As the slow season approaches for Airbnb, and considering the considerable effort involved in managing Airbnb rentals during this time with lesser returns, it is crucial to explore alternative rental models that offer a better effort-to-value ratio. One such model that we frequently recommend to our clients is mid-term rentals, which provide an ideal solution.
Let’s first establish what exactly constitutes a mid-term rental. Typically, these rentals are fully furnished properties available for rent for a duration of over 30 days but less than a year. Often referred to as the traveling nurse model, corporate housing, or subletting, mid-term rentals have gained popularity for their flexibility and convenience.
Having transitioned all of my Minneapolis Airbnb and long term rental properties to mid-term rentals, I firmly believe in that this is the best strategy. Below I’ll outline three reasons why I think mid-term rentals beat short term rentals.
- Attracting a Responsible Guests
While traveling nurses and corporate employees form a significant portion of the mid-term rental demographic, it extends beyond these groups. Individuals contemplating or going through a divorce, as well as newcomers to a city who are in the process of deciding where to settle permanently, are among those who opt for mid-term rentals.
This demographic, typically in their late twenties or older, tends to encompass individuals engaged in responsible professions or navigating significant life decisions. Based on my experience, they demonstrate an excellent track record of timely bill payments and maintain a quiet environment.
- Higher Rental Income
Renters are willing to pay a premium for well-furnished accommodations. Elevating the rent by approximately 1.25 to 1.5 times the average rate enables renters to enjoy a hassle-free living experience without the need for any additional effort on their part.
- Conversion to Long-Term Tenancy
It is noteworthy that a significant proportion of our mid-term renters ultimately transition into long-term tenancy agreements, extending their stay for one year or more. Impressively, these tenants willingly pay the elevated monthly rate throughout the duration of their extended stays, leading to increased revenue for property owners. Cha-ching! More money without heightened effort.
By embracing mid-term rentals during Airbnb’s slow season, investors can ensure a consistent income stream from October to March while still keeping their properties available for the more lucrative Airbnb season.
Now, without further ado, let’s dive into the world of mid-term rentals and experience the benefits they offer. You can list your property for free with the fastest growing platform dedicated to furnished monthly rentals, Ministays.com.
