Real estate investors say mid-term rentals are the 'sweet spot,' offering a way around Airbnb red tape and more cash flow than long-term rentals
When the COVID pandemic erased virtually all of Zeona McIntyre's Airbnb bookings, she found a solution in mid-term rentals.
"I was really open to doing whatever I needed to get my properties rented," the Colorado-based property investor told Business Insider. She started listing her properties on Furnished Finder, which is geared toward traveling professionals and specializes in 30-day plus stays, and was surprised by the hit rate and relative ease of the process.
"I realized there are tons of people looking all the time for longer stays — and longer stays are kind of awesome because people don't need as much from you. They're OK to go buy their own toilet paper and change the batteries because they're living there."
What started as an attempt to combat Airbnb vacancies evolved into her preferred rental strategy.
"My bread-and-butter is these mid-term rentals," said McIntyre, who is the author of " 30-Day Stay." "I want a longer tenant in there, and I don't want to have to think about it for three months."
Massachusetts-based investor Dana Bull also pivoted to mid-term rentals, but for a different reason: to withstand rising interest rates. The average 30-year fixed mortgage rate surged to 8% in 2023 and lingered in the 6s and 7s in 2024. Higher interest rates mean higher monthly payments, which can eat into an investor's cash flow.
Bull has been renting to long-term tenants for more than a decade, but to make the numbers work on her most recent acquisition, a charming single-family home she found in 2023 and couldn't pass up, she turned to mid-term rentals, which she says are more time-intensive, but also more profitable.
The 'sweet spot' of rentals
Real estate investors tend to agree that, while long-term rentals can produce consistent, relatively passive income, these leases generate less revenue a month compared to short-term rentals.
However, short-term rental properties present unique challenges, such as constant tenant turnover, managing multiple bookings, and ever-evolving country-specific rules and regulations.
Then, there are mid-term rentals — or, the "sweet spot" of real-estate investing, according to McIntyre — which are properties listed for longer than 30 days but less than a year. In her experience, they're "a whole different vibe from short-term rentals and way less stressful."
One major stressor she faced in hosting on Airbnb and VRBO was the evolving rules around permits and licenses.
"Short-term rentals have been under scrutiny, and the ever-tightening regulations are constantly changing," she said. "But there is sort of this magic number that, as soon as a listing is over 30 days, these rentals get classified into a long-term rental bucket and then you don't have the extra taxes or have to have a short-term rental permit."
That was a contributing factor in Manny Reyna's decision to incorporate mid-term rentals into his overall strategy.
"Within San Antonio, you need an STR permit through the city," said Reyna, who rents two single-family homes and two tiny homes in the San Antonio metro. "The permit is $450 just to apply, and you have to pay county taxes and city taxes on the revenue. It's called a hotel tax, and it's really high."
However, if you're listing a 30-day stay, "you don't necessarily have to worry about the STR taxes," said Reyna. "It's a little bit of a loophole, if you will. It's also a good middle ground, because the cash flow is higher than long-term rentals."
That said, hosting mid-term stays will require upfront work. You're catering to a completely different customer, and leasing can be a challenge because mid-term rentals are less mainstream, explained Bull. "If you want a long-term rental, you know you're going to be on Zillow or work with a real-estate agent. If you want a short-term rental, you also have set channels: You have Airbnb, Vrbo."
The equivalent for mid-term rentals is Furnished Finder, "but it's not very well known, and it's not nearly as big as something like Airbnb," she said.
A hybrid approach
While Reyna prefers mid-term tenants, he wants to cater to a broad customer base and still lists his properties on Airbnb, VRBO, Hipcamp, and Facebook Marketplace when there's a gap between mid-term tenants.
"I try to do a shotgun approach to see who's going to bite first," he said.
Seattle-based investor Peter Keane-Rivera also uses a hybrid model for his 70s-themed " Groovy Guest House," which he initially listed exclusively as a short-term vacation rental.
He enjoys the work that goes into managing a short-term rental — "it does allow you to provide a unique service and really to have control over the quality of that service," he said — but offering 30-plus day stays will generate more consistent revenue during the slow season when people are traveling less.
"In the summertime, it pulls in a lot — in June and July, I made almost $5,000 on a one-bedroom in the outskirts of Seattle," he said, referring to the Airbnb income. "But in the wintertime, there are lower margins. I'd rather get something closer to market rent rates, not have to worry about it for four to five months during the slowest seasons, and then spin it back up for spring, summer, and fall to maximize the return."
Toggling between short- and mid-term rentals is "a real asset," he said, adding that if he expands to a second Airbnb unit, he'd use the same strategy. "For eight months out of the year, I'd run it as an Airbnb and then during the low season, run it as a mid-term rental."
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Miami Herald
32 minutes ago
- Miami Herald
Why More Boomers Are Deciding to Rent
Baby boomers are redefining the rental market, a new study has found, with millions more older Americans now renting homes than was the case a decade ago. Over the past 10 years, the number of renters aged 65 and older has surged by nearly 30 percent, adding 2.4 million senior renters across the country-by far the largest growth of any age group, according to new research conducted by Point2Homes. While the number of renters declined in other age groups, particularly those aged 18 to 54, the number of seniors opting to rent has boomed. Past generations viewed homeownership as a hallmark of independence, but today's older adults are embracing the flexibility of renting. Downsizing, relocating to warmer climates, and avoiding the burdens of home maintenance are just a few of the more positive reasons behind the trend. But rising housing costs, inflation, and limited affordable inventory also play a critical role. As more seniors navigate retirement on fixed incomes, renting is becoming not only a practical alternative, but in many cases, a financially imperative one. The reasons behind the growing number of senior renters are varied, a mix of both lifestyle choices and financial necessity. "Seniors value the flexibility renting provides, which can allow them to downsize, move to better locations, or avoid the responsibility that comes with owning a home and its expenses," Alexei Morgado, a Florida realtor and CEO of Lexawise Real Estate Exam Preparation, told Newsweek. "Owning a home can take a lot of physical energy and money. When renting, you can simply enjoy life without worrying about major repairs, the uncertainty of property taxes, or if your home will lose value or be hard to sell." Shifting cultural attitudes toward aging and independence are also influencing this trend. "In the past, homeownership was viewed as a key indicator of independence in retirement," says Morgado. "The cultural shift in the thinking surrounding aging has moved rapidly, however, and seniors no longer feel as though homeownership is a mainstay of independence and a comfortable life in retirement." He notes that the COVID-19 pandemic accelerated this rethinking. "Seniors began to focus on flexibility and ease rather than stability and predictability, which is often associated with homeownership," Morgado said. "Many seniors have begun seeking smaller properties or apartments in more desirable areas away from their long-time homes and may prefer urban and suburban environments even if there is additional cost or a long-term rental lease. "In this way, renting allows for added freedom of movement if they feel they need to move or relocate." The study found that many senior renters are relocating to warmer climates, particularly in Florida, which is well-known for its large retirement community. Other southern states, such as Louisiana and Texas, are also experiencing an increase in the number of graying renters. In Baton Rouge, the percentage of properties rented by older Americans has boomed by 88.7 percent over the last ten years. Similar numbers are reported in Jacksonville, Florida, and Round Rock, near Austin, Texas. But for many, the switch to renting isn't just a matter of lifestyle-it's a financial necessity, Morgado explained. "The gap between owning and renting is widening, especially for seniors who rely on a fixed income. Home prices have skyrocketed in many parts of the country over the last 10 years with continued high mortgage interest rates," he said. "Rapid changes in housing demand mean that local areas with very limited affordable housing options have both renters and former homeowners looking for an affordable lifestyle. Seniors that once owned homes are now renting for value." Steve Sexton, CEO of Sexton Advisory Group, agrees. "This trend is fueled by both convenience and necessity; however recent economic uncertainty is the more likely driver of seniors renting in retirement," Sexton told Newsweek, noting that many retirees live on fixed incomes that have failed to keep pace with rising housing costs and inflation. "Utilities, insurance, property taxes, and maintenance costs associated with owning a home continue to increase, while Social Security and pensions struggle to keep up," he said. This is exacerbated by a lack of affordable homes on the market, even for those who may prefer to own, Sexton said, a problem that is getting worse over time. As a result, "for many seniors, renting offers a more predictable and/or simplified budget in which they don't have to account for repairs and certain housing expenses." Yet the underlying issue of housing affordability remains a serious concern. A 2024 report by the Joint Center for Housing Studies found that more than 40 percent of renters aged 65 and older spend more than 30 percent of their income on rent, the threshold at which the U.S. Department of Housing and Urban Development considers a household "cost burdened." "The availability of affordable housing, however, is a glaring reality for many seniors," Morgado said, noting that it's "a barrier obstacle to seniors maintaining their independence." Boomers having to rent out of financial necessity is likely to continue. For now, most adults aged 65 and older are homeowners, according to the Joint Center for Housing Studies at Harvard University. However, more than one in five older households, some 7 million, choose to rent, according to the 2023 Housing America's Older Adults study by JCHS. Jeff Lichtenstein, CEO and broker at Echo Fine Properties, said the trend "will get worse in the next decade," with "inflation being the main culprit." "With increased costs coming from tariffs and with cuts in the new bill and from DOGE, it puts seniors in a tough situation," he told Newsweek. "In the next decade, there will be an explosion of baby boomers in that age group. As one loses a spouse or looks at financing, there should be more of a need to rent." Related Articles Gen Z Is Significantly More Afraid of This Trend Than Older GenerationsSocial Security Claims SkyrocketIt's Not Gold-Digging, but Gen Z Will Marry for Money, Predicts ExpertGen Z's Trauma Therapy Compared to Millennials, Boomers 2025 NEWSWEEK DIGITAL LLC.
Chicago Tribune
an hour ago
- Chicago Tribune
Weber Grill Restaurant to be first tenant in Orland Park downtown development
Weber Grill Restaurant will open a location in Orland Park next year, becoming the first tenant announced for the village's downtown development project northwest of La Grange Road and 143rd Street. The company is owned by the same family that makes the grills, which are used to prepare meals at the restaurants. Weber Grill will build an 8,500-square-foot space at the southwest corner of La Grange and 142nd Street, said Ramzi Hassan, president of Edwards Realty Co. Orland Park-based Edwards was selected by the village to develop that has been called the Main Street Triangle project. 'This is exactly the type of tenant we envisioned when we first imagined downtown Orland Park,' Hassan said in a news release announcing the restaurant's plans. 'Weber Grill represents a high-quality, experience-driven restaurant that aligns perfectly with our vision to create a dynamic, walkable destination for the community.' Planned to open next spring, the restaurant will feature indoor and outdoor seating, as well as a hands-on cooking school offering both public and private cooking classes, according to Weber Grill Restaurants. The company also has restaurants in downtown Chicago and suburban locations in Lombard and Schaumburg. 'We're thrilled to bring the unique Weber Grill experience to the new downtown Orland Park,' Jon Crost, chief operating officer of Weber Grill Restaurants, said in a news release. 'This location allows us to connect with a vibrant and growing community while being part of a visionary redevelopment that emphasizes both quality and community.' Hassan said Friday that Weber 'is a really good brand that's a household name,' and its decision to open in Orland Park could attract other tenants. He said that Weber was looking to the Orland Park market for a restaurant, but 'they were more interested in the type of development they are joining.' 'They had to find the right fit,' Hassan said. He said Edwards has been very selective about the users and businesses coming in to the development, and said the Weber Grill Restaurant could be destination drawing customers from beyond the Orland Park area. 'It's not like they have 300 restaurants all over the country,' Hassan said. Edwards plans to develop more than 140,000 square feet of entertainment, retail and office space. No residential space is planned. An expansion of Crescent Park, to be renamed Heroes Park, is included, and what is now a stormwater detention pond in the northeast corner of the triangle would be enhanced with fountains. The company and village held a ceremonial groundbreaking for the downtown project in March. Edwards owns and operates Orland Park Crossing, a retail center northeast of La Grange and 143rd, directly to the east of the downtown development. The downtown development would be situated around the Ninety7Fifty on the Park apartments, University of Chicago Medicine Center for Advanced Care, a parking garage and the 143rd Street Metra station. Hassan said he expects Edwards to break ground in spring on space for a second tenant, which would be on a site west of La Grange on the south side of 142nd.
Forbes
2 hours ago
- Forbes
Industry Energy Demand And Costs Keep Growing. Clean Energy Can Help.
A sector in a heating plant, containing a system of boilers and pipes. When New Belgium Brewing in Colorado committed to being carbon neutral by 2030, the company needed to change how it made its beer. The process of making beer requires a lot of steam, which is usually made by burning natural gas, exposing brewers to volatile price spikes. Fortunately, New Belgium found a solution with AtmosZero, a company specializing in industrial electric boilers which swap out expensive and dirty fossil fuels for clean electrons with stable prices. Industry – everything from making steel and cement to chemicals and beer – is the world's largest energy consumer, and its energy demand has soared 70% since 2000. To help protect against price volatility and cut climate pollution, industries around the world are embracing electric technologies in lieu of burning fossil fuels —also called industrial electrification—to create truly cleaner products. That's critical for manufacturers looking to succeed: Industrial producers won't remain competitive in a global marketplace that increasingly values clean products, so countries and companies that don't evolve will get left behind by those who do. Until recently, cutting industrial emissions was considered difficult because of the sector's reliance on burning fossil fuels for various processes. Fortunately, all-electric technologies—many already commercially available and ready to deploy at scale—can meet industry's heat needs without compromising performance, while providing secondary benefits including cleaner air, a stable climate, and improved worker health. Electric technologies are to poised power the next industrial revolution, but overcoming all barriers to industrial electrification requires policy leadership and industry's embrace of technological innovation. Electrifying industrial heat is the next step in manufacturing innovation Industry is integral to our daily lives, economic health, and quality of life. The industrial sector produces nearly everything in our lives—from beverages and food to paper products and plastics, and even electric vehicles and solar panels. Manufacturing uses enormous amounts of fossil fuels to create those products, making industry the largest energy consumer in the world and responsible for a third of greenhouse gas emissions. These energy demands fall into three primary categories: Process uses account for 84% of industrial non-feedstock fossil fuel use globally, and each industrial subsector requires different temperatures for their bespoke processes. Percentage of industrial process heat demand by temperature range in the European Union in 2012 Today, industries rely on burning large volumes of fossil fuels to achieve these temperatures. Subindustries within the global industrial sector and their non-feedstock energy use in 2020 Fortunately, many untapped opportunities exist to reduce industrial energy demands by improving the overall efficiency of industrial operations. This can be done through energy and material efficiency measures, as well as reducing demand for new products. However, sizable industrial heat needs require scalable technology solutions to mitigate the sector's outsized impact on climate change and air pollution. Fortunately, viable technologies and policy solutions are primed to tackle this challenge. Powering industrial heat with electric technologies and a clean grid Because electricity can be generated from carbon-free resources—like solar, wind, batteries, and geothermal—swapping electric technologies for burning fossil fuels can reduce and ultimately displace emissions. Though no one-size-fits-all solution exists for industrial heat, electrified technologies can meet nearly all industrial heating demands, including industrial heat pumps, electric boilers, thermal batteries, electric arc or induction furnaces, electric resistance heating, dielectric (radio or microwave) heating, and infrared heating. Industrial electrified heating technologies and their temperature ranges However, shifting industrial processes from dirty fuels to clean electrons requires overcoming three primary categories of barriers—economics, grid readiness, and technology maturity and awareness—with a suite of policy solutions. Primary barriers to industrial electrification and policy solutions to overcome them Electrification can deliver many long-term economic, environmental, and societal benefits, but the higher cost of electricity relative to fossil fuels in many places and the capital expenditures needed to switch to electric technologies can be a deterrent to change. In addition, the costs to connect to the grid can add expenses. Policymakers can pursue a combination of incentives to increase deployment of renewable and carbon-free electricity and create incentives to encourage clean industry and electrification. Creative financing tools will help fill market gaps, and clean heat emissions standards will help level the playing field for industrial electrification technologies, allowing them to compete with fossil fuel alternatives. Widespread industrial electrification will also require a robust and reliable electricity grid capable of supporting more demand. New capacity additions must be carbon-free, alongside new transmission and distribution infrastructure. Slow and costly interconnection processes and outmoded grid planning can prevent meaningful progress. In order to overcome grid readiness barriers, policymakers should pursue greater energy efficiency as well as flexible industrial demand. This combined with interconnection and grid planning reforms that can reduce demand on the grid, while also reducing the costs for other ratepayers. Finally, many electric technologies have been commercially available and in use in specific applications for decades, but not all have been deployed at scale or applied to traditionally fossil-fueled industrial processes. Industries, the workforce, and investors need experience with these technologies to gain confidence in industrial electrification. Government officials should support foundational research development and demonstration policies to ensure continued technology evolution and support for projects that yield cost and performance improvements across different geographies and jurisdictions. Workforce training and education programs are also necessary to attract, train, and support the people charged with their effective deployment and maintenance. Policy solutions for industrial electrification Catalyzing industrial electrification today No one-size-fits-all policy package exists to electrify the industrial sector, and each sub-industry and jurisdiction faces unique challenges and priorities. Overcoming all barriers to industrial electrification can help government officials revitalize and modernize their region's industrial base—one that is cleaner, more economically competitive, and aligned with a stable climate future.
