If you are a landlord or a real estate investor, you might be wondering how to maximize your rental income and occupancy rate. You might be familiar with the traditional long-term rentals (leases that last for one year or more) and the short-term rentals (leases that last for less than one month). But have you considered investing mid-term rentals?
What are mid-term rentals?
Mid-term rentals are leases that last for less than one year but usually more than one month. They are also known as corporate housing or medium-term rentals. They are often used by businesses for their employees who are relocating or traveling for work, or by people who are working remotely. They include a lease agreement that defines the rights and obligations of both parties. They can be found in major cities all over the world and can offer benefits to both property owners and tenants.
What are the benefits of mid-term rentals as a Property Owner?
While short-term rentals can earn you more (think 2x traditional rent) mid-term rental income is still higher than traditional (1.5x), without the incessant turnover and unpredictable city regulations. Traditional rentals on the other hand (unfurnished/12-month lease), typically don’t yield the high rents that furnished properties do, and can actually be riskier in terms of evictions and squatters. Mid-term rentals are in the proverbial “sweet spot” because they provide property owners with higher rents than traditional, and affords them the lifestyle that comes with 3 or 4 turnovers per year.
Another benefit of mid-term rentals is that they attract a different type of tenant than short-term or long-term rentals. Traveling professionals like travel nurses, remote workers, digital nomads, and relocating families are the typical tenant you can expect when renting out your mid-term rental. These tenants need flexible furnished housing for about 3-4 months at a time, and typically make ideal tenants compared to vacation rental tenants. They are more likely to respect your property, pay rent on time, and cause fewer issues.
How to get started with mid-term rentals
If you are interested in managing a medium-term rental, there are a few things to consider before you list your property. First, you need to make sure that your property is furnished and equipped with basic amenities and utilities. You also need to check your local laws and regulations regarding medium-term rentals and obtain any necessary permits or licenses. You also need to set a competitive price for your rental that reflects the market demand and your expenses.
Next, you need to find a platform to list your property and attract tenants. There are several websites that specialize in medium-term rentals, such as nujib , Avail , Anyplace , and Kopa . These platforms allow you to create a profile for your property, upload photos and descriptions, set your availability and pricing, and communicate with potential tenants. You can also use these platforms to screen tenants, collect payments, and manage bookings.
Finally, you need to prepare your property for your tenants and provide them with a smooth check-in and check-out process. You should also maintain regular communication with your tenants and respond to any issues or requests promptly. You should also inspect your property after each tenant leaves and clean it thoroughly before the next one arrives.
Conclusion
Mid-term rentals are a great way to diversify your rental portfolio and increase your income and occupancy rate. They offer advantages over short-term and long-term rentals in terms of rent, turnover, regulations, and tenant quality. They also cater to a growing market of traveling professionals who need flexible furnished housing. If you want to get started with mid-term rentals, you need to prepare your property, list it on a suitable platform, and manage it effectively.
