Pricing Rents for Midterm Rentals

[Rae Targos]

Hi All,

I'm currently looking for a property to turn into a midterm rental in 2 different markets.

Both agents I'm working with are investor-friendly, but one has no experience with MTR and the other tells me I can charge 25% more for MTR.

With that pricing strategy, the properties I've looked at so far will actually yield better cashflow as an LTR. For example, one property we looked at would rent for $1100 per unit LT, but around $1300 for MT -- but utilities will be more than $200 per month. 

Unfortunately, there aren't any good comps on Furnished Finder. Many of them are a bedroom in an owner-occupied residence or a co-living type situation.

How do you price your midterm rentals? I'm beginning to think I can charge more than 25% extra.

[Ron Brady]

We look at extended stay hotels rates and on Airbnb.  With extended stays, we pick the service level at which we seek to compete, e.g. Extended Stay America v Residence Inn by Marriott. On Airbnb, we search in our area for stays of no less than 30 days with all the amenities we offer--location, parking, number of bedrooms, etc.  Using all of the data above, we price our offerings at the point in the market where we think our value proposition is the highest.  It has worked so far, but we have so few that it's possible we've just been lucky, versus actually skilled, so far. Thus we ask that you take the above information with the appropriate grain of salt.