If you’re reading this, you’ve probably heard about mid-term rentals (MTRs)—that intriguing middle ground between traditional long-term rentals (LTRs) and short-term rentals (STRs). Think of them as the Goldilocks of real estate: not too hot, not too cold, but just right. Done correctly, an MTR can deliver higher rental income than an LTR while avoiding some of the high-maintenance headaches of STRs (constant guest turnover, wild parties, etc.).
But here’s the kicker: if you don’t play your cards right, your dream of passive income could quickly become an expensive nightmare. This post is your guide to creating a great MTR investment—packed with actionable advice, insider tips, and a bit of humor to keep things light. Let’s dive in.
1. Identification and Acquisition: Picking the Right Property for Your Audience
Know Thy Guest
First and foremost, great MTRs start with understanding your target audience. Why? Because the type of property you buy—and how you furnish, market, and price it—depends entirely on who you’re trying to attract.
• Research Market Comps: Start with Furnished Finder, the gold standard for MTR listings. Browse properties in your area to identify what’s working. Pay attention to location, pricing, and features that appear in top-performing listings.
• Think Locally: What drives people to your market for 1-6 months? Here are a few common demand generators:
- Hospitals and healthcare hubs: Travel nurses and medical professionals.
- Corporate relocations: Business travelers or remote employees on temporary assignments.
- Destination markets: Digital nomads seeking lifestyle-driven rentals.
- Military bases: Relocations or training programs.
- Universities: Visiting professors, grad students, or research fellows.
Buy Smart
Once you’ve identified your audience, it’s time to evaluate properties. This step is critical because you make money when you buy, not when you sell.
• Partner with an investor-savvy agent who understands MTRs.
• Run the numbers, hard: Factor in acquisition costs, furnishings, vacancy rates, property management fees, and ongoing maintenance. If the numbers don’t pencil out after conservative expense estimates, walk away.
• Avoid emotional purchases: This is an investment, not your dream home. The cutest property in the wrong neighborhood for your target audience is a bad deal.
2. Furnishings and Setup: Making Your Property Stand Out
Form Meets Function
MTRs don’t need the luxury-level pizzazz of an STR, but they can’t feel like a stale corporate apartment either. Think comfortable, modern, and practical:
• Furnish for your audience: Travel nurses? Include a comfy desk and reliable Wi-Fi. Digital nomads? Throw in a sleek coffee station and ergonomic chair. Business travelers? Add blackout curtains and soundproofing.
• Start with essentials: Furnished Finder offers a list of what tenants expect. Basics include a bed, couch, dining table, kitchen essentials, and laundry.
• Elevate without overspending: A splash of color, a well-placed mirror, or a trendy light fixture can make your property stand out in listings. Pro tip: Add a small “wow factor” like a bar cart, digital fireplace, or neon sign (within reason).
Projections Are Key
Before you buy a throw pillow, plan out your entire furnishing budget. Run projections that include furnishing costs in your financial models. Common rookie mistakes include over-furnishing and killing your ROI, or being too much of a cheapskate and leaving guests unsatisfied. Similar to other aspects of MTR’s, furnishing has a “goldilocks zone” that you want to stick to.
3. Operations: DIY vs. Property Management
Let’s be real: managing properties can be a full-time job—or a passive income stream, depending on your approach.
To Manage or Not to Manage?
Here’s how to decide:
1. Calculate the value of your time. If a property manager costs $1,000 per month and you’d need to spend 10 hours a month managing the property, you’re effectively paying yourself $100/hour to DIY. Are you worth more or less than that?
2. Be honest about your capacity. MTRs require less turnover than STRs but still involve tenant communication, cleaning coordination, and maintenance. If you’re juggling multiple properties or working full-time, a PM can save your sanity.
If You DIY:
• Treat it like a job, not a hobby. Learn basic property management skills, including how to screen tenants, handle minor repairs, and market effectively.
• Automate where possible: Use tools like Hospitable for messaging, Keyless Entry systems for check-ins, and apps like TurnoverBnB to manage cleaning schedules.
If You Hire a Property Manager:
• Look for experience with MTRs specifically. Not all property managers are familiar with this niche.
• Ask for references and check reviews. A good PM is worth every penny, while a bad one can tank your returns.
4. Pricing and Marketing: The Secret Sauce
Set the Right Price
Pricing an MTR is part art, part science:
• Use market data from platforms like Furnished Finder, Zillow, and AirDNA to determine competitive rates.
• Factor in seasonality and local demand drivers. Travel nurses, for example, may follow hiring cycles tied to flu season or hospital expansions.
Market Like a Pro
• Furnished Finder: This is your bread and butter for finding mid-term tenants.
• Facebook Marketplace: Surprisingly effective for short-term audiences like traveling professionals.
• Corporate Housing By Owner (CHBO): Great for higher-end properties targeting business travelers.
• Direct Marketing: Partner with local hospitals, universities, or companies to secure direct placements.
5. Recap: What Makes a Great MTR?
To sum it up, here’s your roadmap:
1. Identify your audience: Understand who you’re renting to and why they’re coming to your market.
2. Buy smart: Partner with an investor-friendly agent, and only purchase properties that pencil out after conservative projections.
3. Furnish thoughtfully: Provide the essentials with a touch of flair, keeping ROI top of mind.
4. Decide on management: DIY if it aligns with your goals and skills; hire a PM if your time is better spent elsewhere.
5. Price and market strategically: Use data, leverage platforms, and network locally to keep occupancy rates high.
To Wrap It All Up
MTRs are an incredible way to maximize your cash flow while avoiding some of the pitfalls of other rental strategies. They sit at the intersection of stability and profitability—perfect for investors who want to grow their portfolio without drowning in management headaches.
Remember, great MTRs aren’t born; they’re built with careful planning, research, and execution. So whether you’re a seasoned investor or dipping your toes into real estate for the first time, keep your eyes on the prize: a steady stream of income, happy tenants, and a growing net worth.
Now go out there and build the MTR of your dreams—and don’t forget to invite me to the ribbon cutting.