General Manager, Publishing at BiggerPockets · Denver, CO · Member since 2017 · 459 posts · 642 votes
Hello STR investors! I'm wondering how many of you invest in a tried and true short-term rental vs. a mid-term rental? If you do the mid-term thing, why? How did you first learn about it?
Real Estate Agent · Grass Valley, CA · Member since 2017 · 185 posts · 198 votes
4y
I personally love mid term rentals. They are my favorite. I would say 1/2 of my bookings are mid term. I self manage so it is way less work for me. and I'm finding many times just as lucrative. I just rented 4-5 months to 2 cal-fire pilots who are fighting wild fires in California. There are two of them, but only one at a time. 12 days on, 12 days off - They work 9am - 9pm - perfect tenant. I also rent to many people in transition - buying a house, insurance issues - where trees have fallen on their homes or fires. Traveling nurses and doctors - so forth and so on. I make them all sign a contract and collect security deposits and cleaning. I think most of them find me on airbnb and vrbo. I allow pets which gives me an advantage as many do not.
Rental Property Investor · Mississippi Gulf Coast · Member since 2022 · 205 posts · 168 votes
4y
My property management company offers both long term and short term rentals. Often they receive requests to rent the short term rentals for three or four months. What they do is to rent it for 30 days per reservation. The guest must reserve and pay for the 30 days then do it again and again. They do not have a discount beyond 30 days so it does not make a difference if they book multiple stays rather than one long stay which is not permitted.
These longer stays are usually company sponsored arrangements where they have workers in the are for a project. The company pays for the stays so there is no issue with legal tenancy etc. Also, for a 30 day stay, they have to pay for a mid stay cleaning. This insures that the property is kept in good condition.
I do not prefer these stays because they are at a discounted rate and in the main season they can hold you back from greater income.
Real Estate Agent · Boulder, CO · Member since 2015 · 284 posts · 226 votes
3y
@Katie Miller sorry I'm seeing this late. Bruce is saying that he never wants to rent over 30 days, which takes away his ability to do MTR or LTR. For some that is fine but I think it is incredibly limiting. I have been an investor for 10 years and have never dealt with an eviction (I own in 4 states, some being more tenant friendly). I also have a friend who manages over 100 MTRs since 2017 and has only dealt with 1 eviction. This just goes back to solid tenant screening and then acting quickly if you have to evict. Its not the end of the world, just a hassle.
Real Estate Consultant · Denver, CO · Member since 2021 · 661 posts · 389 votes
3y
@Katie Miller Personally, I prefer the MTRs/LTRs for my own investments over STRs. Less tenant turnover, less concern about HOAs that limit or block STRs.
Rental Property Investor · Mississippi Gulf Coast · Member since 2022 · 205 posts · 168 votes
3y
There are only short-term, under 30 days, and long-term over 30 days. Most local and state government regulations address these two situations. There have been a lot of squatters recently and you will want to be sure that you have our business in order.
If you want to allow a stay over 30 days, do not use the STR agreement. Use a lease agreement either month to month or a termination date over 30 days. You can call allowing someone to stay for six months mid-term but the law calls that an LTR.
It's all about your intention. If you have to defend yourself in court you should have a LTR lease if it's over 30 days. Also, you need a set of rules for over 30 days that addresses some of the local regulations. If you allow someone to stay over 30 days there are rules on deposits, cleaning fees, etc. that you must follow.
If the property is in a very liberal area with lots of rent restrictions even rate controls you could be in trouble without checking with the city first.
I have allowed guests to stay for longer than 30 days but not longer than 30 days on the same ABB reservation. That has to terminate at 30 days and they have to sign a lease agreement for the remainder.
One of the popular reasons on the Mississippi Gulf Coast where I work is military members attend schools for many months at a time. They prefer to rent off-base. You can find a good lease online or after visiting an attorney. If your property is located in a liberal city or suburb, I recommend you see an attorney before moving forward.