Are Medium-Term Rentals Becoming the Sweet Spot Between Long-Term and STRs?

Question

Hey everyone,

I’ve been noticing more investors shifting toward medium-term rentals (MTRs) — especially with cities tightening STR regulations and longer leases getting squeezed by slower rent growth.

It seems like the 3–6 month rental space (travel nurses, relocations, contract workers) is offering a nice balance of cash flow and stability — without the constant turnover of short-term stays.

For those already in this space:

• How are you structuring leases (furnished vs. semi-furnished)?
• What tenant types have been most consistent for you?
• Have you had better luck self-managing or using specialized MTR management?

How are you structuring leases (furnished vs. semi-furnished)?

What tenant types have been most consistent for you?

Have you had better luck self-managing or using specialized MTR management?

I’m curious how others are approaching this niche in 2025 — especially with housing supply tightening in many markets.

Nana Hong · Answer

Hi @Andy Gonzales Mid-term rentals are a lucrative niche. They offer higher cash flow than long-term rentals (LTR) and require less hands-on management than short-term rentals (STR). The key is ensuring tenants' move-in and move-out dates align to prevent long vacancies. Over the past year, I've successfully managed both STR and MTR together. However, it's important not to extend STR dates too far into the future so you can accommodate MTR inquiries when they arise.

Denis Um · Answer

Hey Andy,

I own 7 MTRs in New Jersey and with the value of property and the rates at what they are it has been great to be able to cashflow. Most towns here do not allow for STR but we do fully furnished apartments.

We have a variety of types of guests. Travel medical professionals were our target when we first started but we are seeing a lot of non-medical workers that come to our area. Other types of guests are people relocating to the area, people doing renovations and Interns.

I am also a partner in a company that manages over 20 units in Northern New Jersey. However, I think it is very doable to manage on your own if you have a few units.

Claudia Morato · Answer

Hi Cole, I am also interested in MTR. I have a STR in Indianapolis and I am thinking to have a hybrid approach next year allowing my furnished STR property to also be booked for MTR. I have a 3 bedroom home. Do you have some tips on where to list the property, lease agreements, identity checks?

Denver McClure · Answer

Hey @Andy Gonzales, I agree, MTR has been much better and more stable for my portfolio these last few years. I structure leases as furnished, that way I can flex to STR during peak seasons and not have to move any furniture to storage. For my MTRs in the city (Dallas), travel nurses, PTs, and employees on contract with large companies (AT&T) have been booking it back to back for years. I do have a lakehouse 2 hours outside of the city, and that is rented to engineers that work on wind farms in west Texas. It's been a great solution for the cooler months that aren't a peak STR season.

Self manage is the way to go with MTRs. It's very hands off and you can be proactive on finding new tenants while the unit is already rented. Happy to chat sometime if needed.