Short v. Mid term?

Question

Hi all,

I am totally green, haven't even purchased a property yet.  I'm looking to partner with my dad on my first property.

I'm interested in investing in short and/or mid-term rentals in my local area. I've talked to some other investors, and I believe there is a market for it here, and I've also worked in airbnb cleaning and so I am somewhat familiar with local expectations.

I'd love to hear from you guys on what are some of the key differences between short and mid-term rentals and what some of the pros/cons are of each, so I can know more about what to look out for in underwriting.

Thanks!

Carolyn Fuller · Answer

I do both STR and MTR. Since my rentals are half way between Harvard and M.I.T., I started out renting mid term to visiting scholars but there are no visiting scholars during the summer. So I did STR during the summer.

MTRs are much like LTRs in that they produce passive income.  STRs are a lot more work. We never go on vacation during the time we have units on the STR market. We not only go out of town when our rentals are rented mid term, but our mid term tenants, for a small stipend, often take care of our properties when we are out of town.

Divin Kanyama · Answer

Welcome to the journey, @Natalie Theobald . One thing I'd encourage is not getting too attached to either strategy before you've underwritten a few deals. The best approach often depends on the property, the market, and your goals.

In general, short-term rentals can generate higher revenue, but they're usually more management-intensive and can be more sensitive to seasonality, regulations, and market shifts. Mid-term rentals often produce slightly lower gross income, but they can offer more stable occupancy, less turnover, and fewer operational headaches.

Since you've already worked in Airbnb cleaning, you have an advantage that many new investors don't. You've seen firsthand what guests expect and some of the operational realities behind the numbers.

As you analyze deals, I'd focus on more than just projected revenue. Pay close attention to occupancy assumptions, turnover costs, furnishing expenses, cleaning, utilities, and local regulations. Sometimes the property with the lower projected income ends up producing the better return because it's simpler and more predictable to operate.

The good news is that you're asking the right questions before buying. That mindset alone will save you from a lot of expensive lessons.

Jules Aton · Answer

Midterm sounds nice but I worry about being stuck with a difficult tenant. Also being on the hook for the utilities would work me into a froth if I ended up with a 68 degree 24/7 AC person for the entire summer.

Short v. Mid term?

Short v. Mid term?

Most Popular Reply

3 Replies