Introduction: Why Mid-Term Rental ROI Matters
Investing in your first mid-term rental property? Before you dive in, it’s essential to calculate your mid-term rental ROI—your return on investment. This metric helps you evaluate whether your rental strategy is truly profitable, not just cash-flowing. Let’s walk through how to break it down step-by-step.
Step 1: Understand the ROI Formula
ROI (Return on Investment) is the percentage of return you earn based on your total investment.
Formula:
ROI = (Annual Profit / Total Investment) x 100
It’s a simple yet powerful way to measure how well your mid-term rental performs.
Step 2: Estimate Gross Annual Income
Start by estimating how much rental income your property will generate yearly.
For mid-term rentals, calculate using average monthly rent × number of months occupied (usually 9–12 months/year).
Example:
$2,400/month × 11 months = $26,400 gross income
Use platforms like ministays.com or Airbnb + Furnished Finder for market comparison.
Step 3: Subtract Operating Expenses
These are your monthly and annual costs:
- Mortgage payments (P&I)
- Property taxes
- Insurance
- Utilities
- Furnishing and upkeep
- Cleaning and turnover costs
- Property management fees (if applicable)
Example:
Total annual expenses = $13,500
Step 4: Calculate Net Annual Profit
Now subtract your total expenses from gross income:
$26,400 income – $13,500 expenses = $12,900 profit
Step 5: Add Up Total Investment
This includes:
- Down payment
- Closing costs
- Renovations and furniture
- Setup fees
Example:
Down payment + startup = $60,000
Step 6: Plug Into the ROI Formula
Now calculate:
ROI = ($12,900 / $60,000) × 100 = 21.5%
A 21.5% ROI on your first mid-term rental is excellent—especially with lower turnover and stable tenant types.
Bonus Tips: Improve Your Mid-Term Rental ROI
- Reduce turnover by targeting corporate or insurance stays
- List on multiple platforms
- Provide all-inclusive pricing
- Minimize vacancy with dynamic pricing and long-lead booking
Want to learn more? Read our guide:
🔗 info.ministays.com/mtr-profit-strategies (internal link to pricing guides)
Final Thoughts
Calculating your mid-term rental ROI gives you more than a number—it gives you clarity. It helps you make informed decisions about pricing, tenant types, and scaling your portfolio. The better your math, the better your margins.
Ready to maximize your ROI?
Visit info.ministays.com for tools, calculators, and expert tips.
List your first mid-term rental at ministays.com and start earning smart today.
