Are mid-term rentals outperforming traditional rentals in your market? If so, how?

Real Estate Broker · Cleveland, OH · Member since 2016 · 146 posts · 110 votes

I’ve been seeing more investors shift toward mid-term rentals for travel nurses, corporate housing, and temporary relocation stays because of the balance between cash flow and lower turnover compared to short-term rentals.
For those currently operating mid-term rentals, what's been your biggest advantage or challenge so far? Are you seeing a shift from LTR / STR to MTR lately? If so, what do you feel is the cause of that change? Is it the economy or something else?

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Stephen Delahoussaye

Real Estate Broker · Nashville, TN · Member since 2022 · 163 posts · 87 votes

4mo

Great question. I manage LTR doors in Nashville and also work the brokerage side so I see this from multiple angles.

In Nashville the MTR market has definitely grown, especially with the healthcare corridor. We have a ton of travel nurses rotating through Vanderbilt, TriStar, and the surrounding hospital systems. There's also a steady stream of corporate relocations with all the companies that have moved here over the last few years. So the demand side is real.

That said, I still think LTR is the backbone for most investors and here's why. The consistency is hard to beat. A solid long term tenant paying market rent with a good lease in place gives you predictable cash flow without the turnover costs and management intensity of MTR. Every time an MTR tenant rotates out you're re-furnishing, re-cleaning, re-marketing, and eating vacancy days. Those costs add up fast and can eat into the premium rent you're charging.

Where I see MTR making sense in Nashville is specific situations. Units near hospitals or major employers with documented rotation programs. Furnished units in walkable neighborhoods like East Nashville or Germantown where corporate tenants want a landing pad. Properties that are already struggling to hit market rent on a 12 month lease but could command a premium furnished for 3 to 6 months.

The biggest challenge from the management side is that MTR falls in this awkward middle ground. It needs more attention than a standard LTR but doesn't generate the per night revenue of a true STR. You really need to nail your systems if you're going to scale it. For most investors I work with, a well managed LTR portfolio still wins on risk adjusted returns over time.

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Stephen Delahoussaye
Real Estate Broker · Nashville, TN · Member since 2022 · 163 posts · 87 votes
4mo
Great question. I manage LTR doors in Nashville and also work the brokerage side so I see this from multiple angles.
In Nashville the MTR market has definitely grown, especially with the healthcare corridor. We have a ton of travel nurses rotating through Vanderbilt, TriStar, and the surrounding hospital systems. There's also a steady stream of corporate relocations with all the companies that have moved here over the last few years. So the demand side is real.
That said, I still think LTR is the backbone for most investors and here's why. The consistency is hard to beat. A solid long term tenant paying market rent with a good lease in place gives you predictable cash flow without the turnover costs and management intensity of MTR. Every time an MTR tenant rotates out you're re-furnishing, re-cleaning, re-marketing, and eating vacancy days. Those costs add up fast and can eat into the premium rent you're charging.
Where I see MTR making sense in Nashville is specific situations. Units near hospitals or major employers with documented rotation programs. Furnished units in walkable neighborhoods like East Nashville or Germantown where corporate tenants want a landing pad. Properties that are already struggling to hit market rent on a 12 month lease but could command a premium furnished for 3 to 6 months.
The biggest challenge from the management side is that MTR falls in this awkward middle ground. It needs more attention than a standard LTR but doesn't generate the per night revenue of a true STR. You really need to nail your systems if you're going to scale it. For most investors I work with, a well managed LTR portfolio still wins on risk adjusted returns over time.
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- R. Elle Berry
  OP
  Real Estate Broker · Cleveland, OH · Member since 2016 · 146 posts · 110 votes
  4mo
  Quote from @Stephen Delahoussaye:
  
  Great question. I manage LTR doors in Nashville and also work the brokerage side so I see this from multiple angles.
  In Nashville the MTR market has definitely grown, especially with the healthcare corridor. We have a ton of travel nurses rotating through Vanderbilt, TriStar, and the surrounding hospital systems. There's also a steady stream of corporate relocations with all the companies that have moved here over the last few years. So the demand side is real.
  That said, I still think LTR is the backbone for most investors and here's why. The consistency is hard to beat. A solid long term tenant paying market rent with a good lease in place gives you predictable cash flow without the turnover costs and management intensity of MTR. Every time an MTR tenant rotates out you're re-furnishing, re-cleaning, re-marketing, and eating vacancy days. Those costs add up fast and can eat into the premium rent you're charging.
  Where I see MTR making sense in Nashville is specific situations. Units near hospitals or major employers with documented rotation programs. Furnished units in walkable neighborhoods like East Nashville or Germantown where corporate tenants want a landing pad. Properties that are already struggling to hit market rent on a 12 month lease but could command a premium furnished for 3 to 6 months.
  Stephen, I think you made a great point about MTR sitting in that middle ground between STR and traditional LTR. A lot of investors underestimate how operationally intensive MTR can become once you start factoring in furnishing, turnovers, cleaning coordination, utilities, vacancy gaps, and constant marketing.
  
  I also agree that LTR is still the backbone for many investors because the predictability and lower turnover can create more stable long-term cash flow, especially when properly managed.
  
  In Cleveland, (I work both Ohio and Florida markets), I'm seeing MTR perform best in very specific situations as well, primarily near hospitals, corporate corridors, and areas attracting traveling professionals. I've also noticed MTR works well for investors who own duplexes, smaller multifamily, or properties in locations where STR restrictions or seasonality make Airbnb less consistent.
  
  One advantage I think MTR has in markets like Orlando / Kissimmee is flexibility. Some investors are using MTR as a strategy to increase cash flow temporarily while still keeping the property in a more residential-style operational model versus a full hospitality business.
  
  That said, I completely agree that systems are everything. Without strong operations, turnovers and maintenance coordination can quickly eat into profits. Investors often focus heavily on gross revenue projections but underestimate the management side of the business.
  
  I’d also agree that on a risk-adjusted basis, a strong LTR portfolio can still outperform over time simply because of stability and lower operational intensity.
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Ralph Pombo
Member since 2020 · 101 posts · 34 votes
4mo
We are moving over to the co-living model. I have changed three homes to MTR and will be changing more where the numbers and regulation work out. There are at least 7 guest types that I have defined. We currently have one home for Silver Living (55+), one for workforce housing, and one that is a sober living.
I wrote a white paper on the 7 guest types that I have identified if you are interested. These are the main options and any of these increase our gross by a minimum of 50% and can more than double your gross depending on how you set it up.
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- R. Elle Berry
  OP
  Real Estate Broker · Cleveland, OH · Member since 2016 · 146 posts · 110 votes
  4mo
  Quote from @Ralph Pombo:
  We are moving over to the co-living model. I have changed three homes to MTR and will be changing more where the numbers and regulation work out. There are at least 7 guest types that I have defined. We currently have one home for Silver Living (55+), one for workforce housing, and one that is a sober living.
  I wrote a white paper on the 7 guest types that I have identified if you are interested. These are the main options and any of these increase our gross by a minimum of 50% and can more than double your gross depending on how you set it up.
  
  Ralph, my apologies for the delay. This is an interesting approach. I think many investors focus only on STR vs. LTR, while niche housing models like workforce, 55+, and sober living often get overlooked. The higher revenue potential is attractive, but operator experience and local regulations seem to be the key factors in making the numbers work. Thanks for sharing.
  1 Reply
Kenneth GarrettPro Member
Investor · Florida Panhandle/Illinois · Member since 2016 · 4k+ posts · 3k+ votes
4mo
@R. Elle Berry
I have adjusted to MTR with new acquisitions. These properties are near military bases where I can pick up TDY training for months at a time. Last few have been 6 month stays and the per diem rate exceeds the LTR significantly even with vacancy.
Property is generally left in great condition. A lot less work than STR and the income difference is not that significant and way less wear and tear.
1 Reply
- R. Elle Berry
  OP
  Real Estate Broker · Cleveland, OH · Member since 2016 · 146 posts · 110 votes
  4mo
  Quote from @Kenneth Garrett:
  
  @R. Elle Berry
  I have adjusted to MTR with new acquisitions. These properties are near military bases where I can pick up TDY training for months at a time. Last few have been 6 month stays and the per diem rate exceeds the LTR significantly even with vacancy.
  Property is generally left in great condition. A lot less work than STR and the income difference is not that significant and way less wear and tear.
  Kenneth, I definitely agree with your perspective, especially regarding the reduced wear and tear and more consistent payment history. That has been my experience as well with many MTR guests compared to LTR tenants.
  
  I also think military markets create a very strong niche for MTR because the demand is often more stable and predictable with TDY assignments, contractors, medical professionals, and relocation housing. Longer 3–6 month stays really help reduce turnover frequency while still allowing owners to achieve higher rental income than traditional LTRs.
  
  One thing I’ve noticed is that MTR tends to attract a different type of occupant overall. Many traveling professionals are working long hours, are not hosting large gatherings, and often treat the property more like temporary housing versus a vacation rental. That alone can significantly reduce operational stress and property deterioration.
  
  I completely agree that MTR can be a great middle ground, higher revenue potential than LTR without the constant turnover and management intensity of STR. In the right market and near the right demand, the model can perform very well when properly managed. Great response, thank you.
  
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Rosston Smith
Investor · Warner Robins, GA · Member since 2015 · 1k+ posts · 490 votes
4mo
Quote from @R. Elle Berry:

I’ve been seeing more investors shift toward mid-term rentals for travel nurses, corporate housing, and temporary relocation stays because of the balance between cash flow and lower turnover compared to short-term rentals.
For those currently operating mid-term rentals, what's been your biggest advantage or challenge so far? Are you seeing a shift from LTR / STR to MTR lately? If so, what do you feel is the cause of that change? Is it the economy or something else?

STR's can still make more, however that gap is closing with the advantage of minimal vacancy risk and easier management during the stay. We're also able to charge STR equivalent rates on a MTR basis depending on the guest-situation. MTR's are growing stronger in our markets and performing well.
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- R. Elle Berry
  OP
  Real Estate Broker · Cleveland, OH · Member since 2016 · 146 posts · 110 votes
  4mo
  Quote from @Rosston Smith:
  
  Quote from @R. Elle Berry:
  
  I’ve been seeing more investors shift toward mid-term rentals for travel nurses, corporate housing, and temporary relocation stays because of the balance between cash flow and lower turnover compared to short-term rentals.
  For those currently operating mid-term rentals, what's been your biggest advantage or challenge so far? Are you seeing a shift from LTR / STR to MTR lately? If so, what do you feel is the cause of that change? Is it the economy or something else?
  
  STR's can still make more, however that gap is closing with the advantage of minimal vacancy risk and easier management during the stay. We're also able to charge STR equivalent rates on a MTR basis depending on the guest-situation. MTR's are growing stronger in our markets and performing well.
  
  Rosston, I definitely agree with your perspective. I think one of the biggest advantages MTR has right now is that it still allows investors to achieve premium rental rates while significantly reducing some of the operational intensity and vacancy risks associated with STR.
  
  I've also noticed the gap between STR and MTR revenue narrowing in certain markets, especially when the property is positioned correctly and targeting the right guest profile. In some situations, owners are achieving STR level monthly revenue through MTR without the constant check-ins and turnover frequency.
  
  The easier management during occupancy is a major factor as well. Longer stays typically create more predictable operations, lower turnover costs, and less wear and tear compared to vacation-style short-term rentals.
  
  I also think guest type matters tremendously. Corporate travelers, medical professionals, relocation clients, insurance placements, and military housing tend to treat the property very differently than traditional vacation guests but in Orlando/Kissimmee the vacation guests are well behave.
  
  Overall, I agree that MTR is becoming a much stronger asset class in many markets, especially for investors looking for a balance between cash flow, operational stability, and lower vacancy risk.
  
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Hoshang Hafizi
San Antonio, TX · Member since 2022 · 26 posts · 15 votes
4mo
Most of the replies here are about whether MTR is growing. The part I'd dig into is how would you know it's outperforming. I measure that differently than just looking at rent.

It is not solely about gross rent. On my furnished unit MTR does beat the long-term number but a good margin. But the gap looks bigger on paper than it is. You have to net out the costs a long-term lease never carries. Furnishing, spread over a couple years. Utilities and internet, on me. A turnover every three to nine months instead of once a year. Re-marketing time. And the vacancy gaps between stays. Once those land, the premium shrinks to a thinner net edge. Still real, just smaller than the headline.

My reason for MTR over LTR was that I already had it furnished. So now I have the optionality. I can move the same unit between MTR and long-term as demand shifts, the place also comes back in much better shape than an STR, with a fraction of the wear, but gives me enough time to fix/clean things between tenants.

On the shift, I think it's real, but not mainly the economy. It's STR saturation and tighter short-term rules pushing operators down a tier into MTR. And the demand doesn't ride tourism. Healthcare, relocation, insurance displacement, corporate. That base is stickier than a nightly calendar.
1 Reply
- R. Elle Berry
  OP
  Real Estate Broker · Cleveland, OH · Member since 2016 · 146 posts · 110 votes
  4mo
  Quote from @Hoshang Hafizi:
  
  Most of the replies here are about whether MTR is growing. The part I'd dig into is how would you know it's outperforming. I measure that differently than just looking at rent.
  
  It is not solely about gross rent. On my furnished unit MTR does beat the long-term number but a good margin. But the gap looks bigger on paper than it is. You have to net out the costs a long-term lease never carries. Furnishing, spread over a couple years. Utilities and internet, on me. A turnover every three to nine months instead of once a year. Re-marketing time. And the vacancy gaps between stays. Once those land, the premium shrinks to a thinner net edge. Still real, just smaller than the headline.
  
  My reason for MTR over LTR was that I already had it furnished. So now I have the optionality. I can move the same unit between MTR and long-term as demand shifts, the place also comes back in much better shape than an STR, with a fraction of the wear, but gives me enough time to fix/clean things between tenants.
  
  On the shift, I think it's real, but not mainly the economy. It's STR saturation and tighter short-term rules pushing operators down a tier into MTR. And the demand doesn't ride tourism. Healthcare, relocation, insurance displacement, corporate. That base is stickier than a nightly calendar.
  
  Hoshang, my apologies for the delay. I think you’re right not to solely base it on rent.
  
  The higher gross rent from MTR can look great on paper, but the real comparison is net income after furnishings, utilities, internet, turnover costs, vacancy gaps, and remarketing. That’s where the difference between MTR and LTR often narrows.
  
  I also agree that the flexibility of being able to move between MTR and LTR as demand shifts is a major advantage. Great point and a much more realistic way to evaluate performance than simply comparing monthly rent.
  0 Reply
Allan C.
Rental Property Investor · Member since 2018 · 826 posts · 810 votes
4mo
everything equilibrates over time, so it MTRs outperform now they eventually won't as others crowd the market. STR operators didn't believe in this sentiment a few years ago, and now they are seeing it play out.

If you don't have a barrier to entry in your market, you can expect long term returns to stabilize and adjust for risk and effort. Think about long term fundamentals and not where the wind is blowing today.
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- R. Elle Berry
  OP
  Real Estate Broker · Cleveland, OH · Member since 2016 · 146 posts · 110 votes
  4mo
  Quote from @Allan C.:
  
  everything equilibrates over time, so it MTRs outperform now they eventually won't as others crowd the market. STR operators didn't believe in this sentiment a few years ago, and now they are seeing it play out.
  
  If you don't have a barrier to entry in your market, you can expect long term returns to stabilize and adjust for risk and effort. Think about long term fundamentals and not where the wind is blowing today.
  
  Hi Allan, great information. Thank you for sharing.
  0 Reply
Allen DuanPro Member
Property Manager · Los Angeles, CA · Member since 2022 · 590 posts · 463 votes
4mo
We manage MTRs in SoCal for all of our properties across the region and for different property sizes. MTR rents are 1.5 to 2X LTR, with average occupancy around 80%. For the right property here, MTR definitely gets you more cash flow than LTR. I've heard other markets can get up to 2x to 3x LTR rents.
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- R. Elle Berry
  OP
  Real Estate Broker · Cleveland, OH · Member since 2016 · 146 posts · 110 votes
  4mo
  Quote from @Allen Duan:
  
  We manage MTRs in SoCal for all of our properties across the region and for different property sizes. MTR rents are 1.5 to 2X LTR, with average occupancy around 80%. For the right property here, MTR definitely gets you more cash flow than LTR. I've heard other markets can get up to 2x to 3x LTR rents.
  
  Hi Allen thank you for the numbers, and sharing.
  0 Reply
Ashley Bitner
Member since 2022 · 77 posts · 43 votes
4mo
@Kenneth Garrett - how are you finding military tenants? I've been thinking about this a lot lately as my property is near a base as well.
1 Reply
Kenneth GarrettPro Member
Investor · Florida Panhandle/Illinois · Member since 2016 · 4k+ posts · 3k+ votes
4mo
@Ashley Bitner
I’ve found military members multiple ways. The sources are typically Zillow, Furnished Finder and Fox3 Lodging/TDY Hero and I’m on the local military sites. It works pretty well, but I’m always exploring other options. There are some Facebook pages, but that has not been that successful as of yet.
I’m always asking those who stay with me if they know anyone coming to the area.
1 Reply
Ashley Bitner
Member since 2022 · 77 posts · 43 votes
4mo
@Kenneth Garrett - thanks for the tips! I'm going to look into Fox3 Lodging and TDY Hero!
0 Reply
- R. Elle Berry
  OP
  Real Estate Broker · Cleveland, OH · Member since 2016 · 146 posts · 110 votes
  4mo
  Quote from @Ashley Bitner:
  
  @Kenneth Garrett - thanks for the tips! I'm going to look into Fox3 Lodging and TDY Hero!
  
  Wonderful! Glad we can connect and share valuable information! I will look into those sources too. Thank you Kenneth.
  0 Reply
Natasha VerelaBusiness Member
Investor · Winter Garden, FL · Member since 2026 · 7 posts · 0 votes
1mo
Im beginning that transition to MTR due to NYC Housing laws. The eviction process is BRUTAL so long term rentals are too much of a risk.
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- Drew SygitBusiness Member
  Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
  1mo
  How are you going to evict a "Guest"?
  [email protected]248-209-6824
  Logical Property Management4.9459 Reviews
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