How To Boost Your Wealth with Smart Midterm Rental Hosting
Are you exploring the lucrative world of midterm rental hosting, but unsure where to start? It’s a common feeling, and it is also the challenge that makes this type of hosting so rewarding.
With over a decade of hosting experience and thousands of five-star reviews, we’re here to guide you through every aspect of midterm rental hosting. We’ll cover pricing strategies, leasing best practices, how to find tenants, and much more, providing essential advice along the way.
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What Exactly Is a Midterm Rental?
- What Exactly Is a Midterm Rental?
- Why Consider Midterm Rental Hosting?
- Pricing Midterm Rentals Properly
- Midterm Rentals Use Leases
- Inspections Involving Your Midterm Rental Property
- Cleaning A Midterm Stay
- Allow Space Between Rentals
- Midterm Rental Hosting Uses Online Options Too
- Understand How Tire Kicker Waste Time With Midterm Rental Hosting
- Storage Matters For Midterm Renters
- Conclusion
What Exactly Is a Midterm Rental?
A midterm rental bridges the gap between short-term stays and traditional long-term leases. Generally, this means stays longer than 28 days, but it’s always wise to consult with a local lawyer to confirm specific regulations in your area. These rentals typically don’t extend to a full year, which is more characteristic of long-term arrangements.
Most midterm rentals are fully furnished and include everything needed for a guest to move in with just their suitcase. This contrasts sharply with traditional leases, where tenants usually need to provide their own furniture and belongings.
Why Consider Midterm Rental Hosting?
Many hosts, including us, find that certain times of the year bring slower booking periods. For some, this might be the winter months when overall travel demand decreases.
Midterm rentals can help fill your calendar with longer-stay guests, potentially at higher rates. Another compelling reason to consider midterm hosting is in areas with strict short-term rental regulations, offering more rental flexibility.
The HOA Angle to Midterm Rentals
Some Homeowners Associations (HOAs) require rentals of 30 days or more. Midterm rentals can be perfect in these locations.
This allows you to maximize occupancy during peak seasons with shorter stays and then switch to longer rentals during slower periods. We’ve also found midterm stays valuable in areas that might not attract as many weekend visitors, such as those near universities, corporate campuses, or specialized work locations.
Transparency is Important
Midterm rentals allow for a more transparent approach. Unlike short-term stays where guests rely solely on listing details, with midterm rentals, you can communicate directly with potential guests about all aspects of the property.
You can even conduct property walkthroughs with potential tenants. This is what we always prefer doing.
Pricing Midterm Rentals Properly
It’s essential to understand that you shouldn’t discount your rates simply because someone is staying longer. You are providing a value proposition that most other options can’t match.
A midterm rental customer has several choices to consider. A tenant typically faces a 12-month commitment to secure an unfurnished unit, dealing with traveling medical professionals or other types of traveling workers.
By providing a fully furnished space with cookware, dishes, working utilities, Wi-Fi, and furniture, you offer a flexible short-term stay. This flexibility is highly appealing to those who value convenience and are willing to pay for it. This allows you to price accordingly.
Know All Costs For Midterm Stays
It’s critical that everything is set up in advance for midterm guests, especially essentials like water and security. You don’t want them waiting weeks for these services to be connected, as that would negate the benefit of flexibility that they are paying for.
Midterm tenants expect a fully functional living space from the moment they arrive. When determining the monthly rate for a midterm stay, carefully factor in all your expenses.
Start by comparing the nightly rates of similar local properties to the monthly rates of long-term rentals. For example, we have a property that can generate around $3,500 to $4,000 per month as a short-term rental, but only about $1,800 as a standard lease. This allows us to have rental rate flexibility in that location anywhere from 2,800 up to 3,200 depending on the dates that we have rented out.
Stay Competitive On Your Rates
Remember that potential renters will compare prices and seek the best value for their money. It is helpful to explore resources such as Zillow, Furnished Finder, or Craigslist to research comparable listings.
Focus on properties targeting similar renters, particularly those using terms like “Corporate Housing” in their advertising, offering executive accommodations.
Midterm Rentals Use Leases
Regardless of whether a guest comes through Airbnb or is a personal acquaintance, it’s crucial to have a formal rental agreement in place if the property is located in an area considered a midterm rental location. A written agreement clearly outlines the terms and expectations, protecting both you and the tenant.
You can use online templates or sample agreements as a starting point. The lease for a midterm rental might include clauses addressing energy usage thresholds or policies related to potential damages, and damage deposits.
Background Checks And Rental Details
Skipping a signed agreement can send the wrong message. Potential tenants might question the professionalism of your operation if you don’t require proper documentation, which can involve doing a tenant screening.
Require necessary checks on previous rentals and proof of the purpose of their stay, whether for business or personal reasons. Transparency and honesty are essential for smooth interactions with your tenants, and ensuring that expectations are being managed by having lease agreements.
Inspections Involving Your Midterm Rental Property
Move-in walkthroughs are a common practice for long-term rentals, and they can be equally beneficial for midterm stays. Increased awareness during the walkthrough gives you more control.
Documenting the existing condition of the property provides a baseline for comparison. After the tenants move out, any necessary repairs or corrections can be addressed, covering the costs of remedies.
Take note of deeper issues, anything beyond surface cleaning, during the initial walkthrough.
Cleaning A Midterm Stay
Both you and your midterm renters are incentivized to maintain a consistent cleaning routine. Regular inspections can help prevent minor issues from escalating into major problems. While you want guests to be attentive, there’s always a risk of damage if a property is left unattended.
Communicate to midterm tenants that the goal is to avoid extensive cleaning upon move-out. Quality cleaning is crucial, and professionals can streamline this process for the customer. Keep in mind that cleaners may encounter additional tasks beyond standard cleaning, leading to extra costs and services.
Lease Transparency Helps Communication
Tenants appreciate a clear and straightforward pricing structure. Itemizing costs allows for better communication and helps them find excellent service at competitive rates. Be transparent with them up front on all expectations.
Avoid downplaying any potential issues that could impact other aspects of the rental. Be upfront about your costs as a host, just as you strive to simplify things for your tenants.
Allow Space Between Rentals
| Area | Tasks |
|---|---|
| Kitchen | Clean countertops and sink Wipe down appliances Sweep and mop floors Check and clean the oven and microwave Refill Supplies |
| Bathroom | Clean and disinfect toilet, sink, and shower Wipe mirrors and fixtures Sweep and mop floors Refill towels and toiletries Refill Supplies |
| Bedroom | Change linens and make the bed Dust all surfaces Vacuum or mop floors Refill Supplies |
| Living Area | Dust furniture and décor Vacuum or mop floors Clean windows and mirrors Refill Supplies |
| Throughout Rental | Empty all trash bins Inspect for damage or maintenance issues Restock supplies |
Having a guest occupy the property continuously for 90 days or more may require more extensive maintenance, beyond just surface cleaning and spot refreshing. Appliances with vents and thorough cleaning will be necessary for long-term stays, as this level of cleaning can be time-consuming when there’s little turnover.
Scheduling extra cleaning time between longer stays allows for a deeper refresh of the property. This includes things like checking carbon monoxide detectors.
Allow for downtime to keep the property in optimal condition and feeling refreshed for each guest.
Midterm Rental Hosting Uses Online Options Too
You can explore websites that focus less on short-term rentals like Airbnb and instead cater to guests such as travel nurses, who are traveling medical professionals, needing flexible housing. Those seeking corporate housing or needing executive accommodations would benefit too.
Here are some online platforms that cater to midterm rentals:
- Craigslist
- Zillow
- Airbnb for longer stays
- Furnished Finder
We continue to find opportunities through online groups and platforms, so stay open to various avenues. Online marketing is beneficial for hosts targeting specific rental situations, allowing us to learn from others with successful experiences in different industries.
We rounded up all of our favorite apps for our Short Term Rental business. Check it out for apps that may benefit your Midterm Rental business, too!
Understand How Tire Kicker Waste Time With Midterm Rental Hosting
Some people believe that midterm rentals are an “easy” solution to short-term rental challenges, assuming it’s as simple as pressing a button. However, it requires dedicated effort.
We receive inquiries from potential renters exploring various available options. As they contact different properties to gather information, you might encounter individuals who are simply scouting for midterm options without immediate intent to book. Due to the smaller number of reservations, don’t assume a booking is confirmed until all agreements are finalized, making sure you get a lease agreement signed.
Midterm renters are committing to a longer stay, making it a more significant decision that requires careful consideration before moving in. This necessitates your focused attention.
Be Ready To Accommodate
Unexpected changes can occur, and the reasons behind them are often unpredictable when people plan for extended living arrangements. We might have contracts for work requiring completion in other locations with short notice regarding timelines.
If those projects expand, negotiation becomes the next step. Guests will explore other rental options, but your contract terms can help address this.
Be aware that various factors are at play, and there should be alternative solutions if a guest needs to make sudden life changes. You will want to protect yourself by collecting a damage deposit.
To ensure you’re covering all your bases, check out our free Airbnb Essentials Checklist, which can help streamline your hosting setup and make sure you’re ready for every guest.
Storage Matters For Midterm Renters
Storage needs will vary depending on the renter’s situation and whether a midterm stay is the most suitable option. Some guests may have clothing in storage spaces if their stay is only for a few days or a week.
We need to adapt a unit based on available space, as a longer stay may necessitate additional drawers and dressers. This all helps with the value proposition for traveling workers.
Different items have varying storage needs. Providing different accommodations, like extra drawers and other furniture, will influence how renters approach things.
Takeaways
After exploring these various strategies and tips for midterm rental hosting, you’ll gain valuable insights into managing your property effectively and catering to your target renters. Take the time to thoroughly assess the expenses associated with your furnished property.
Implement formal processes and utilize proper documentation. Treat your property with care, as guests appreciate a well-maintained and welcoming environment.
Avoid last-minute stays and schedule inspections during property transitions. You can explore things like becoming a “Superhost” on some platforms and offer executive accommodations too.
Calling All Hosts: The Hosting Handbook
If you loved this post we invite you to check out our one-stop-shop solution for hosts everywhere —the Hosting Handbook! While you can download all the easy to consume, step-by-step tips we use in our own hosting business and create the ultimate “book” the Hosting Handbook is so much more than that! If you’ve consumed or content for years (or just met us!) this is the reference guide for all the amazing and tactical tips we have for running a profitable and, more importantly hospitable, short-term rental. How do we price for pets? How do we fold our towels? What sheets do we buy? How do I purchase a short-term rental? All these questions (and more!) can be answered in the Hosting Handbook! Check it out now!
Happy Hosting!
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