MTR vs. STR

[Leon Lee]

Hi BPers! 

I have some short-term rentals, and occasionally, a few of these have turned into mid-term rentals when rented out for several months. I appreciate the ease of management that comes with mid-term rentals, but I have some concerns. For one, the rental income tends to be lower than with short-term stays due to the necessary discounts, yet we still face most of the usual costs, aside from savings on cleaning and supplies. Additionally, each deep clean after a mid-term stay costs around $300 or more, which almost negates the financial benefit of the mid-term rental model. Repairs after tenants move out also are significantly higher. 

I'm curious about everyone's thoughts on the pros and cons of mid-term rentals versus short-term rentals. profit margin on STR is getting thinner, and I'm interested in exploring other strategies. I'd love to hear from those with more experience to see if my observations align with yours and if there are tips for managing costs or maximizing the benefits of mid-term rentals.

Thanks!

Lee

[Justin Brickman]

I start off all my rentals as STR to build up reviews and then covert them to midterm. Not sure how midterm does in other areas, but it has been an amazing strategy for me (allowing me to save money on PM and decreasing the turnover and potential issues with HOA or neighbors). If you can put the right systems in place and the market makes sense, I think it's an easy choice for most investors