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Short-Term vs. Mid-Term vs. Long-Term Rentals: Which Is Best for Your Property?

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Published Date: 2025-06-04
rental business

Choosing the right rental model is a significant decision for any property owner. Whether you're just getting started or looking to pivot, understanding the pros and cons of short-term vs long-term rental options, as well as mid-term, can help you build a smarter, more sustainable rental business.

Let’s break down the three main rental types and which one might best suit your furnished property.

Top rentals

Short-Term Rentals (STRs)

These are often booked for a few days to a few weeks, commonly seen on platforms like Airbnb. They offer flexibility and the potential for higher nightly rates. However, short-term rentals also come with more frequent turnover, higher cleaning costs, and can be subject to strict local regulations.

STRs work best in tourist-heavy areas or cities with seasonal demand, but they require active management and constant marketing to stay booked.

 

Mid-Term Rentals (30–180 Days)

Mid-term stays are becoming increasingly popular, especially in the corporate housing space. This model offers the mid-term rental benefits of stable monthly income without the churn of short-term guests. Tenants may include traveling professionals, digital nomads, insurance clients, or relocating families.

You’ll experience fewer turnovers, reduced wear and tear, and consistent income, all while avoiding many of the restrictions placed on vacation rentals. Mid-term rentals are often the sweet spot for furnished units, offering the best blend of profitability and predictability.

 

Long-Term Rentals (12+ Months)

Long-term leases provide the most stability, usually with tenants responsible for their utilities and furnishings. This model is ideal if you want a more passive income stream and less day-to-day involvement.

However, long-term rentals don’t always command the same rates as furnished options and offer less flexibility if you want to use or sell the property sooner.

 

Finding the Right Furnished Rental Strategy

There’s no one-size-fits-all answer. The right approach depends on your property location, your availability to manage the rental, and your financial goals. Many landlords find that a mid-term model delivers the ideal balance, especially when listed on platforms like CHBO that specialize in this niche.

With the right furnished rental strategy, you can optimize occupancy, reduce stress, and grow a more profitable rental business.


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