Differences Between Short- and Mid-Term Furnished Rentals

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Published Date: 2023-06-14

Your choice of rental model will impact how much money you make and what kind of work you have to do. Two of the most common choices are midterm furnished rentals and short-stay house rentals. Do you know which is right for your needs?

In general, short-term rentals have a high-profit margin and more frequent and substantial maintenance costs. Midterm rentals have more stable revenue and more regular maintenance costs. Below, we’ll share more about what makes the two unique.

What Are Short Stay House Rentals?

A short-term rental has guests that might stay a few days or a couple of weeks. Sometimes called vacation rentals, these homes are designed for travelers. They tend to be less expensive than hotels and provide a more spacious and authentic atmosphere, which makes them attractive to tourists and business travelers.

Short-stay house rentals often charge a higher amount of rent for each night. You also get flexibility as a property owner as you can change the prices more often based on demand or season.

On the other hand, these homes may be occupied less and you will need to do more work when you have tenants. In addition, some areas have laws related to short-term rentals, and income and business tax are associated with offering them. During economic downturns, these homes are often hit harder.

What About Midterm Furnished Rentals?

People tend to stay in midterm rentals longer than short-term rentals. They’ll stay for several weeks or months. Some call this a month-to-month rental model. This used to be an unpopular form of corporate housing, but things have changed, and these homes are now becoming very in demand.

The occupancy rate for midterm rentals is about the same as with short-term rentals, but the tenants stay longer. In addition, it takes less time to manage these properties every month. The rentals are subject to typical landlord-tenant laws, and only income tax is required.

However, the rent may be less expensive for midterm furnished rentals. Marketing can also be more challenging, but this may change as more people become aware of these rentals and their perks.

Whether you offer short- or midterm rentals for business travelers, relocating families, and others, CHBO is here to help. You can list your property on our site to gain the eyes of millions of people who want to stay somewhere similar.