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Investing in mid term rentals is becoming increasingly popular, and with good reason. Not only can it provide a steady stream of income, but there are also many opportunities associated with mid term leases. But before you jump into the deep end and purchase a rental property outright for the purpose of leasing it mid term, it pays to do your research and figure out what type of property is best for mid-term leasing.
BEST PROPERTY TYPES FOR MID TERM RENTALS
We’ll cut to the chase, we believe the best property types for mid term rentals are smaller units. We believe these will have the most opportunity for success and the highest demand. When it comes to mid-term rentals, there are two main types of properties you should consider: one-bedroom apartments and studios. Both of these have their advantages—let’s take a look at each in turn.
WHAT ARE MID TERM RENTALS?
Midterm rentals are longer-term leases, usually lasting from two to twelve months. These mid-term leases give property owners more control over their tenants and can provide a steady income stream through consistent rental payments. Midterm rentals also allow you to price your rental based on the length of the lease so that you can earn more if the tenant stays for a longer period of time.
WHO RENTS MID TERM RENTALS?
Midterm rentals are popular with people seeking temporary housing solutions. These could include students, international travelers, professionals on work assignments, and military personnel who are relocating.
A popular demographic that utilizes mid-term rentals a lot, is traveling nurses. They often work contracts in different cities and need a place to stay while they are working. These leases give them the flexibility they need, without having to commit to an entire year lease.
WHERE TO ADVERTISE MID TERM RENTALS?
While you can list your mid term rental on sites such as airbnb.com and vrbo.com – there are other sites that are more suited for mid-term rentals. Some popular choices are furnishedfinder.com and travelingnurses.com.
I’d suggest starting with those two and then expanding your search to other listing sites.
BEST PROPERTY TYPES FOR MID TERM RENTALS
Since mid-term rentals typically attract a certain demographic (think working professionals who may have a stipend for rent expenses); the budget is typically limited. And let’s be honest, if you are a personal professional or student in need of mid-term rentals, the likelihood that you need a huge place it can fit in your stipend budget may be low.
From my research on forums and other online sources, and talking with these traveling professionals; it seems there are 3 important factors in their choice of a mid-term rental.
- LOCATION – This is likely the proximity to their work, hospital, or school as well as proximity to dining, restaurants, and entertainment.
- PRICE – The budget plays a big role since most have a limited stipend for housing.
- SIZE – Since it is most likely just the tenant, studio and one-bedroom apartments are the most popular rental types for mid term rentals.
Therefore, if you are considering purchasing a property with the goal of it being a mid term rental, it is imperative that you keep in mind these three factors when setting your rental rate, and selecting an appropriate property type.
ADVANTAGES OF STUDIOS FOR MID TERM RENTALS
Studios are a great option for mid-term rentals because they provide more flexibility than one-bedroom apartments. Studios can be rented out on shorter leases without compromising on tax benefits, making them a great option for tenants who may be unable to commit to a long-term lease.
Studios are also well suited to people who may need a place to stay for an extended period of time, but don’t have the budget or the space requirements of a one-bedroom apartment. Additionally, studios tend to be smaller and therefore more affordable, making them attractive to tenants on a budget.
Studios can also be attractive to tenants because they tend to be located in more central locations, making them ideal for people who need easy access to amenities. Since studios are smaller and typically less expensive than one-bedroom apartments, tenants may find that they can afford to live closer to the city center without compromising on price.
ADVANTAGES OF ONE BEDROOM FOR MID TERM RENTALS
One-bedroom apartments are a great option for mid-term rentals, as they provide more space than studios while still offering tax benefits. They tend to be popular with tenants who are looking for a place to stay on longer leases, such as students and young professionals.
One-bedroom apartments also tend to be located in close proximity to amenities such as restaurants, shops, and public transportation; making them attractive to tenants who want the convenience of living close to the city center without having to deal with the hustle and bustle of the city life.
Since one-bedroom apartments are bigger than studios, they provide more space for tenants to live comfortably. This can make them especially desirable for couples and families who may be looking for a place to stay on a mid-term basis.
In conclusion, both studios and one-bedroom apartments can make great mid-term rentals; it just depends on the tenant’s budget, size requirements, and location preferences. Both types of property offer benefits such as tax benefits, convenience, and affordability that make
ADVANTAGES OF RENTING A MID TERM RENTAL
For hosts, mid term rentals offer a way to get increased potential revenue over long-term leases but in areas when where short-term leasing is not allowed.
For example, many cities consider short-term anything under 30 days — if this is the case in your area; you might want to consider mid term leasing to get more revenue.
Additionally, mid-term rentals require less turnover and are much less work than short-term rentals, making them a great option for hosts who want to stay involved in the rental process without having to deal with the hassle of managing multiple bookings.
Finally, mid term rentals offer an opportunity for tenants to live in a space for an extended period of time without having to commit to a long-term lease. This can be especially attractive to students, business travelers, and people who are new to the area and want some time to get situated before committing to a longer lease.
OTHER PROPERTY FACTORS TO CONSIDER FOR MID TERM RENTALS
When selecting an appropriate property type for mid term rentals, hosts should also consider other factors such as size, amenities, and location.
In terms of size, it’s important to consider the number of people who will be living in the space and the amount of furniture that will need to be accommodated. Additionally, hosts should consider the amount of storage and whether or not there is a need for additional space, such as an office.
When it comes to amenities, hosts should think about what their target tenants might be looking for in terms of comfort and convenience. For example, if your property is located close to a university or business district, tenants may be looking for Wi-Fi and other tech-friendly features.
Additionally, hosts should consider if any HOA Rules or local laws may limit the type of activity that can take place in the space.
Finally, location is key when it comes to mid term rentals; hosts should make sure their property is located in a desirable area with access to amenities such as shops, restaurants, and public transportation. Having easy access to these services can be a huge draw for mid-term tenants.
POTENTIAL DISADVANTAGES OF MID TERM RENTALS
Though mid-term rentals offer some great advantages, there are a few potential disadvantages as well. In particular, mid term rentals can be more expensive than long-term leases due to the increased turnover of tenants, cost to furnish, and maintenance required for the property.
Additionally, mid-term rentals can be more difficult to fill than long-term leases due to the shorter length of stay and a greater number of potential tenants. This means that hosts may have to spend more time and energy marketing their property in order to attract the right tenants.
Finally, depending on where you are located, it is possible that local laws and regulations may not allow mid-term leasing, or may have restrictions on how often you can rent out your property. It is important to research any potential legal implications before signing a lease agreement.
Mid-term rental properties can be a great way to achieve increased revenue and tenant convenience, but there are some potential disadvantages that hosts should consider before signing an agreement. Hosts should ensure they research their local laws and regulations in order to understand if mid term rentals are allowed and any restrictions that may apply. Additionally, hosts should take into consideration factors such as size, amenities, and location to ensure their property is desirable for tenants. Ultimately, hosts should weigh the pros and cons of mid-term rentals before deciding if it is the right fit for their rental business.
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