For property managers facing tightening short-term rental (STR) regulations, mid-term rentals (MTRs) can seem like a logical pivot. The idea is appealing: fewer turnovers, fewer headaches, and stable income from longer bookings. But is it really that simple?
During our recent Rental Scale-Up x RevLabs webinar, professional property managers from GuestReady, Blue Gems Group, and PriceLabs shared their real-world experiences managing MTRs. The insights were clear: while mid-term rentals can work well in certain markets, they come with hidden risks, operational complexities, and potential revenue trade-offs.
Before making the shift, property managers must consider where MTRs work, where they don’t, and how to structure their business to make them viable.
Where Mid-Term Rentals Thrive—And Where They Fail
Where Mid-Term Rentals Work
Mid-term rentals perform best in markets with a steady influx of business travelers, relocating professionals, students, and medical staff. Here’s where the model thrives:
1. Business & Corporate Hubs
Cities with strong corporate travel demand, expat relocations, and startup ecosystems are ideal for MTRs. These guests need furnished housing with flexible lease terms but aren’t ready to commit to a full-year lease.
- London: High demand from corporate travelers, especially in Canary Wharf and Shoreditch.
- Dubai: A rising MTR hub, with a 38% increase in digital nomad visa applications in 2023.
- New York: Corporate housing players like Blueground and Furnished Quarters thrive in Midtown and the Financial District.
Key Platforms: Morning Croissant (France), Housing Anywhere (Europe-wide), Blueground (global corporate housing), Dubai’s Property Finder & Bayut.
2. University & Medical Districts
MTR demand remains steady in areas with large universities, medical centers, and research institutions. Students, visiting professors, and medical professionals frequently seek 30-90 day accommodations.
- Boston: Harvard, MIT, and Boston University create consistent 3-6 month rental demand.
- Houston Medical Center: The world’s largest medical complex attracts thousands of traveling nurses and medical professionals.
- Berlin: Year-round demand from international students and researchers.
Key Platforms: Furnished Finder (medical professionals), Spotahome & Wunderflats (students & researchers in Europe).
Where Mid-Term Rentals Struggle
In seasonal tourism markets, mid-term rentals often underperform due to inconsistent demand and competition from STRs.
1. Vacation & Resort Markets
Markets reliant on short-term tourism—beach towns, ski resorts, and national parks—rarely generate stable MTR demand.
❌ Orlando (Disney Market): The STR market is optimized for short stays, and mid-term rentals often leave gaps in occupancy.
❌ Smoky Mountains: STR demand is strong, but there’s little local demand for MTRs due to the lack of corporate or business travelers.
❌ Myrtle Beach & The Hamptons: Seasonal dips mean inconsistent MTR occupancy.
Challenges: Few dedicated MTR platforms, reliance on Airbnb and Vrbo, high booking gaps.
Key Takeaway: If a market is heavily seasonal, switching to MTRs may lead to lower annual revenue and extended vacancy periods.
The Hybrid Model: STR + MTR for Maximum Profitability
For property managers hesitant to commit fully to MTRs, a hybrid model can balance revenue potential.
✔️ Peak Season → Prioritize STRs: Higher nightly rates, strong tourist demand, frequent turnovers.
✔️ Low Season → Pivot to MTRs: Steady occupancy, reduced cleaning/turnover costs, long-term stability.
Example: In Dubai, GuestReady shifts to STRs during peak tourist months but markets to expats and business travelers in slower seasons.
Challenges: Some cities (Paris, Barcelona, New York) regulate STRs and MTRs separately, requiring licenses or compliance adjustments.
Revenue Trade-Offs: Why MTRs Aren’t Always More Profitable
Mid-term rentals bring stability, but they don’t always maximize revenue. Key trade-offs include:
1. Lower ADRs Compared to STRs
Guests staying 30+ days expect discounted rates, similar to traditional long-term leases. While MTRs offer steady income, they often generate lower revenue per night than STRs.
2. Booking Gaps Hurt Annual Revenue
MTR guests book based on job start dates, relocation timelines, or semester schedules, leading to unrentable gaps between stays.
Example: A 90-day stay ending on March 20 may leave the unit empty until April 1, cutting into annual revenue. Unlike STRs, where short gaps can be filled easily, MTR gaps are harder to close.
Solution: Flexible lease terms (e.g., 45 or 75 days) and multi-platform listings can help fill gaps.
Marketing & Operations: MTRs Require a Different Playbook
Many STR operators assume they can list MTRs on Airbnb and expect similar success. This is a costly mistake.
1. Different Demand Sources
MTR guests don’t book impulsively on Airbnb. Instead, they come from:
- Corporate Housing & Relocation Agencies (e.g., Blueground, Corporate Housing by Owner)
- Medical Staffing & Travel Nurses (Furnished Finder)
- University Housing Networks (Housing Anywhere, Spotahome)
- Government & Military Housing
Solution: Build partnerships with HR departments, hospitals, and relocation firms to secure direct bookings.
2. MTRs Require More Hands-On Management
STR operations are built for speed and automation (instant bookings, dynamic pricing, frequent cleanings). In contrast, MTRs require manual guest screening, lease agreements, and direct payments.
❌ STR Systems That Don’t Work for MTRs:
- Instant booking and automated pricing tools (MTRs have stable pricing)
- High-frequency cleaning schedules (MTR guests expect fewer cleanings)
- Airbnb and Vrbo reliance (MTR guests come from alternative sources)
✔️ The Right Tech Stack for MTRs:
- Lease Agreement Management (Automated rental contracts, deposits)
- Recurring Rent Collection (Monthly invoicing, direct bank transfers)
- Multi-Channel Listing Support (Corporate housing, medical platforms, relocation agencies)
Final Takeaway: Should You Add MTRs to Your Portfolio?
Mid-term rentals can work—but only in the right markets and with the right strategy. Before making the shift, ask yourself:
- Who are the primary guests in my market? (Corporate, medical, students, tourists?)
- What platforms exist to support MTR bookings in my area?
- Will MTRs complement or cannibalize my STR revenue?
- Do I have the tech stack to support MTRs (leases, payments, distribution)?
- Can I handle the operational differences (guest screening, lease management, alternative marketing)?
Thinking about integrating MTRs into your portfolio? Watch our recorded webinar with industry experts from GuestReady, Blue Gems Group, and PriceLabs to learn how they successfully balanced STRs and MTRs—without sacrificing revenue.
