The Fundamentals of Mid-Term Rentals: A Real Estate Perspective

Mid-term rentals—properties rented for a period typically ranging from one to six months—have been gaining popularity in the real estate market in recent years. As we see a shift in how people live and work, mid-term rentals offer a unique and lucrative opportunity for both property owners and tenants alike. As a real estate agent in Syracuse NY, I’ve witnessed firsthand how mid-term rentals can offer both flexibility and profitability.

What Are Mid-Term Rentals?

A mid-term rental is a property that is leased for a period longer than a typical short-term rental (like vacation properties or Airbnb), but shorter than a traditional long-term lease. This could mean anything from one month to six months, though the exact duration may vary depending on the agreement.
These rentals provide a flexible living situation, which is why they’re perfect for people in transition—whether they’re relocating for work, going through a home renovation, or simply in need of temporary housing for any number of reasons.

The Benefits of Mid-Term Rentals for Property Owners

Higher Rental Rates

Compared to traditional long-term rentals, mid-term rentals often offer higher rental rates. Although the rental period is shorter, the rental price per month can be higher because these leases are typically more flexible and cater to tenants who need temporary housing.
Reduced Vacancy Risks

Mid-term rentals offer a way to fill the gaps between long-term leases or periods when a property might be sitting vacant. They provide a steady cash flow while keeping your property occupied. This can be especially beneficial if you're unable to rent a property long-term due to market fluctuations or demand for shorter stays in your area.
Appealing to a Larger Pool of Tenants

Mid-term rentals cater to a variety of tenants, including business travelers, consultants, students, individuals relocating for work, and those undergoing home renovations. This broad tenant pool can increase the chances of finding a reliable renter.
More Control Over Property Use

With mid-term rentals, property owners retain more control over their properties compared to long-term leases. Tenants typically take better care of properties in exchange for flexibility. Plus, you can offer specific terms tailored to their needs, which can help you better manage your property.

Key Considerations for Mid-Term Rentals

If you’re considering entering the mid-term rental market, there are a few important factors to keep in mind:
Furnishing the Property

Unlike long-term rentals where tenants typically bring their own furniture, mid-term rentals are often furnished. This can be an added expense up front, but it may allow you to command higher rental prices, particularly if you provide high-quality furniture and amenities that appeal to tenants seeking a more comfortable, “home-like” environment.
Setting the Right Rental Terms

Mid-term rental agreements can be more complex than short- or long-term leases. It’s important to clearly define the lease term, rental rate, security deposit, and any additional terms—such as maintenance and utilities—before entering into an agreement with a tenant. This ensures that both parties are on the same page and helps avoid misunderstandings down the road.
Marketing the Property

Mid-term rentals need to be marketed effectively to stand out from the competition. Listing your property on platforms like Zillow, Craigslist, and Airbnb is essential, but you may also want to target specific channels for corporate housing or temporary housing for families or individuals in transition. You’ll also want to leverage social media, word-of-mouth, and professional connections to increase visibility.
Legal Considerations

Depending on the location, there may be specific regulations governing mid-term rentals, including zoning laws, tenant rights, and rental property tax implications. It's essential to familiarize yourself with local laws to ensure that you’re compliant and avoid potential legal issues.

Why Tenants Choose Mid-Term Rentals

For tenants, mid-term rentals are an attractive option because they offer flexibility without the long-term commitment of traditional leases. Here are a few reasons why people might choose to rent a mid-term property:
Temporary Living Arrangements

Whether relocating for work, studying abroad, or waiting for their home to be renovated, many tenants find mid-term rentals provide a perfect solution to temporary housing needs.
Business and Corporate Travel

Business travelers, consultants, and professionals in transition often prefer mid-term rentals for their flexibility. These tenants need a comfortable, well-equipped place to stay for extended periods and often appreciate the home-like feel that furnished mid-term rentals offer.
Affordability Compared to Hotels

For tenants who need housing for a month or more, staying in a mid-term rental can be more affordable than booking a hotel room for an extended stay. With the added amenities and space that mid-term rentals provide, tenants get more value for their money.

The Future of Mid-Term Rentals

As the world continues to adapt to changing work environments and shifting housing demands, the mid-term rental market is expected to grow. The flexibility it offers both owners and tenants makes it an appealing option in an ever-evolving real estate landscape.
For property investors, mid-term rentals offer a unique opportunity to diversify their portfolios, reduce vacancy risks, and increase rental income. As interest in these types of properties rises, those who are early to enter the mid-term rental market stand to benefit from the increased demand.
If you’re considering investing in real estate, mid-term rentals are worth exploring as a strategy to expand your business and meet the needs of today’s modern tenants. If you’re ready to explore your options in the mid-term rental market, connect with a real estate agent for advice and guidance on finding the right properties for your investment portfolio.