{"id":185976,"date":"2025-12-08T10:46:29","date_gmt":"2025-12-08T17:46:29","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=185976"},"modified":"2025-12-08T10:46:32","modified_gmt":"2025-12-08T17:46:32","slug":"mid-term-rentals-have-a-bright-future-but-many-investors-are-spooked-by-the-practical-difficulties","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/mid-term-rentals-have-a-bright-future-but-many-investors-are-spooked-by-the-practical-difficulties","title":{"rendered":"Mid-Term Rentals Have a Bright Future\u2014But Many Investors are Spooked By the Practical Difficulties"},"content":{"rendered":"\n

This article is presented by <\/span>Connect Invest<\/span><\/a>.<\/span><\/em><\/p>\n\n\n\n

Mid-term rentals<\/span><\/a>\u2014fully furnished rentals with contracts <\/span>of anywhere between<\/span> 30 days <\/span>and nine<\/span> months\u2014were once seen as a very niche or experimental option for real estate investors.<\/span> A new report <\/span>is suggesting that<\/span> they are becoming <\/span>more and more<\/span> mainstream<\/span>, <\/span>and a great way to mitigate some of the risks <\/span>from<\/span> rising vacancies in the traditional rental sector.<\/span><\/p>\n\n\n\n

The <\/span>report<\/span><\/a>, put together by Landing, reveals several intriguing facts about how investors currently perceive mid-term rentals. <\/span>Most see them as having <\/span>serious<\/span> portfolio-expanding potential, with 93% of respondents saying they\u2019re actively seeking new revenue models<\/span>, <\/span>and 88% saying they would use mid-term rentals <\/span>as a way<\/span> to reduce the impact of vacancies.<\/span> <\/span><\/p>\n\n\n\n

At the same time, many investors perceive <\/span>major<\/span> barriers to entry into this segment of the rental market. Nearly half (44%) aren\u2019t <\/span>completely<\/span> certain<\/span> about sufficient demand levels for mid-term rentals, while around a third (38% and 33%, respectively) anticipate problems with logistics or sourcing furnishings. <\/span><\/p>\n\n\n\n

Mid-Term Rentals: High Initial Costs, Higher Rewards<\/span><\/h2>\n\n\n\n

Without a doubt, the often substantial investment into high-quality furnishings and appliances is daunting for an investor used to traditional rentals, which are typically leased out unfurnished. Essentially, a mid-term landlord will have to combine the know-how of an Airbnb host with the savvy of an investor. <\/span><\/p>\n\n\n\n

Mid-term homes typically attract <\/span>renters who are professionals<\/span>. <\/span>These types of rentals are very <\/span>popular with remote workers<\/span><\/a> and people <\/span>required to<\/span> travel <\/span>frequently<\/span> (think visiting academics, doctors, and nurses).<\/span> <\/span><\/p>\n\n\n\n

This category of guest expects a higher standard of accommodation, <\/span>which may include<\/span> a comfortable mattress, a high-end washer\/dryer combo, a branded coffee maker, etc. Basically, a mid-term renter wants what they\u2019d get from a five-star-rated Airbnb experience, but with the ability to call the place \u201chome\u201d for a few months. <\/span><\/p>\n\n\n\n

Mid-term landlords do <\/span>have<\/span> some competition from hotel chains like Marriott and Hilton <\/span>that<\/span> are beginning to roll out mid-term rental studios of their own.<\/span> However, what <\/span>the<\/span> hotel chains cannot provide is a home-like experience in a multifamily unit <\/span>grounded within<\/span> a local community.<\/span> That\u2019s where mid-term multifamily rentals have the edge: Someone renting an apartment for six months wants more of a homey, community-rooted experience in a beautiful neighborhood, as opposed to a slightly larger hotel room next to a roadside shopping plaza.<\/span><\/p>\n\n\n\n

The good news for investors is that care taken in location selection and attention to detail really pays off here: Mid-term renters, as per the Landing report, are prepared to pay a premium for the right combination of convenience, comfort, and aesthetics: we\u2019re talking $600-$800 more per month per unit compared to traditional rentals. <\/span><\/p>\n\n\n\n

Additionally, <\/span>in the manner of<\/span> Airbnb hosts, mid-term landlords must <\/span>sort out<\/span> the logistics of maintenance and cleaning between stays, often with<\/span> a <\/span>very tight <\/span>turnaround<\/span>.<\/span> This<\/span> typically means having a property manager on site or nearby. Poor logistics, where the transition between guests is not well-managed, leads to bad reviews and the home potentially standing vacant, which is even more costly for investors than vacancies in traditional units. <\/span><\/p>\n\n\n\n

Is a Mid-Term Rental Right for You?<\/span><\/h2>\n\n\n\n

Demand for mid-term rentals is <\/span>growing rapidly<\/span>, with an astonishing 94% increase <\/span>for<\/span> 30+ day bookings in the U.S. <\/span>year over year<\/span> in 2023, according to <\/span>Key Data<\/span><\/a>.<\/span> This rental market segment <\/span>is not yet oversaturated<\/span>. <\/span><\/p>\n\n\n\n

If you are prepared by carefully researching your mid-term location and <\/span>the heavy<\/span> initial investment in operational logistics and higher-quality furnishings, you will be rewarded with impressive <\/span>ROIs<\/span><\/a> and, in many cases, zero vacancy.<\/span> Rentals in this category that get everything right are often booked up continuously, providing a steady stream of income and improving your overall <\/span>cash flow<\/span><\/a>. <\/span><\/p>\n\n\n\n

There is one big but: If you do not have enough starting capital to create a competitive mid-term rental, it is best to stick to more traditional rentals or explore other real estate investing avenues. <\/span><\/p>\n\n\n\n

Where mid-term investors often fail is when they start <\/span>trying to cut<\/span> corners. That will cost you here in a way that just won\u2019t with a traditional rental. <\/span>A family settling in somewhere for five to 10 years will invest in their own comfortable mattress and might <\/span>just<\/span> replace the bathroom fixtures they dislike if it really matters.<\/span> A mid-term renter will not\u2014unmet expectations and perceived poor quality often lead to disputes, leases broken prematurely, and those dreaded bad reviews. <\/span><\/p>\n\n\n\n

How much money do you need <\/span>to successfully furnish and operate a mid-term rental<\/span>? Think in the ballpark of furnishing your own home, preferably on the more luxurious end of the spectrum of what you <\/span>are prepared<\/span> to pay. <\/span><\/p>\n\n\n\n

There\u2019s Another Way to Invest<\/span><\/h2>\n\n\n\n

If that sounds like it\u2019s too much right now, it probably is. Luckily, you do have other options, like <\/span>Connect Invest<\/span><\/a> short notes, which you can invest in with as little as $500. With investment durations of six, 12, or 24 months and interest yields of as high as 9%, you can experience the immediate financial growth enjoyed by mid-term rental investors\u2014just without the hefty initial cost for you.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

This article is presented by Connect Invest. Mid-term rentals\u2014fully furnished rentals with contracts of anywhere between 30 days and nine months\u2014were once seen as a very niche or experimental option […]<\/p>\n","protected":false},"author":613618,"featured_media":181435,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7376],"tags":[],"class_list":["post-185976","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-medium-term-rentals"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/185976","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/613618"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=185976"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/185976\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/181435"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=185976"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=185976"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=185976"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}