Medium-Term Rentals: in NYC Navigating the Perfect Path in the Rental Market Maze

[Maurice W. Evans]

Medium-Term Rentals in NYC
Navigating the Perfect Path in the Rental Market Maze
Photo by Jose Alonso on Unsplash

Medium-term rentals may be the goldilocks solution for property owners — not too short, not too long, but just right.

Hi, I’m Maurice, a seasoned property manager in the heart of Brooklyn, operating alongside my wife to manage 25 units in this vibrant city. Given my years of experience in the rental market, I’d love to shed some light on a topic that has been gaining momentum — medium-term rentals.

Today, let’s delve into how you, as a property owner in New York City, can explore this golden opportunity and benefit from professional management in the evolving rental landscape.

Rentals Evolved

The New York City rental market, much like the city itself, never sleeps. However, it’s also a market that evolves rapidly, with the advent of Local Law 18 bringing about a seismic shift in the realm of short-term rentals (STRs). This law, aimed at ensuring safety and fair practices, has inadvertently unveiled a treasure trove of opportunities in the form of medium-term rentals.

Now, picture STRs and long-term rentals as the two extremes on a balance scale. On one side, STRs pose constant turnover, a heavier toll on property wear and tear, and a more demanding compliance environment due to Local Law 18. On the opposite end, long-term rentals can potentially lock you into a troublesome relationship with a challenging tenant. So, where’s the sweet spot? Welcome to the world of medium-term rentals, perfectly balanced in the middle, like a fulcrum on that scale.

The Sweet Spot

Medium-term rentals typically span between one to six months, appealing to a diverse crowd, often professionals temporarily relocating for work. Imagine a traveling nurse, a corporate hotshot on a project, or a movie producer scouting locations. They crave a place that offers the comfort of home, rather than the sterility of a hotel room.

As landlords, these rentals offer an escape from the regulatory labyrinth of STRs while securing a dependable income stream. With professionals as tenants, who often have their companies backing them, the rent check is almost always on time. It’s like signing a superstar athlete to your team for a season — they perform, they add value, and when their contract is up, they move on without any fuss.

New Waters

Navigating these waters can be complex, which is why having an experienced property manager becomes invaluable. Picture us as your trusty GPS, guiding you smoothly on this new journey, avoiding any potholes or roadblocks. We ensure your property is attractive, well-maintained, and sought after by these professionals. From marketing your property effectively to vetting potential tenants and arranging for regular cleaning services, we’ve got you covered.

Let me share an illustrative story. We have a client, a property owner with a charming apartment in Brooklyn, who was previously operating it as an Airbnb. The constant need for cleaning, maintenance, and communication with guests, coupled with the implications of Local Law 18, made him contemplate an exit from the rental market.

When we stepped in, we suggested transitioning to medium-term rentals. We are now listing his property, and reaching out to our network of professionals. The goal is to help our client savor a steady income, fewer turnovers, and lack of STR regulations worries. In essence, a win-win scenario!

For landlords considering this venture, here are a few pro tips:

1. Property Appeal: Ensure your property is up-to-date, well-furnished, and located in a desirable area. Professionals on the move prefer a home-like experience.
2. Laws and Regulations: Make sure you comply with all local laws and regulations regarding medium-term rentals. Consult with a property manager if you need clarity.
3. Choose the Right Manager: Opt for a manager with expertise in medium-term rentals. They should have a keen understanding of marketing strategies and the nuances of local laws. They are like the coach of your team, guiding your property through the championship season.
4. Proper Documentation: Ensure that you and your property manager have a comprehensive agreement in place. This includes explicit rights to sublease and the division of income. As they say, good fences make good neighbors — and clear contracts make for good business.
5. Insurance: Always have a comprehensive insurance policy in place. This is your safety net, and should not be overlooked. Think of it as your sturdy umbrella, always ready for that unpredictable storm.

Goldilocks Opportunity

The shifting sands of the rental market in NYC offer challenges, yes, but they also provide opportunities for those willing to adapt. Medium-term rentals have emerged as the modern solution to the age-old quest for stable, manageable, and profitable property rentals.

In this evolution, having a professional by your side is not just beneficial, it’s crucial. We’re here, ready to manage your property with skill and dedication, ensuring you can reap the benefits without getting lost in the minutiae. After all, the beauty of NYC lies in its dynamism, and just like the city, we are always on the move, ready to conquer the next challenge.

Medium-term rentals may be the goldilocks solution for property owners — not too short, not too long, but just right.

By harnessing the right strategies and expertise, you can transform your rental property into a profitable, stress-free venture that thrives in the heart of NYC.

So, why wait?

It’s time to dive into the realm of medium-term rentals and discover the untapped potential that awaits.