MTR vs. STR

Realtor · San Antonio, TX · Member since 2021 · 502 posts · 274 votes

1y

I start off all my rentals as STR to build up reviews and then covert them to midterm. Not sure how midterm does in other areas, but it has been an amazing strategy for me (allowing me to save money on PM and decreasing the turnover and potential issues with HOA or neighbors). If you can put the right systems in place and the market makes sense, I think it's an easy choice for most investors

[email protected]210-827-6020

Justin Brickman Realty4.9144 Reviews

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Madri Koppe

Interior Decorator · CA · Member since 2020 · 78 posts · 30 votes

1y

We're in the process of building and plan to do a MTR, we find it to be a happy middle ground where there's less turnaround but can still charge more than LTR. Each property is different so ultimately you need to look at the numbers and see what makes sense. If you aren't earning as much from STR then MTR might be the way to go.

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Sarah Rosko

Property Manager · Indianapolis, IN · Member since 2024 · 45 posts · 24 votes

1y

Hi there! I work for Brentwood Property Group and we manage MTRs and STRs. I see where you're coming from. MTRs tend to have lower nightly rates and deep cleans. One approach we've taken is implementing a move-in and move-out inspection (with photos) to limit wear and tear. This way the tenants will be held responsible for any damages. Our tenant base is mostly traveling healthcare professionals. These tenants tend to be reliable and respectful of the space—often more so than the varied guest pool with short-term rentals. While MTRs might not match STR revenue directly, they're more predictable with less frequent turnover, which can balance out in the long run.

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Julia Lyrberg

Lender · TX · Member since 2024 · 308 posts · 196 votes

1y

Hi Leon! Mid-term rentals can definitely be a bit of a trade-off. They bring more stability and less turnover than STRs, but the discounted rates and occasional deep clean can eat into profits. One thing that might help is building the cost of that deep clean into the lease or setting a minimum stay to offset expenses. Also, targeting traveling professionals or insurance clients for mid-term stays can sometimes yield higher rates than typical monthly renters. It’s all about finding that balance and experimenting with what works best in your market!

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Jonathan StyerBusiness Member

Real Estate Broker · Columbus, OH · Member since 2018 · 330 posts · 396 votes

1y

I think you need to go case by case on MTR vs. STR. it's so property specific. There are multiple factors to consider, but from what I'm reading, you're better off doing STR if you're good with more turns. It's a risk-reward proposition and for us here in Columbus, I see a lot of saturation with STR, but we have very high demand for MTR so most of the properties in our portfolio wind up being mid terms.

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Jimmy LieuBusiness Member

Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes

1y

Quote from @Leon Lee:

Hi BPers!

I have some short-term rentals, and occasionally, a few of these have turned into mid-term rentals when rented out for several months. I appreciate the ease of management that comes with mid-term rentals, but I have some concerns. For one, the rental income tends to be lower than with short-term stays due to the necessary discounts, yet we still face most of the usual costs, aside from savings on cleaning and supplies. Additionally, each deep clean after a mid-term stay costs around $300 or more, which almost negates the financial benefit of the mid-term rental model. Repairs after tenants move out also are significantly higher.

I'm curious about everyone's thoughts on the pros and cons of mid-term rentals versus short-term rentals. profit margin on STR is getting thinner, and I'm interested in exploring other strategies. I'd love to hear from those with more experience to see if my observations align with yours and if there are tips for managing costs or maximizing the benefits of mid-term rentals.

Thanks!

Lee

Hi Leon! The heavy cleaning and repair costs after longer stays are definitely pain points but I've seen my clients make it work by screening the tenants more carefully for MTRs, doing bi-monthly checks to catch issues early, and writing clear lease terms about maintaining the property. Happy to connect and answer any questions you may have.

[email protected]614-300-7535

Jimmy Lieu, Red 1 Realty4.9120 Reviews

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Jamie Banks

Real Estate Consultant · Reston, VA · Member since 2022 · 513 posts · 521 votes

1y

I really think that the biggest pros and cons depends on YOUR goals

I self manage my properties with the help of a VA and I like that I can be hands off now that my VA is trained. I know if we operated short term rentals I would need additional VAs plus it would be more headache for the team.

I've only operated 1 short term rental that I helped an owner convert to a midterm rental. I managed it for a few months and HATED it lol. With midterm rentals, there's a lot more work getting a tenant in the door but it's less work from the management side once someone moves in. The opposite is true for STRs.

MTRs have huge earning opportunities if you look into the B2B model. I've worked with government employees, families who have been displaced by fires, and other clients / employees who are my tenant but aren't financially responsible for the lease. Instead, a business (or goverment entity) is the payer of the lease. With this model I'm able to get a lot more than other MTR operators who are relying on Furnished Finder and Airbnb for bookings.

Being that I only operate MTRs, I price my fees to include this. For example, my cleaning fee on one property is $500, because that's what it cost for a deep clean between tenants. I pass this on to my tenants who understand that it takes a lot to clean a home after someone was there for month(s) at a time.

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Sylvia Santelli

Property Manager · Dallas, TX · Member since 2015 · 61 posts · 35 votes

1y

It also comes down to what kind of market you are in-- what do guests who come to town want? Most major metros can handle MTR only and STR only--- it's a strategy discussion. If you want to optimize you could identify the busy season and make that STR friendly and then the rest of the year block it for longer stays. I'm also team MTR.

You are mention the higher costs for MTR-- I would adjust the cleaning fee and add incidental insurance like Waivo to cover those costs. That should help significantly.

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MTR vs. STR

MTR vs. STR

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