Mid-Term Rentals: The Sweet Spot Strategy

# Mid-Term Rentals: The Sweet Spot Strategy

Mid-term rentals—properties leased for 30 to 180 days—occupy a strategic sweet spot in the rental market. They offer higher returns than long-term leases while requiring less operational intensity than nightly vacation rentals. For investors seeking stable, predictable income with premium returns, mid-term rentals deserve serious consideration.

This guide explores the mid-term rental strategy, breaking down why it works, who the tenants are, and how to position your property in this underserved market segment.

Table of Contents

1. [Quick Summary](#quick-summary) 2. [Defining Mid-Term Rentals](#defining-mid-term-rentals) 3. [Why Mid-Term Rentals Work](#why-mid-term-rentals-work) 4. [Target Tenant Segments](#target-tenant-segments) 5. [Market Selection and Positioning](#market-selection-and-positioning) 6. [Operational Model](#operational-model) 7. [How This Affects Investors](#how-this-affects-investors) 8. [How This Affects Operators and Sellers](#how-this-affects-operators-and-sellers) 9. [Mid-Term Rental Checklist](#mid-term-rental-checklist) 10. [Worked Example: MTR vs. STR vs. LTR](#worked-example-mtr-vs-str-vs-ltr) 11. [Common Mistakes to Avoid](#common-mistakes-to-avoid) 12. [FAQ](#faq)

Quick Summary

• **Mid-term rentals earn 40-60% more than long-term leases** while operating with 70% less turnover than STRs
• **Travel nurses represent the largest tenant segment**—8-13 week assignments align perfectly with mid-term stays
• **Regulations favor mid-term**—30+ day stays avoid most STR restrictions while maintaining furnished premium
• **Lower operational burden** means less management time and fewer expenses than nightly rentals
• **Hybrid strategies** allow seasonal pivots between STR and mid-term based on demand

Defining Mid-Term Rentals

What Qualifies as Mid-Term?

Mid-term rentals fall between traditional categories:

| Rental Type | Stay Duration | Typical Pricing | Management Intensity | |-------------|---------------|-----------------|---------------------| | Short-term (STR) | 1-29 nights | Nightly rate | High | | **Mid-term (MTR)** | **30-180 days** | **Monthly rate** | **Low-Medium** | | Long-term (LTR) | 12+ months | Monthly rate | Low |

The Sweet Spot Explained

Mid-term rentals capture advantages from both ends:

• **From Short-Term:**
• Premium pricing (furnished, flexible)
• No long-term tenant risk
• Retained property control
• Ability to adjust strategy

• **From Long-Term:**
• Stable, predictable income
• Lower turnover and expenses
• Simpler operations
• Less regulatory scrutiny

Regulatory Advantage

Most STR regulations target stays under 30 days:

• **STR permits:** Usually required for stays under 28-30 days
• **Transient occupancy tax:** Typically applies under 30 days
• **HOA restrictions:** Often limit short stays, not monthly
• **Zoning issues:** Usually concern nightly rentals

Mid-term rentals often operate where STRs are restricted or banned.

Why Mid-Term Rentals Work

Financial Comparison

How mid-term stacks up across financial metrics:

| Metric | STR | Mid-Term | Long-Term | |--------|-----|----------|-----------| | Gross Revenue | Highest | Medium-High | Lowest | | Turnover Costs | High | Low | Minimal | | Platform Fees | 12-15% | 3-10% | 0-5% | | Vacancy Risk | Medium | Low-Medium | Low | | Management Time | High | Low | Lowest | | Net Margins | 35-50% | 50-65% | 60-70% | | Net Revenue | Variable | Strong | Predictable |

The Mathematics of Mid-Term

``` STR SCENARIO Revenue: $175/night × 365 days × 65% occupancy Gross: $41,506 Cleaning (15 turns × $150): $2,250 Platform fees (14%): $5,811 Supplies/turnover costs: $2,000 Net from bookings: $31,445

MID-TERM SCENARIO Revenue: $3,000/month × 11 months Gross: $33,000 Cleaning (4 turns × $150): $600 Platform fees (8%): $2,640 Supplies: $400 Net from bookings: $29,360

STR nets $2,085 more BUT requires 15 turnovers vs 4 Time investment: STR 10+ hrs/week, MTR 2-3 hrs/week Risk-adjusted: Mid-term often wins. ```

Operational Simplicity

Mid-term requires less of everything:

• **Time Investment:**
• No daily guest messaging
• No weekly turnover coordination
• Less frequent pricing adjustments
• Fewer review management tasks

• **Expense Savings:**
• 70-80% fewer cleanings
• Lower platform fees
• Reduced supply costs
• Less maintenance from turnover

• **Lower Risk:**
• Better vetted tenants
• More stable income
• Fewer noise/neighbor issues
• Less review pressure

Target Tenant Segments

Travel Nurses (Largest Segment)

• **Profile:**
• 8-13 week assignments
• Reliable income and payment
• Often have pets
• Need laundry, WiFi, full kitchen
• Book 2-4 weeks ahead

**Market Size:** 1.7+ million travel nurse assignments annually

• **What They Want:**
• Proximity to hospital
• Parking
• Pet-friendly
• Washer/dryer in-unit
• Quiet for shift work

Corporate Relocations

• **Profile:**
• 1-3 months while finding permanent housing
• Company-paid or reimbursed
• Families common
• Need good school districts for families
• HR/relocation company coordinates

• **What They Want:**
• Family-friendly layout
• Good neighborhoods
• Near employment center
• Flexible end dates

Project-Based Workers

• **Profile:**
• Consultants, contractors, engineers
• Project duration (1-6 months)
• Expense account or company-paid
• Professional, low-maintenance
• Need reliable WiFi and workspace

• **What They Want:**
• Fast, stable internet
• Dedicated workspace
• Central location
• Easy access to project site

Insurance Displacement

• **Profile:**
• Homeowners displaced by damage
• 2-6 months typically
• Insurance company pays
• Often families with pets
• Urgent placement needs

• **What They Want:**
• Similar quality to their home
• Pet-friendly
• Immediate availability
• Flexible terms

Digital Nomads and Remote Workers

• **Profile:**
• Location-flexible professionals
• 1-3 month stays typical
• Work remotely full-time
• Value experience over space
• Book via Airbnb monthly or direct

• **What They Want:**
• Excellent WiFi
• Dedicated workspace
• Walkable neighborhood
• Social environment

Market Selection and Positioning

Best Markets for Mid-Term

• **Healthcare Hub Markets:**
• Cities with major hospital systems
• Travel nurse demand year-round
• Examples: Houston, Atlanta, Phoenix, Denver

• **Corporate/Tech Markets:**
• Business traveler demand
• Relocation traffic
• Examples: Austin, Seattle, Nashville, Raleigh

• **Hybrid Markets:**
• Tourism + business demand
• Seasonal STR, year-round mid-term
• Examples: San Diego, Miami, Charleston

Positioning Your Property

**Key Differentiators for Mid-Term:** 1. Proximity to demand drivers (hospitals, corporate campuses) 2. Pet-friendly policies 3. In-unit laundry 4. Reliable high-speed internet 5. Flexible lease terms 6. All-inclusive pricing

• **Listing Optimization:**
• Title: Include "Corporate Housing" or "Travel Nurse Welcome"
• Description: Emphasize work-from-home amenities
• Photos: Show workspace, kitchen, laundry
• Pricing: Display monthly rate prominently

Platform Selection

**Best Platforms for Mid-Term:**

| Platform | Best For | Fees | |----------|----------|------| | Furnished Finder | Travel nurses | $99/year | | CHBO | Corporate travelers | Subscription | | Airbnb (30+ days) | Mixed audience | 3-5% | | Landing | Flexible leasing | Commission | | Direct website | Repeat guests, referrals | 0% |

Operational Model

Lease Structure

• **Standard Mid-Term Terms:**
• Minimum stay: 30 days
• Maximum initial term: 6 months
• Extensions: Month-to-month
• Notice period: 30 days
• Early termination: 30 days + fee

• **Pricing Model:**
• All-inclusive monthly rate
• Include: utilities, WiFi, basic supplies
• Exclude: excessive usage, pet fees

Turnover Process

**Between-Guest Turnover (4-12 times/year):** 1. Move-out inspection 2. Deep clean ($150-300) 3. Linen refresh 4. Consumable restock 5. Minor repairs/touch-ups 6. Move-in preparation

**Time Required:** 2-4 hours per turnover

Ongoing Management

• **Weekly Tasks (~1 hour/week):**
• Respond to inquiries
• Monitor booking pipeline
• Address tenant questions
• Coordinate upcoming turnovers

• **Monthly Tasks:**
• Invoice review (if agency billing)
• Utility and expense tracking
• Listing updates and pricing review
• Preventive maintenance checks

How This Affects Investors

When evaluating mid-term rental opportunities:

• **Investment Thesis:**
• Lower volatility than STR
• Higher returns than LTR
• Regulatory moat in STR-restricted markets
• Scalable operations model

• **Due Diligence Focus:**
• Proximity to hospitals, corporate campuses
• Zoning allows 30+ day furnished rentals
• Competition density for mid-term segment
• Historical demand patterns (travel nurse data)

• **Valuation Considerations:**
• Mid-term income more predictable than STR
• Lower cap rates justified by stability
• Existing agency relationships add value

A marketplace connecting sellers with investors can identify properties positioned for mid-term success.

How This Affects Operators and Sellers

• **For Current Operators:**
• Mid-term reduces burnout vs. STR
• More predictable income for planning
• Lower operational costs
• Easier to scale portfolio

• **For Sellers:**
• Document mid-term booking history
• Highlight agency relationships
• Show occupancy stability
• Mid-term track record appeals to risk-conscious buyers

Mid-Term Rental Checklist

``` MID-TERM RENTAL CHECKLIST

PROPERTY POSITIONING [ ] Demand drivers identified (hospitals, employers) [ ] Proximity to demand drivers documented [ ] Pet policy established (pet-friendly recommended) [ ] In-unit laundry present or added [ ] High-speed internet installed and tested [ ] Workspace area designated [ ] Lease template prepared (30+ day terms)

LISTING AND MARKETING [ ] Furnished Finder listing active [ ] CHBO or similar platform (if budget allows) [ ] Airbnb with 30+ day minimum enabled [ ] "Corporate Housing" / "Travel Nurse" in titles [ ] Monthly rates prominently displayed [ ] Work-from-home amenities highlighted [ ] Property fact sheet created for B2B

PRICING STRUCTURE [ ] Monthly all-inclusive rate set [ ] Utilities included (capped if needed) [ ] WiFi and streaming included [ ] Cleaning included or separate [ ] Pet fee established [ ] Length discounts (60/90 day)

OPERATIONAL SETUP [ ] Lease template prepared [ ] Screening process established [ ] Move-in/move-out checklist created [ ] Vendor contacts (cleaning, maintenance) [ ] Welcome guide completed [ ] Guest communication templates

TENANT ACQUISITION [ ] Staffing agency outreach plan [ ] Hospital HR contact list [ ] Insurance adjuster contacts [ ] Relocation company outreach [ ] Facebook group posting schedule ```

Worked Example: MTR vs. STR vs. LTR

Property Details - 2BR/2BA condo near major hospital - Purchase price: $300,000 - Fully furnished ($25,000 investment) - Monthly fixed costs: $2,100

Strategy Comparison

**Long-Term Rental (LTR)** ``` Monthly rent: $1,800 Annual gross: $21,600 Vacancy (5%): -$1,080 Operating expenses: -$3,600 Net Operating Income: $16,920 Cap Rate: 5.6% Management: Minimal ```

**Short-Term Rental (STR)** ``` ADR: $165 Occupancy: 62% Annual gross: $37,360 Cleaning (22 turnovers): -$3,300 Platform fees (14%): -$5,230 Operating expenses: -$6,400 Net Operating Income: $22,430 Cap Rate: 7.5% Management: 10+ hours/week ```

**Mid-Term Rental (MTR)** ``` Monthly rate: $2,800 Occupancy: 85% (10.2 months) Annual gross: $28,560 Cleaning (5 turnovers): -$750 Platform fees (6%): -$1,714 Operating expenses: -$4,200 Net Operating Income: $21,896 Cap Rate: 7.3% Management: 2-3 hours/week ```

Analysis

| Metric | LTR | STR | MTR | |--------|-----|-----|-----| | Net Revenue | $16,920 | $22,430 | $21,896 | | Cap Rate | 5.6% | 7.5% | 7.3% | | Management Hours | 2/month | 40+/month | 10/month | | Turnovers/Year | 1 | 22 | 5 | | Revenue Stability | High | Low | Medium-High | | Regulatory Risk | None | High | Low |

**Mid-term captures 98% of STR revenue at 25% of the management effort.**

Common Mistakes to Avoid

1. **Underpricing mid-term:** Monthly rates should reflect furnished premium and flexibility value, not long-term rental rates.

2. **Ignoring travel nurse segment:** This is the largest mid-term market. If near hospitals, target them specifically.

3. **Missing platform opportunities:** Furnished Finder alone generates significant travel nurse demand for $99/year.

4. **Not offering pet-friendly:** Many mid-term tenants have pets. Missing this segment costs bookings.

5. **Complicated pricing:** Corporate bookers want one monthly number. All-inclusive simplifies decisions.

6. **Too-short minimum stays:** 30 days minimum filters for quality mid-term tenants. Lower minimums attract STR guests.

7. **Neglecting workspace amenities:** Remote workers and travel nurses need reliable WiFi and a place to work.

FAQ

What's the minimum stay to qualify as mid-term?

30 days is the standard threshold. This duration typically avoids STR regulations, transient occupancy taxes, and most HOA restrictions while capturing the furnished rental premium.

How do mid-term rates compare to short-term?

Mid-term monthly rates are typically 40-60% lower than equivalent STR revenue, but higher net margins due to fewer turnovers, lower fees, and reduced management costs.

Can I switch between STR and mid-term seasonally?

Yes, this hybrid strategy is common. Use STR during peak vacation seasons (higher rates) and mid-term during slower periods (guaranteed occupancy). Adjust minimum stays in your calendar.

How do I find travel nurse tenants?

List on Furnished Finder ($99/year) and post in travel nurse Facebook groups. Reach out to staffing agencies directly. Mention nearby hospital names in your listings.

What amenities matter most for mid-term?

Top priorities: In-unit washer/dryer, fast reliable WiFi, full kitchen, comfortable workspace, and pet-friendly policy. These outweigh luxury amenities for the mid-term audience.

Is mid-term allowed in STR-restricted areas?

Usually, yes. Most STR restrictions target stays under 28-30 days. Monthly furnished rentals are typically treated like traditional rentals. Always verify local ordinances.

How do I price mid-term competitively?

Research comparable mid-term listings on Furnished Finder and Airbnb (monthly view). Price 10-20% above long-term rental rates but 40-50% below equivalent STR potential.

What lease terms should I use for mid-term?

30-day minimum with month-to-month extensions after initial term. Include 30-day termination notice requirement and early termination fee (typically one month's rent) for tenant flexibility.

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*Looking for properties with mid-term rental potential? Browse investment-ready listings on a marketplace connecting sellers with investors, or list your property to reach qualified buyers.*

• **Internal Links:**
• [How Investors Find Corporate Tenants Fast](/blog/find-corporate-tenants-fast)
• [How Corporate Leases Work for Landlords](/blog/corporate-leases-landlords)
• [Pricing Furnished Rentals for Maximum Profit](/blog/pricing-furnished-rentals-maximum-profit)
• [How to Reduce Vacancy in Furnished Rentals](/blog/reduce-vacancy-furnished-rentals)

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*Consult a professional for your specific situation.*