traveling professionals: Nurses, doctors, and corporate employees on temporary assignments
- Remote workers and digital nomads: Individuals working from anywhere who prefer stability over hotels
- Relocating families: People moving to a new city who need temporary housing before settling permanently
Benefits of investing in a mid-term rental
Investing in a mid-term rental can provide higher returns, lower turnover, and regulatory advantages over other rental models.
1. Higher rental income than long-term leases
Since mid-term rentals a
re furnished and offer flexibility, landlords can typically charge higher monthly rates than standard long-term leases. The premium covers furnishings, convenience, and included utilities.
2. Consistent occupancy compared to short-term rentals
Unlike vacation rentals, which experience off-season vacancies, mid-term rentals attract professionals and relocate individuals year-round, ensuring steadier occupancy rates.
3. Lower tenant turnover than short-term rentals
With leases lasting one to six months, mid-term tenants stay longer than vacationers, reducing the frequency of cleaning, maintenance, and administrative work.
4. Less wear and tear than long-term rentals
Mid-term tenants cause less wear than full-time residents, and professionals are generally more responsible than vacation renters.
5. Avoids strict short-term rental regulations
Due to housing shortages and local laws, many cities have restrictions or bans on short-term rentals (30 days or less).
Since mid-term rentals typically exceed one-month stays, they bypass many of these restrictions, making them a legally safer investment strategy.
Challenges of mid-term rentals
Despite their advantages, mid-term rentals come with unique challenges investors should consider.
1. Furnishing and maintenance costs
Unlike long-term rentals, mid-term properties must be fully furnished and equipped with household essentials like kitchenware, linens, and utilities. They require a higher upfront investment and ongoing upkeep.
2. Finding tenants takes effort
Mid-term rentals require active marketing to attract tenants.
Unlike year-long leases, mid-term properties need regular tenant sourcing, often through corporate housing platforms or specialized listing sites.
3. Potential for vacancy gaps
While mid-term rentals experience fewer vacancies than short-term rentals, gaps between tenants can still occur.
Long-term leases guarantee a year or more of rent. Mid-term rentals require proactive tenant management.
4. Legal and tax implications
Before investing in a mid-term rental, it’s imperative to research local zoning laws, tax obligations, and insurance requirements, as some cities and homeowners associations (HOAs) regulate furnished rentals and lease durations.
Additionally, the IRS requires that all rental income be reported, but landlords may be eligible to deduct certain expenses.
Understanding these legal and tax implications can help investors make informed financial decisions.
How to determine if a mid-term rental is a good investment
Evaluate these factors to determine if mid-term rentals fit your investment strategy.
Location and demand
Successful mid-term rentals thrive in areas with strong tenant demand.
Ideal locations include:
- Cities with major hospitals: Travel nurses and healthcare workers need temporary housing
- Business hubs with corporate relocations: Professionals on temporary work assignments
- University towns: Graduate students and visiting professors needing short-term housing
- Military bases: Service members and their families relocating frequently
Research local demand before investing to ensure consistent tenant interest.
Property type and layout
Not all properties are ideal for mid-term rentals.
Furnished one- to three-bedroom homes or apartments are suitable for professionals and small families.
Private units with amenities such as a washer/dryer, parking, and a well-equipped kitchen increase demand.
Many professionals desire safe and accessible locations. The property’s proximity to workplaces, hospitals, and public transit attracts tenants.
Competitive pricing strategy
Mid-term rental pricing falls between short-term nightly rates and long-term leases—research comparable listings in the area to determine a competitive rate.
Marketing and tenant sourcing
Unlike long-term rentals, mid-term rentals require strategic marketing.
Effective marketing platforms include:
- Furnished Finder: Popular with travel nurses and medical professionals.
- Corporate housing websites: Platforms like Blueground or Landing cater to business travelers.
- Airbnb (for extended stays): Some landlords list mid-term rentals with 30+ day minimum stays.
- Local networking: Partnering with hospitals, corporations, and universities can generate direct tenant leads.
Legal and financial considerations
Check your local zoning laws before converting a property into a mid-term rental. Some cities regulate furnished rentals and lease lengths.
Additionally, research tax implications. Mid-term rentals may be taxed differently than long-term leases. Ensure your insurance policy covers furnished rentals and tenant liability.
What is a mid-term rental, and is it right for you?
Mid-term rentals bridge the gap between short-term vacation stays and long-term leases, offering higher rental income, stable occupancy, and reduced tenant turnover.
Success depends on proper planning, including furnishings, pricing, tenant sourcing, and legal compliance.
Investors in high-demand areas with a steady flow of traveling professionals, relocating families, and digital nomads may find mid-term rentals a profitable addition to their portfolios.
Stay ahead of the market with a profitable mid-term rental. Park Place Finance helps real estate investors move fast with competitive, hard money loans designed for growth.