Top Benefits of the Midterm Rental Strategy
Have you heard of the midterm or medium term rental strategy? As women investing in real estate look to diversify their portfolios beyond short-term and long-term rental strategies, the midterm rental (MTR) is taking over! And to be honest, we aren’t mad about it. Over here at WIIRE we are obsessed with the MTR strategy for many reasons. Let’s take a look at the top benefits of the MTR strategy!
First and foremost, what is a midterm or medium term rental?
Midterm or medium term rentals refer to leasing arrangements that fall between short-term and long-term rentals, typically with a duration of a 30+ day stay. These rentals can span anywhere from a month to several months, offering a flexible housing solution for individuals, groups, or families.
Traveling nurses often find medium term rentals to be an ideal solution for their temporary housing needs during their work assignments. MTRs are also perfect for nomadic or remote workers, corporate housing, and insurance claim relocations. MTR accommodations offer more rental flexibility with the stability and comfort of a home-like environment.
Here are the top benefits of the midterm rental strategy:
1. Double Your Rental Income
With the MTR rental strategy you can potentially double your rental income, yet you don't have to double the amount of work you do! For example, if you want to increase your rental income using the short-term rental strategy, you have to factor in hundreds of turnovers each year. That’s a lot of work! On the other hand, a midterm rental stay for a traveling nurse is typically 90 days, which averages to 4 tenants a year. We love less work for the same return :)
2. Low Level of Wear and Tear
As mentioned, many MTR tenants are travelers coming for work purposes. Some may pick up a work assignment that’s 3-4 hours away from their home. When this happens, they may stay in your property for 3-4 days during the week and then return home for the rest of the time. This means they are only living in your unit part time (this is especially true in the Midwest). Not to mention, when they are staying at your property, they are typically working long shifts and barely even home. Some travelers don't even have time to cook because of their long, grueling shifts. I once had a tenant who discovered their gas stove wasn’t hooked up 5 weeks into their stay! They weren’t using the kitchen at all. Lastly, you don't have to worry about additional guests because MTR tenants are typically new to the area and don’t know a lot of other people. The less people and time spent in your unit equals less wear and tear. That is good news for real estate owners and investors!
3. Higher Quality Tenants
It takes a certain level of responsibility to be a traveling nurse or technician. You have to have a certain degree, work ethic, and professionalism, which are all great traits for tenants. This means there is typically a built in level of quality in the midterm rental tenant pool. These types of tenants are more likely to treat your unit with respect and communicate. Since these travelers are only in one place for 13 weeks and usually don’t know anyone in the area, you don’t have to worry about noisy guests or parties. We have found that our MTR tenants usually eat, sleep and work. That works for us!
4. Ability to Capitalize On High Seasons
If you are in an area with a high tourist season, you can make even more profits by using your property as a short-term rental (STR) during your highest season. Then in the lower or off-seasons, you can market your property as a midterm rental. This maximizes your income while minimizing the time and energy needed from you as a host. The flexibility that the midterm rental strategy offers is second to none. So if you’re on the fence, you don’t have to pick just STR or MTR, you can do both!
Remember, a successful midterm rental strategy focuses on providing value, convenience, and a positive experience for your renters while ensuring your business or property remains profitable and sustainable. Will you give it a try?
Want to Learn more about The Medium Term Rental strategy?
Check out our course on the MTR Profit Academy
Grab our MTR Starter Guide Freebie
Sign up for our MTR Bootcamp Waitlist
Head to our podcast on Apple or Spotify, Women Invest in Real Estate, where we talk all about midterm rentals!
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