Building Your Investment Portfolio with Midterm Rentals: A Growing Niche

There’s a growing demand for midterm rentals—properties rented out for 3 to 6 months, often to traveling professionals or those in transition. This investment strategy is gaining popularity because it combines some of the best aspects of short-term and long-term rentals.

What’s So Great About Midterm Rentals?

• Higher Profits: Midterm rentals typically command higher rents than long-term leases, and without the turnover costs associated with short-term rentals.

• Consistent Cash Flow: You avoid the void periods often seen with short-term rentals, where you’re waiting for the next guest. With midterm rentals, tenants usually sign longer leases, providing stability.

• Less Wear and Tear: Because tenants are staying for a longer period, there’s less turnover and less wear and tear on the property than with short-term rentals.

Why This Matters

Midterm rentals provide a happy medium between the high returns of short-term rentals and the stability of long-term leases. They’re a perfect fit for areas with strong demand for temporary housing, like near hospitals, universities, or business hubs.

The Bottom Line

If you have properties in areas with a constant flow of traveling professionals or people in transition, midterm rentals could be the sweet spot you’ve been looking for. They provide strong cash flow without the headaches of daily management or the stress of long-term vacancy.

Actionable Tip: Look for areas with high demand for midterm rentals and consider adjusting your investment strategy to include these types of properties. It could be the key to adding more stable income to your portfolio.