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There’s a real need for dedicated mid-term rentals and suitable platforms to manage them, has been increasing rapidly over these past few years. But while there was always need for properties you can rent for one to twelve months, this market is growing exponentially. And there doesn’t seem to be any signs of it slowing down; That’s why it’s worth looking into mid-term renting & learning about its current drawbacks and prospects.
Mid-Term Rentals Face Prosperous Day
Witness the rise of technology catering to communication, collaboration, entertainment and convenience, more and more people afford the luxury of becoming digital nomads? These people work from home and choose to use the opportunity of remote work to travel around! Experience different locations, cultures, and countries. The COVID-19 pandemic only further proved the feasibility of remote working for a variety of professionals, in particular with knowledge work.
A study shows that in the US, the number of digital nomads grew from 7.3 million in 2019 to 10.9 million in 2020 — a 49% increase. Unsurprisingly, millennials are 42% of all digital nomads and Gen Z comprises 19% of the whole group (with many of them not even in the workforce yet!). But even with many companies have switched to a hybrid work model in 2021 we can’t expect the number of people working from the office to return to pre-pandemic levels; especially, as many employees expressed reluctance or unwillingness to return to the office full-time.
It’s not just digital nomads who might benefit from mid-term renting process improvements. Other large groups include travel nurses, exchange students, snowbirds and other professionals doing long business trips. This equates to an already established market that is projected to continue to grow at a rapid pace.
A Lack of Dedicated Solutions for Mid-Term Renting
Ask to yourself: What company comes to mind when you needs a place to rent for a three-month or six-month period? The truth here is, no business grew to become a household name for mid-term rentals yet.
Over the last few decades, many platforms sprouted offer short-term and vacation renting. Such as Airbnb (NASDAQ: ABNB), Booking (VIE: BOOK) and Vrbo. Some have been trying to step into the mid-term rentals game, albeit with little success thus far?
A main reason is that these platforms aren’t properly suited for those searching for a home to live in for longer than a few weeks. One theory suggests it’s simply a marketing issue. Customers not considering these brands for mid-term rentals because they’re primarily known as short term or vacation rental sites. On top of that, certain services need to be implemented — such as signing rental arrangements with landlords. Plus, there is a problem with exorbitant prices could comparable to renting a hotel room daily.
The Fundamentals of Successful Mid-Term Rentals
The truth is this medium-length renting falls into a separate group. It’s too long to be considered short-term or vacation rentals but under a year in length, so it doesn’t count as long-term rentals; for tenants, mid-term properties combine specific characteristics of both types. They typical length of stay for these guests is about 3-6 months.
Renters expect to sign a rental agreement, for protection, not common with short-term rentals. Also, if landing in a new city, they would expect the property to be in a central location, while still coughing up a fair price, which would never happen with hotels or Airbnb!
In addition, there are landlords to consider as well. Right now, many of them prefer long-term tenants, while others and especially sub-lessors; focus on short-term holiday accommodations.
“To streamline the process for both parties, we need to educate landlords about mid-term renting. Most are oblivious that it’s a viable business choice, how to do it correctly, and that it’s not as complicated as one might think. We need to promote mid-length rental periods and create a platform suitable for landlords to manage their mid-term rentals,” says Oleksiy Lubinsky. He is actually the CEO at Rentberry, a global renting platform.
What to Expect Next?
When it comes to mid-term rentals, certain issues and concerns remain unresolved. As the market is expected to grow, there is a high chance of a business emerging that will address all these requirements and create a clear and user-friendly solution.
One example of this is MiniStays, which aspires to fill the void with its new project, focused on stays 30 days or longer. Currently, the company is in the midst of a Reg A+ investment campaign, fundraising with the goal of securing partnerships with landlords worldwide for mid-term rentals.
Only time will tell what the future holds for mid-term rentals, whether it’s just a pandemic-inspired fad or the new normal. But, one thing is clear — this market is definitely worth keeping an eye on, as we might soon witness a revolutionary, once-in-a-generation sort of breakthrough with mid-term rentals.
