GUIDE TO MIDTERM RENTALS
WHAT IS A MIDTERM RENTAL?
What is a mid-term rental? A midterm rental is a furnished rental that is available to tenants for 30+ days. Many people are familiar with midterm rentals because they have heard of the traveling nurse model and/or have heard of subletting.
WHO NEEDS A MIDTERM RENTAL?
In the past, people usually thought of midterm rentals as supporting traveling nurses. Midterm rentals still support traveling nurses and traveling nurses are still a great demographic for midterm rentals. However, there has been a lot of growth in the midterm rental field (about 15% since 2020) because of covid. Here's who else might need your midterm rental:
Remote Workers: If you see the title of my book to the left, it's all about remote workers. That's because we are seeing changes in behavior trends. This means more people are working and vacationing, thus they are taking 30+ day "vacations" while they explore a new area longer. This is also why we are starting to hear the terms slomads, workcation and bleisure. This group is going to be huge for future rentals, so it's important to pay attention to them.
People New to a City: More and more people are not wanting to purchase a home in an area that they don't understand. To support this, Airbnb has leaned into their "Try before you buy" program and this is for people that are new to a city but want to know more about it before deciding on a neighborhood. They need a nice place with furniture while making this decision.
Military: Same thing here. A lot of military get two year deployments. They may want to experience the city first before purchasing and/or, they may just want a furnished rental for two years.
College Kids. Groan.! I know. Everyone fears college kids, but my experience is that they are nice, they tethered to parents with credit scores and they need furnished rentals for the duration of the school year.
Traveling Nurses. The Traveling Nurse model was popular and continues to be popular because Travel Nurses are easy to work with, have disposable income and tend to be responsible.
MIDTERM RENTAL SITES
I do a lot of consulting for midterm rentals and the main question people want to know is what midterm rental site they should use? They also want to know if there are sites that source directly to traveling nurses and/or if there are sites that support insurance companies.
You can cover 95% of the midterm rental market if you just use the following sites:
Airbnb (3% charge for each stay)
ZILLOW RENTAL MANAGER (free for the Landlord)
Furnished Finder - This is the go to midterm rental site (annual fee)
WHAT DOES AIRBNB CHARGE FOR MIDTERM RENTALS?
Airbnb charges the host 3% of the subtotal of the sales for midterm renters. Hosts can decide if they want to offer a discount for longer/midterm stays.
WHAT DOES ZILLOW CHARGE FOR HOSTING ON THE PLATFORM?
It is free for the landlord host to list their rental on Zillow. If they want Zillow Premium, it is $29.99 for 3 months.
WHAT DOES FURNISHED FINDER CHARGE FOR MIDTERM RENTALS?
Furnished Finder charges $99 annually for mid-term rentals.
MIDTERM RENTAL STRATEGY
Midterm rental strategy is not that different from short-term rental strategy,
but here are some midterm rental tips and tricks.
Use professional photos
Advertise in your headline that you are a midterm rental
Allow for dogs
Add a second monitor for working professionals
Advertise on at least two of the three midterm rental sites
Put midterm renters on a lease if you are not on Airbnb (I have one I can send you)
Background check your midterm rentals
MIDTERM RENTAL LEASE
I have a midterm rental lease that I'm happy to share with you. I ask that people either pay $10 for the lease, purchase my book on Amazon or book consulting with me.
If you do any of these three things, I'll issue you the lease and welcome docs that I use.
MIDTERM RENTAL CHECKLISTS
Here's a video on midterm rental checklists. I hope it helps. If you want more information on midterm rental checklists, my book has an entire section in the back of midterm rental checklists and guides.
WE HOPE YOU ENJOYED OUR GUIDE
If you found this helpful and are considering purchasing a primary residence with a mortgage rental reduction piece (aka, renting a room or your basement to a remote worker), we can help. If you are considering buying an investment with the intention of renting to a remote worker, email us, we can help.