Including mid-term rentals in your vacation home rental strategy can be a game-changer. By targeting guests who need accommodations for several months, you can fill booking gaps during off-peak seasons, increase occupancy rates, and diversify your income sources. In this guide, we'll explore what mid-term rentals are, their benefits—especially during slow seasons—and how to implement this approach in conjunction with your short-term rental offerings.
Mid-term rentals are properties rented for periods ranging from 1 to 6 months. These stays differ from short-term rentals, which typically span less than 30 days, and long-term leases, which last over 6 months. Mid-term rentals are ideal for people in transitional phases—remote workers, traveling professionals, digital nomads, and individuals temporarily relocating.
This type of rental can be a valuable addition to any vacation rental strategy, providing consistent income without the need for the same frequent guest turnover associated with short-term bookings.
Steady Income During Slow Seasons
One of the key benefits of mid-term rentals is their ability to help cover off-peak seasons. Unlike short-term rentals, which can experience sharp declines in demand during non-vacation months, mid-term stays offer more stability. Renting to digital nomads or traveling professionals for several months can generate steady revenue during times when tourism slows down.
Reduced Operational Overheads
Mid-term rentals often mean lower operational costs. With fewer turnovers, there is less need for constant cleaning, maintenance, and guest communication. Instead of coordinating a new guest every week, mid-term rentals allow you to focus on creating a comfortable, longer-term experience that requires fewer touchpoints.
Lower Vacancy Rates and Risk Diversification
Mid-term rentals are an effective way to reduce vacancy rates. Instead of relying solely on short-term bookings, mid-term rentals can provide a reliable rental income, even during unpredictable times. This diversification of rental strategies lowers overall financial risk by spreading income across different tenant types and timelines.
Identifying Properties Suitable for Mid-Term Rentals
Not every vacation property is well-suited for mid-term rentals. Properties that perform well in this market often feature amenities that make longer stays comfortable, such as a fully-equipped kitchen, laundry facilities, workspaces, and a strong internet connection. Think about what a traveling nurse, corporate worker, or someone in temporary relocation might need—your property should offer those comforts.
Updating Listings to Attract Mid-Term Renters
To attract mid-term renters, you'll need to optimize your property listings. On platforms like Airbnb, Vrbo, or your own direct booking site, include keywords that appeal to longer-term tenants—such as "ideal for remote work," "fully furnished," or "perfect for relocating families." Mention features that would specifically appeal to longer stays, like a home office or discounted rates for monthly bookings.
Pricing Strategies for Mid-Term Rentals
Pricing mid-term rentals requires a different approach than short-term stays. While your nightly rate might be lower compared to short-term bookings, mid-term rentals will give you consistent income over a longer period, which can balance out the overall revenue. Consider offering discounts for stays over 30 days to attract mid-term tenants, especially during low-demand months when a fully-booked property is better than sporadic, high-rate stays.
Adjusting Availability
Balancing mid-term and short-term rentals requires careful management of your property’s availability. During peak tourist seasons, prioritize short-term rentals, which may fetch a higher per-night rate. During slow seasons, consider opening your calendar to mid-term tenants who will ensure consistent occupancy for several months. This flexibility will allow you to maximize your rental income year-round.
Tools and Platforms to Manage Bookings
To effectively manage both mid-term and short-term bookings, use property management systems (PMS) that integrate with multiple platforms. A platform like Futurestay can help sync calendars across platforms, avoid double bookings, and streamline the process of managing mid-term and short-term guests simultaneously.
Leveraging Seasonal Demand
During peak vacation seasons, short-term bookings are often more lucrative, but when demand dips, mid-term rentals become the key to maintaining occupancy. Consider creating seasonal listing descriptions to reflect this approach—advertise your property for holidaymakers in peak months and emphasize its suitability for digital nomads or relocating families during off-peak times.
Incorporating mid-term rentals into your vacation home strategy can seem challenging, but learning from the best in the industry can make a world of difference. Here are some experts leading the way in mid-term rentals, along with their valuable insights:
1. Vivian Yip
Vivian Yip is an accomplished real estate investor specializing in mid-term rentals. With a background in short-term rentals, she has helped countless property owners understand how to diversify their rental strategies to include mid-term stays.
Vivian is passionate about teaching others how to achieve financial freedom through real estate by making the most out of their properties year-round.
Learn more about Vivian and her work at: VivianYip.com
2. Jesse Vasquez
Jesse Vasquez is known for his unique approach to mid-term rentals, focusing on hospitality and creating unforgettable experiences for guests, especially in the healthcare sector.
Jesse has built a thriving business by catering to traveling nurses and professionals in need of medium-term stays. His strategies are helping hosts find stability in an often unpredictable market.
Learn more about Jesse at: TheRealJesseVasquez.com
3. Rachel Gainsbrugh
Rachel Gainsbrugh is the founder of "Short Term Gems" and a well-known expert in both short-term and mid-term rentals.
She focuses on luxury properties and helping other investors maximize their income while minimizing their workload. Rachel’s unique perspective on combining short-term and mid-term rentals allows property owners to target different segments of the rental market effectively.
Learn more about Rachel’s work at: ShortTermGems.com
If you're interested in learning more about how to seamlessly include mid-term rentals in your vacation rental strategy, join Vivian Yip for her webinar on October 17, 2024. In this webinar, Vivian will dive deeper into best practices, effective pricing models, and strategies for boosting your rental income with mid-term bookings.
Missed the event? Get the replay here
Adding mid-term rentals to your vacation rental strategy can help you make the most of your property throughout the year. By filling gaps during slow seasons, reducing operational overheads, and diversifying your income, mid-term rentals provide stability and increase overall profitability. Whether you’re just getting started or are an experienced host looking to optimize your strategy, mid-term rentals offer an excellent opportunity for consistent earnings.