Which Rental Strategy Wins in 2025? LTR, MTR, STR, & CLR:

[Grant Shipman]

Hey BP Community! 👋

The rental market has evolved massively in recent years, with investors exploring new strategies beyond traditional long-term rentals. One trend that’s gaining traction? Co-Living (CLR) —but how does it stack up against Long-Term Rentals (LTR), Mid-Term Rentals (MTR), and Short-Term Rentals (STR)?

I wanted to break down the pros, cons, and key financials of each to help investors decide where the best opportunities are. Let’s dive in!

1️⃣ Co-Living (CLR): The Community-Based Cash Flow Play

📌 What It Is:
Co-living is a modern shared housing model where tenants rent private bedrooms while sharing common areas (kitchen, living room, coworking space, etc.). These setups command higher rents per square foot than traditional rentals while fostering a built-in community.

💰 Lease Duration: 3-12 months
🎯 Ideal Tenants: Young professionals, digital nomads, students
📈 Revenue Potential: +23.2% per sq. ft. over Class A studio rents

✅ Pros:
✔ Higher rental income than traditional leases
✔ Demand is growing due to affordability & flexibility
✔ Lower vacancy risk with built-in roommate replacement

❌ Cons:
✘ Regulatory hurdles in some cities
✘ Higher tenant turnover than LTRs
✘ Requires active management & community building

🔥 Investor Insight:
Co-living is an undervalued niche with major growth potential, but you need the right location and strong operational management to succeed.

2️⃣ Long-Term Rentals (LTR): The Classic Buy & Hold Strategy

📌 What It Is:
LTRs are traditional leases (12+ months) where tenants rent an entire unit. This is the most stable and hands-off strategy, making it ideal for investors looking for passive income.

💰 Lease Duration: 12+ months
🎯 Ideal Tenants: Families, individuals seeking stability
📈 Revenue Potential: Lower than STR/MTR but very stable

✅ Pros:
✔ Steady, predictable cash flow
✔ Minimal management required
✔ Less turnover = fewer vacancy costs

❌ Cons:
✘ Lower rental rates compared to STR/MTR
✘ Less flexibility to adjust rent quickly
✘ Potential eviction headaches

🔥 Investor Insight:
LTRs are great for long-term wealth-building, but if you want higher cash flow, you may need to look at MTRs or co-living models.

3️⃣ Mid-Term Rentals (MTR): The Best of Both Worlds?

📌 What It Is:
MTRs cater to traveling professionals, corporate renters, and digital nomads who need furnished rentals for 1-12 months. It's a hybrid of STR and LTR, offering higher rents without the high turnover of STRs.

💰 Lease Duration: 1-12 months
🎯 Ideal Tenants: Traveling professionals, relocation clients, medical staff
📈 Revenue Potential: Higher than LTR, lower than STR

✅ Pros:
✔ Higher rental rates than LTRs
✔ Lower vacancy risk than STRs
✔ Less turnover compared to short-term rentals

❌ Cons:
✘ Requires furnished units
✘ Market demand varies by location
✘ Management required to find tenants frequently

🔥 Investor Insight:
If you own properties in high-demand cities near hospitals, corporate hubs, or universities, MTRs can be a cash flow goldmine with fewer headaches than STRs.

4️⃣ Short-Term Rentals (STR): The High-Risk, High-Reward Play

📌 What It Is:
STRs (Airbnb, Vrbo, etc.) involve renting properties nightly or weekly to tourists or business travelers. This strategy has the highest income potential but also comes with significant regulatory and operational challenges.

💰 Lease Duration: 1-30 days
🎯 Ideal Tenants: Tourists, business travelers, remote workers
📈 Revenue Potential: Highest gross income, but variable due to seasonality

✅ Pros:
✔ Can earn 2-3X more than LTRs
✔ Owner flexibility—use the property when needed
✔ Dynamic pricing allows for revenue optimization

❌ Cons:
✘ High turnover = more cleaning & maintenance
✘ Regulatory restrictions in many cities
✘ Income varies by season and market demand

🔥 Investor Insight:
STRs can be incredibly lucrative, but watch out for changing regulations. Cities like New York, San Francisco, and Denver have cracked down on STRs, limiting their viability in some areas.

💡 Which Strategy is Right for You?

Rental Model	Lease Duration	Ideal For	Revenue Potential	Risk Level
Co-Living	3-12 months	Digital nomads, professionals	High (23.2% rent premium)	Medium
LTR	12+ months	Families, stable renters	Low-Medium	Low
MTR	1-12 months	Corporate, travel nurses	Medium-High	Medium
STR	1-30 days	Tourists, business travelers	Highest, but variable	High

💬 What’s your take? Are you investing in CLR (co-living), MTR, or sticking with LTR/STR? 

Drop your thoughts below! 👇