Mid-Term Rentals: Why Medium-Term Rentals Will Crush It in 2025

The mid-term rental industry is booming! If you want high-cash-flow rentals with less turnover and fewer headaches than short-term rentals, this could be the perfect investing strategy to adopt in 2025 and beyond. In this guide, you’ll learn why mid-term rentals are gaining popularity, the pros and cons of investing in these properties, and how to furnish and list your property for rent!

Summary:

• Mid-term rentals blend the best of short-term and long-term rentals, giving you high cash flow and low turnover.

• Despite uncertainty throughout the real estate industry, mid-term rentals are on the rise and offer huge cash flow potential heading into 2025.

• Location, comfortable furnishings, and convenient parking are the amenities mid-term tenants value most.

What Is a Mid-Term Rental? Better Than Regular Rentals, Easier Than Airbnb!

A mid-term rental property operates on a lease agreement that lasts anywhere from 30 days to (usually) six months. Sometimes called “medium-term rentals,” mid-term rentals are most commonly used by traveling nurses or professionals, remote workers, digital nomads, and students.

Better Cash Flow Than Most Rentals?

Mid-term rentals boast many benefits that neither short-term nor long-term rental properties can hold a candle to:

Higher Rents with Less Turnover 

Mid-term rentals combine the best of long-term and short-term rentals. These properties tend to command higher rents than long-term rentals but have much less turnover than short-term rentals.

No Short-Term Rental Regulations!

With short-term rental regulations on the rise, it’s becoming harder to launch an Airbnb in many markets. Fortunately, mid-term rentals aren’t bound to these same regulations, so you can provide extended stays with very little resistance!

Top-Tier Tenants 

Mid-term rentals tend to attract traveling professionals and high-income earners. These tenants are usually gone during the day, and since their companies are often paying for their housing, they are more likely to take care of your property!

Great for SMALL Properties, Too!

You don’t need a huge property to accommodate mid-term rental tenants. Many travel alone or with a coworker, so a one or two-bedroom home is often sufficient.

Browse cash-flowing rental properties with tenants in place!

Mid-Term Rental Demand is Growing…Fast!

While Airbnb revenue and demand are declining, mid-term rentals are heading in the opposite direction. 30+ day bookings have increased 94% year-over-year, and the average medium-term stay has ballooned to 55 days.

If local regulations, zoning laws, or market saturation have made it difficult for you to compete with short-term rentals, investing in mid-term rentals could be the alternative strategy you need!

Pros and Cons of Mid-Term Rentals

Are mid-term rentals right for you? While this strategy can be extremely lucrative, carefully weigh the pros and cons before diving in.

Pros

Why choose mid-term rentals over any other real estate investing strategy? These properties deliver the following benefits:

• Higher rent prices than long-term rental properties 
• Lower tenant turnover than short-term rentals
• Limited regulations and restrictions, unlike short-term rentals 
• Solid rental performance even outside of big cities
• More predictable income than short-term rentals
• Less wear and tear than short-term rentals
• Easier to manage than short-term rentals

Cons

Mid-term rentals might seem like a home-run investment, but don’t overlook the following drawbacks:

• Furnishing is required (so higher upfront costs)
• Increased wear and tear on furniture/home 
• Requires a strong lease (unlike with many guests renting on Airbnb)
• Higher tenant turnover than long-term rentals

Your Typical Mid-Term Rental Tenant

Who’s going to rent your property from you? Here are the most common mid-term rental tenants:

1. Traveling Professionals 

Many employees are required to travel for work, but booking a hotel or short-term rental for an extended stay is a significant expense. Companies can usually get a lower average nightly rate with a mid-term rental, making it a more cost-effective (and flexible!) alternative.

2. Traveling Nurses

When hospitals face staffing shortages, they call traveling nurses into town to fill temporary positions. The average stay for a travel nurse is 13 weeks, which means you could sign a three-month contract and lock in predictable rental income over that period!

3. Remote Workers/Digital Nomads

Roughly 28% of the global workforce is remote, making travel more feasible for the average worker. A mid-term rental is the perfect alternative for those who don’t want to splurge on a short-term rental or commit to a long-term lease.

4. Students 

Mid-term rentals are a great alternative for students who don’t want to live on campus or have a long commute. Students usually stay for the entire school year, meaning very little turnover for you!

Ready to start building wealth with real estate? 

What Makes a Performing Mid-Term Rental?

If every mid-term rental property made money, everyone would be doing it! Your property’s profitability depends on a few crucial factors:

Proximity to Amenities 

First and foremost, your mid-term rental property needs to be in an area that will attract your target tenants. For example, you’ll want hospitals nearby if you hope to house traveling nurses, businesses for traveling professionals, and universities for students.

Comfortable (and Practical) Furnishings

While pools, game rooms, and other luxury amenities might attract a vacationer, your mid-term tenants need practical furnishings—such as comfy beds, kitchenware, washers, and dryers. Think blackout curtains for night nurses or office spaces for working professionals and students!

Parking!

Much like long-term tenants, traveling professionals, nurses, and students will likely be bringing or renting a car while they’re in town. Make sure they can park on your property or somewhere close by!

Where to Advertise Your Mid-Term Rental

While the mid-term rental industry is growing, demand hasn’t yet caught up to that of long-term and short-term rentals. This means that listing your property in the right places is crucial.

Looking for investment properties with day-one cash flow?

Furnished Finder

Furnished Finder specializes in mid-term rentals, connecting landlords to traveling nurses and other professionals who need temporary housing. While there is an annual subscription fee to list your properties, the platform does not charge a booking fee—allowing transactions to stay between you and your tenants!

Airbnb 

Historically, Airbnb has been used to connect vacationers with short-term rental properties, but you can also use the platform to advertise your mid-term rentals. Just keep in mind that Airbnb charges both guest and host service fees.

Facebook Groups

There are plenty of Facebook groups for traveling nurses, digital nomads, and other professionals who need medium-term accommodations. Join a few of them and connect with your target tenants!

Nestpick

Nestpick matches tenants with mid-to-long-term rental providers all over the world. The site aggregates over 3 million listings across more than 3,000 cities, giving mid-term tenants plenty of options.

Make 2025 Your Year with Mid-Term Rentals!

Ready to tap into this growing investing strategy? You can start in 2025 by buying a property in a solid mid-term rental market, furnishing it, and listing it online for rent!

Don’t have time to manage your own mid-term rental? Rent to Retirement has turnkey properties that can be rented out for extended stays. These properties are professionally managed and easy to maintain, so you won’t have to worry about finding tenants or making costly repairs!

Mid-Term Rentals FAQs

What Is a Mid-Term Rental Model?

Landlords and investors use the mid-term rental model in markets where traveling nurses, business professionals, and students need a more flexible housing option than long or short-term rentals. These rental properties are available for extended stays between one and twelve months!

Are Medium-Term Rentals Profitable? 

Yes, the medium-term rental strategy can be very lucrative! These properties offer more predictable income and less turnover than short-term rentals, with 10%-30% more real estate cash flow than most long-term rentals!

What’s the Difference Between Short-Term and Mid-Term Rentals?

Short-term rentals are designed for vacationers and tourists and are typically available for stays of 30 days or fewer. Mid-term rentals temporarily house traveling professionals, nurses, and students and are available for extended stays of one to twelve months.