Midterm rentals (MTRs) are not just a lifeline for tenants navigating temporary challenges—they’re also an incredible opportunity for investors. Everyone has heard of short term rentals thanks to Airbnb and VRBO and we all know about the regular long term rentals, but many people have never heard of MTRs but if you’re an investor, this is a tool that definitely need in the toolbox.
What Are Midterm Rentals?
Midterm rentals (MTRs) are furnished rental properties typically leased for 1–6 months, striking a balance between short-term vacation stays and long-term leases. They cater to a growing niche of renters who need flexibility and comfort without the commitment of a year-long lease or the transient nature of a hotel stay.
Who Uses Midterm Rentals?
Midterm rentals appeal to a diverse range of renters, including:
- Traveling professionals like nurses, doctors, and other healthcare workers on short-term assignments.
- Corporate employees relocating or working on temporary projects out of town.
- Families in transition while their primary home undergoes repairs or they’re relocating to a new city.
- Disaster recovery teams sent to rebuild and restore after hurricanes, floods, or wildfires.
- Specialized crews like fiber-optic installers or utility teams working on temporary contracts.
- Anyone who needs a furnished home without a long term commitment.
These renters value the comfort of a home-like setting combined with the flexibility of shorter commitments.
1. Higher Rental Income
MTRs often command higher monthly rates compared to traditional long-term rentals. While they may not match the nightly rates of short-term rentals, the steady stream of income over several months balances out and often exceeds what a traditional lease would generate. They are often reliably funded by insurance claims or corporate employers.
2. Longer Occupancy Than Short-Term Rentals
Unlike short-term rentals, which rely on frequent bookings and constant turnover, MTRs provide more stable occupancy. Tenants typically stay for 1–6 months, which reduces vacancy periods and minimizes the hassle and cost of frequent cleanings and tenant turnover.
3. Reliable Tenant Pool
The demographic for MTRs—traveling nurses, corporate professionals, disaster recovery teams, and families in transition—tends to be stable, responsible, and respectful of the property. These tenants are often pre-qualified by employers or agencies, further reducing the risks of property damage or late payments.
4. Reduced Wear and Tear Compared to Short-Term Rentals
Short-term rentals often experience heavy wear and tear due to high guest turnover and a vacation mindset among visitors. In contrast, MTR tenants are typically working professionals or families who treat the property more like their home, leading to less maintenance over time.
5. Diversification and Market Resilience
MTRs allow investors to tap into an underserved segment of the rental market. They can be particularly valuable in times of economic uncertainty when travelers seek cost-effective alternatives to hotels or when local markets face housing shortages.
6. Fewer Regulatory Challenges Than Short-Term Rentals
Many cities are cracking down on short-term rentals with strict regulations or outright bans. MTRs, however, often fly under the radar because they don’t fall under the same legal frameworks as rentals for less than 30 days. This can make them a more sustainable, less risky investment.
7. Less risk Than Short-Term Rentals
The vacation rental market can fluctuate and be prone to market forces. People stop going to Airbnbs when the economy is bad. MTRs are more insulated against this.
Midterm Rentals: The Perfect Balance
Midterm rentals sit at the sweet spot between long-term leases and short-term stays. They offer:
- Higher cash flow than long-term rentals.
- Lower maintenance and turnover costs than short-term rentals.
- Access to a reliable and growing tenant pool.
With demand rising across industries and regions, MTRs are an excellent way for investors to e-like setting combined with the flexibility of shorter commitments.
Want to learn more about how midterm rentals can elevate your real estate portfolio? Let’s connect!
Grove Family Investments 
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