Ed Neuhaus 3 Reasons I Think Medium-Term Rentals Beat Short-Term Because so many of our clients pursue a short-term (aka Airbnb) investment rental model, we are well aware that Airbnb’s slow season is either here or about to start. For that reason, we often encourage our clients to pursue a medium-term rental model during those months to maximize the effort-to-value ratio. What Is a Medium-Term Rental? A medium-term rental is usually a furnished property that rents over 30 days but shorter than a year. Related: Is Airbnb Really Ruining Rental Markets? Why Medium-Term Rentals Are the Best. 1. The medium-term rental demographic is responsible. Traditionally, people tend to think of this demographic as traveling nurses or corporate employees. While they are a big part of the space, we also find this demographic includes people thinking about getting divorced (or getting divorced) and people new to the city who are trying to figure out where they want to set down roots. 2. People that medium-term rent pay more. People will pay a premium for a well-furnished place. They will pay about 1.25 to 1.5X your average rent to get a place that doesn’t require any thought/moving/effort on their part. 3. People that medium-term rent often convert to long-term tenants. Four out of five of our last medium-term renters converted to one-year or more stays, but they continued to pay us the elevated monthly price for the entire duration of their stay. That’s the sound of more money without more work. Do you have more questions on this model or other investor models? Reach out in a comment below.
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Questions about Austin real estate? Get in touch – I’m happy to help.
