Benefits of Mid-Term Rental Strategy in St. Petersburg, FL (Data-Backed Insights)

[Calvin Pringles]

Hey BiggerPockets community!

I've been diving into the mid-term rental market in St. Petersburg, FL, and wanted to share some insights on the benefits of this strategy. For those unfamiliar, mid-term rentals typically involve leases ranging from one to six months, bridging the gap between short-term vacation rentals and traditional long-term rentals.

Benefits of Mid-Term Rentals in St. Petersburg, FL:

1. Higher Rental Income: Mid-term rentals often generate higher income compared to traditional long-term rentals. According to data from Airdna.co, the average monthly rent for a mid-term rental in St. Petersburg is $2,400, whereas traditional long-term rentals average at $1,500.
2. Lower Vacancy Rates: St. Petersburg has a growing population of remote workers, students, and seasonal visitors who seek flexible housing options. With a diverse tenant pool, mid-term rentals experience lower vacancy rates, which means more consistent cash flow.
3. Less Wear and Tear: Unlike short-term rentals, mid-term tenants typically stay for longer periods, resulting in less frequent turnovers and reduced wear and tear on the property. This can lead to lower maintenance costs over time.
4. Favorable Local Regulations: St. Petersburg has implemented strict regulations on short-term rentals, but mid-term rentals remain relatively unrestricted. This allows property owners to take advantage of the benefits without facing the same regulatory hurdles.
5. Diversified Investment Portfolio: Incorporating mid-term rentals into your investment strategy can help diversify your real estate portfolio, reducing risks associated with market fluctuations or changes in local regulations.

Data to Support Mid-Term Rental Strategy:

• According to the St. Petersburg Area Economic Development Corporation, the city has experienced a 20% increase in remote workers since 2020, creating a demand for flexible housing options.
• Visit St. Petersburg/Clearwater reports a 35% increase in visitors during peak season compared to the previous year, further driving demand for mid-term rentals.
• A study by Florida Realtors Research Department indicates a 5.6% increase in rental rates for mid-term rentals compared to the same period last year.

If you're considering a mid-term rental strategy in St. Petersburg, FL, these benefits and data-backed insights should help you make an informed decision. I'd love to hear your thoughts and experiences with mid-term rentals in this market or any other insights you may have. Let's discuss!

Happy investing!

[Josh Green]

@Calvin Pringles

Mid-Term rentals definitely are an untapped market basically all over Pinellas county and even Hillsborough county. There's definitely a cost/benefit reason to this when comparing to a short term rental. For example, the gap in revenue produced is much smaller the smaller the subject unit is. A studio, 1bd, and 2bd unit for example could present a strong case to do a mid term rental rather than a short term.

On the other hand, a house typically will make more as a STR. In both cases, furnishing and utilities paid by owner are expected and if you're hiring a PM, it makes more sense to maximize revenue.

Now, some of my clients may be house hacking or self managing. This is when it could be worth a mid term route vs short term route for the time savings. I personally have a house hack that I've been doing this in and I do mixed occupancy of short and mid term to maximize the revenue + occupancy.

I think this is why there aren't a ton of midterm rentals out there compared to short term because in many cases the short term benefits outweigh the mid term.