realestate

Mid-term rentals touted as lucrative alternative to long-term leases and Airbnb restrictions

Mid-term rentals offer a less stressful alternative to short-term rentals, according to one investor.

R
eal estate investors are increasingly turning to mid-term rentals as a "sweet spot" in their overall strategy. These properties, listed for 30 days or more but less than a year, offer a balance between the ease of management and stronger cash flow compared to long-term rentals.

    For Zeona McIntyre, author of "30-Day Stay," mid-term rentals were a lifeline during the COVID pandemic when her Airbnb bookings vanished. She started listing her properties on Furnished Finder, which specializes in 30-day plus stays, and found it was easier to manage and more profitable than short-term rentals. "I realized there are tons of people looking for longer stays – and longer stays are kind of awesome because people don't need as much from you," she said.

    Massachusetts-based investor Dana Bull also pivoted to mid-term rentals due to rising interest rates, which eat into cash flow. She found that mid-term rentals were more time-intensive but also more profitable. "It's a whole different vibe from short-term rentals and way less stressful," McIntyre noted.

    One major advantage of mid-term rentals is the reduced regulatory burden compared to short-term rentals. As Zeona McIntyre pointed out, listings over 30 days are often classified as long-term rentals, exempting them from extra taxes and permits. However, hosting mid-term stays requires upfront work, including catering to a different customer base and navigating leasing challenges.

    Some investors, like Manny Reyna, use a hybrid approach, listing their properties on multiple platforms, including Airbnb, VRBO, and Furnished Finder, to maximize exposure and revenue. Seattle-based investor Peter Keane-Rivera also toggles between short- and mid-term rentals, using the latter during the slow season to generate consistent revenue.

    As interest rates continue to rise and regulations evolve, mid-term rentals are becoming an attractive option for real estate investors seeking a balance between ease of management and strong cash flow.

Real estate investors explore mid-term rentals as alternative to long-term leases and Airbnb restrictions nationwide.