An Intro to a New Rental Market — Medium term Rentals

Ever thought about investing in medium-term rentals? It’s a growing market, and it’s a great way for hosts and property owners to bring in more bookings, earn extra income, and shake up their rental strategy.

The vacation rental industry took a big hit during the pandemic, but it wasn’t all bad news. Remote work became the norm, and suddenly people could pack up their laptops and work from anywhere for longer periods.

What's more, after a bumpy few years the rental market seems to be stabilizing, with AirDNA reporting that not only has the market stabilized, but currently the demand for rental property exceeds the supply which positions hosts and property managers in an ideal space to maintain their pricing.

Vacation rentals are not going anywhere and depending on your goals, medium-term rentals might be a great strategy for your rental property.

With a little creativity—think cozy decor and discounted rates for longer stays—you can turn your vacation rental into a magnet for professionals who want a change of scenery. And it’s not just business travelers—sometimes people just need more space and comfort than a hotel room can offer.

Medium-Term Rentals VS Short-Term Rentals

So, what’s the difference? Medium-term rentals, or mid-term rentals, are stays that last anywhere from one to six months.

Short-term rentals, on the other hand, are usually less than 30 days, while long-term rentals require at least a year’s commitment.

Mid-term rentals offer that sweet spot in the middle—flexible, convenient, and perfect for today’s travelers.

Why Medium-Term Rentals Make Sense

Offering a discounted rate might feel like a downside at first, but trust me, the benefits are worth it.

Fewer Turnovers = Less Stress

Turnovers are one of the biggest headaches for hosts. Sure, setting up your listing takes some time, but once it’s live, you don’t have to mess with it too much. The real work kicks in when you’re prepping your property for new guests. Cleaning after every short-term stay can take hours, and if you’re hosting multiple times a week, that adds up fast.

And let’s not forget the cost of all those cleaning supplies—you’ll go through them quicker than you think.

Medium-term rentals, though? Game changer. Instead of cleaning up after every checkout, you’re looking at once every few weeks for mid-term tenants, or even just a few times a year for longer leases. The tenants handle the day-to-day cleaning themselves, just like they would with a long-term rental.

More Prospective Tenants

Offering your rental property to those looking for a place between three to nine months means that you can tap into a new rental market. You’re not restricted to marketing to traditional holidaymakers only.  

(Some) Protection Against Seasonal Fluctuations

Where turnovers are one of the hosts’ most time-consuming tasks, seasonal fluctuations are one of their biggest worries. Most cities experience a drop in demand during certain times of the year. 

In fact, demand for certain days of the week is also much lower. It’s much easier to secure bookings for the weekend than what it is to fill your calendar during the week, leaving you with less rental income.  

However, if you offer extended stays during the low season, you’ll still generate a steady stream of income, helping you to pay all your recurring expenses. 

Cons of Mid-Term Rentals

Most of the downsides of medium-term rentals are only evident when comparing them to long-term rental markets. These include:

• Increased turnover compared to long-term rentals
• This also correlates to increased maintenance costs
• Subject to seasonal demand
• You need to check the legal definitions and requirements in your area

So when deciding between focusing on short-term vacation rentals or medium-term rental properties, it really is a matter of understanding your unique business.

Mid-Term Rentals’ Target Audience

Mid-term rentals might not appeal to your typical traveler, but there are various types of travelers that you can target like:

Families Relocating

A mid-term lease is ideal for families relocating to a new city. A short-term rental or hotel room will work out too expensive, considering the steeper daily rate.  

On the other hand, they might not be ready to sign a long-term lease quite yet. If they’re new to the area, they would first like to get to know the different neighborhoods and amenities before signing a binding lease agreement. 

Digital Nomads

As mentioned earlier, remote working has fuelled interest in mid-term stays. Workers who are allowed to work from any location will appreciate a flexible lease. 

Travel Nurses

Travel nurses typically stay in the same location for about 13 weeks. However, it can be up to six months, making them ideal guests for mid-term rentals. 

College Students

College students don’t necessarily need to stay in the same furnished apartment for the duration of their studies. Not all colleges use the same schedule for their academic year, but students typically get a break two to four times per year. So, even if they choose to use the semester system, the length of time that a student will need to attend class would be six months. 

Not all students want to stay in a dorm and not everyone who wants to stay there gets a room, creating a real demand for mid-term rentals. 

Sure, renting to students comes with worries about property damage and regular parties. Unlike long-term rentals, though, this option gives you the opportunity to reassess again after a few months. If a student is causing problems, you don’t have to renew the lease. 

Can You Still Use Airbnb for Medium-Term Rentals?

The short answer — yes. Airbnb lets guests search and book extended stays of a month or even longer.

To make these more mid-term rental stays more attractive, guests will be charged a single monthly payment without additional charges. These mid-term rentals will also be marked as offering amenities suited for longer stays.

In addition to Airbnb, you can also check out other mid-term rental platforms like:

• Furnished Finder
• Sonder
• AvantStay
• Mint House
• HomeToGo

Popular Amenities for Mid-Term Rental Properties

It’s important to remember that mid-term rentals mean furnished properties. Aside from the basics your tenants will need like furniture, linen, and a kitchen, it can also be a good idea to offer Wi-Fi, create a laptop-friendly workspace, and organize free parking. 

According to data from Forbes in their survey of the 2025 rental market, the three most popular amenities among renters were:

Air conditioning or central air (77%)

At least one guaranteed parking spot (65%)

In-unit washer and dryer (60%)

These are very basic considerations and will serve as a good baseline for any property managers when planning or reviewing rental properties.

It can also be a good idea to make your listing pet-friendly. Being away from your pet for longer than a month is a tall order. Relocating families, in particular, will appreciate pet-friendly, medium-term rental lease.  

Which Areas Are Popular for Mid-Term Rentals?

From Sydney to San Francisco, longer stays are popular all over the world. According to Airbnb, the following cities are some of the most popular destinations among travelers looking for an affordable option for a longer break:

• Amsterdam, the Netherlands
• Athens, Greece
• Barcelona, Spain
• Berlin, Germany
• Cape Town, South Africa
• Cophenhagen, Denmark
• Lisbon, Portugal
• Montreal, Canada
• New York City, USA
• Rio de Janeiro, Brazil
• San Francisco, USA

Just like with short-term rentals, you first need to double-check the local regulations. That being said, you’ll probably have an easier time renting out your property to mid-term renters in areas with strict local laws.  

Entering Into the Mid-Term Rental Market

Whether offering mid-term leases will be a smart switch will depend on factors like your property’s location, demand, and local ordinances. For example, in areas with strict regulations, medium-term rentals (or even long-term rentals) might be your only option. Add to that amenities like a hospital and offering month-to-month rentals can help address that need for corporate housing. 

Pricing Strategies

While medium-term leases offer an attractive option to hosts, pricing these rentals requires a thoughtful approach to balance affordability for your guests and profitability for you. Here are some strategies to consider:

1. Understand the Local Demand Research your market to identify the types of guests who are likely to book mid-term stays in your area. For example, business professionals on extended assignments, students, or people relocating often seek mid-term rental options. Analyze local rental rates for comparable properties to ensure your pricing is competitive yet reflective of the added conveniences you provide.

2. Offer Tiered Pricing Many hosts find success with tiered pricing based on the length of the stay. Offering discounts for longer stays can make your property more appealing. For instance, you might charge a weekly rate for stays under a month and a reduced monthly rate for guests staying longer. Clearly outline these rates in your listing to set expectations upfront.

3. Account for Seasonal Trends While mid-term rentals are less sensitive to short-term fluctuations in demand, it’s still essential to consider seasonal trends. If your area attracts snowbirds in the winter or interns in the summer, tailor your pricing to align with peak demand periods. During off-peak seasons, competitive pricing or additional amenities can help fill vacancies.

4. Include Utilities and Services in Your Rate Mid-term renters typically expect an all-inclusive experience, with utilities like water, electricity, and Wi-Fi included in the rental price. Consider bundling these costs into your rate and highlighting them in your listing. This transparency can set your property apart and simplify budgeting for your guests.

5. Use Dynamic Pricing Tools Dynamic pricing software can help you adjust your rates automatically based on market conditions, ensuring you remain competitive. These tools analyze factors like local occupancy rates and demand trends, giving you an edge in setting the perfect price for your mid-term rental.

6. Monitor and Adjust Once your mid-term rental is on the market, keep an eye on its performance. If you’re not attracting bookings or guests aren’t staying as long as expected, be prepared to adjust your pricing or enhance your property’s appeal through targeted marketing and improved amenities.

At the end of the day, you need to review and revise your strategies as you go and be flexible enough to adapt to the changing market. Automation can take some of the admin out of property management and even provide you with the tools to keep on top of your business plan. 

Final Thoughts

As the rental landscape continues to evolve, embracing mid-term rentals can be a smart way to diversify your hosting portfolio and tap into a consistent revenue stream. With the right pricing strategies and a focus on guest satisfaction, you’ll be well on your way to becoming a standout host in this emerging market.

Just like you won’t know if mid-term rentals will suit your style and property until you give it a go, you also won’t know just how much you’ll save by signing up. No long-term commitment is needed. Pay month to month, but if you’re ready for a year contract, you can save up to 33%. Like a mid-term rental is a flexible solution for business travelers, iGMS is a flexible solution for hosts and property managers.