The Advantages of Managing Mid-Term over Short-Term Rental Properties
With the onset of a global pandemic, travel has decreased, and real estate owners are looking for alternatives to short-term stays. While year-long leases are one alternative, mid-term housing offers a number of advantages over shorter stays.
What's the difference between mid-term and short-term housing?
As you might have guessed, the difference between these two types of housing is the length of stay. Short-term rentals provide guests with a place to stay for 30 days or less while mid-term housing hosts guests from 1-12 months, but most often 3-6 months.
With these differing lengths of stay come other differences, many of which give mid-term housing an advantage.
What are the advantages of mid-term housing over short-term housing?
If you're thinking of switching from short-term rentals to mid-term rentals, you're not alone. While mid-term housing has some long-standing advantages, even more incentives have emerged with the onset of COVID-19. Let's walk through the advantages you'll gain if you extend your rental period.
Mid-term tenants have more buy-in...and often more respect.
Short-term rentals are more likely to book a property to party. | Photo credit: Jacob Bentzinger
While people of all types utilize short-term rentals, these types of leases cater to those looking for a vacation rental. And with vacation comes a desire for fun. When someone heads to Airbnb to book a New York City apartment for a weekend, there's no telling how they'll utilize the space. They may enjoy a calm getaway with their friends, or they may use the rental property as headquarters for a wild bachelor party.
Even if the guests know the property's rules, they might loudly party into the night, knowing that they'll be leaving in a few days. While you can detect excessive noise with the help of NoiseAware, you can't guarantee your guests will always be quiet or your neighbors will be understanding.
Mid-term housing attracts a different group of people. Traveling professionals, students completing internships, and people looking to relocate all utilize mid-term housing. No matter who they are, these tenants know that they'll be staying for at least a month.
Since these mid-term tenants know they'll see their neighbors and return to the same place for an extended period of time, they're more likely to show respect to the property and community. That means less noise, less trash, and more peace of mind for the property owner.
Even if renters aren't naturally quiet or clean, lease agreements set out the rules. While short-term housing usually comes with a simple contract, mid-term housing utilizes a legally-binding lease agreement. Since renters want to stay in their space, they're likely to follow the rules set out in this agreement.
There are fewer local restrictions on mid-term housing.
In the past 10 years, more cities and counties have established regulations regarding short-term rentals. For example, New York City bans stays of less than 30 days in apartment complexes and New Orleans bans short-term stays throughout the city.
If you're not ready to commit to a year-long lease term, consider a mid-term lease. You'll be abiding laws while still making a profit from your property.
Longer-term tenants = less property management.
When a tenant signs a six-month lease agreement, you only have to interact with that one tenant for the extent of their lease term. With a short-term lease, you have to worry about checking people in and out of properties, constantly advertising your space, and wondering if your next guest will cause issues with neighbors.
People are always looking for mid-term housing.
Since short-term rentals cater to travelers, their demand fluctuates with the seasons. If you've been renting out anything from a one-bedroom apartment to a six-bedroom house, you've probably noticed demand varies throughout the year.
Since mid-term housing attracts tenants who are looking to make a place their home for a few months, there is less of a flux in demand with changes in seasons.
Mid-term housing stands strong in the face of the pandemic.
Mid-term housing appeals to people relocating to a new city while working from home. | Photo credit: manny PANTOJA
While COVID-19 has decreased travel and therefore decreased the demand for short-term housing, many people are still looking for mid-term housing.
Nurses traveling to COVID-19 hotspots need a place to stay for the months they're working. International students must find a place to live due to travel restrictions preventing them from heading home. People are moving to new cities to start new jobs, and they need a place to stay for a few months as they learn about their new city.
Switch it up with mid-term housing.
Mid-term housing provides a number of advantages over short-term housing. So if you're getting tired of constantly trying to find tenants for your townhome or worrying about who's staying in your studio apartment, consider switching it up and trying out mid-term housing.
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