Mid-Term Rentals vs. Short-Term Rentals: Which Strategy is Right for You? A Smackdown!

The world of real estate investing offers a variety of rental strategies, but two of the most common approaches are Short-Term Rentals (STRs) and Mid-Term Rentals (MTRs). While both can be highly profitable, they come with their own sets of challenges and benefits.

For me, the Mid-Term Rental strategy has been a game-changer. It provided me with the consistent cash flow and stability I needed to confidently quit my corporate job and pursue real estate full-time. Beyond financial benefits, it also gave me the freedom and flexibility I desperately needed when I was going through a personal crisis—losing all my hair in 2021. During that challenging time, I couldn’t imagine dealing with the high demands of STRs. Instead, MTRs became the perfect match for my lifestyle, goals, and peace of mind.

If you’re wondering whether MTRs or STRs are right for you, let’s break down the advantages and disadvantages of each strategy so you can make an informed decision.

Short-Term Rentals (STRs)

Definition: Short-term rentals, typically booked for a few nights to a few weeks, are most commonly associated with Airbnb, Vrbo, and vacation rental platforms. They require frequent turnover and active management but can generate high nightly rates.

Advantages of STRs

✅ Higher Revenue Potential – STRs typically generate higher nightly rates compared to long-term and mid-term rentals. If demand is strong, this can lead to higher monthly income than an MTR.

✅ Flexibility in Use – You can block off dates to use the property yourself whenever needed, making it ideal for vacation homes or personal retreats.

✅ Market-Driven Pricing – Dynamic pricing tools allow you to adjust rates based on demand, maximizing profits during peak seasons or special events.

✅ Multiple Revenue Streams – You can charge additional fees for cleaning, early check-ins, late check-outs, and pet stays.

Disadvantages of STRs

❌ High Turnover & Operational Stress – Constant check-ins, check-outs, and guest communication can become overwhelming, especially if you don’t have a reliable property management team.

❌ Expensive Cleaning & Maintenance – Frequent guest turnover means more cleaning fees, increased wear and tear, and higher maintenance costs.

❌ Unpredictable Income – Seasonality, market fluctuations, and platform algorithm changes (like Airbnb policy shifts) can impact occupancy rates, leading to unstable revenue.

❌ Regulatory Risks & Restrictions – Many cities and HOAs are cracking down on short-term rentals with strict regulations, licensing requirements, and even bans.

❌ Guest-Related Headaches – Noisy guests, last-minute cancellations, damage, and negative reviews can create ongoing stress and potential conflicts with neighbors.

Mid-Term Rentals (MTRs)

Definition: Mid-term rentals cater to guests who need housing for 30 days or longer. This model is perfect for traveling professionals, corporate relocations, digital nomads, insurance claims, medical stays, and construction crews.

Advantages of MTRs

✅ Consistent, Predictable Cash Flow – With longer leases, you lock in guaranteed rent payments for months at a time, providing financial stability.

✅ Lower Turnover & Less Management – Unlike STRs, MTRs don’t require frequent check-ins, check-outs, and daily communication with guests. Fewer turnovers mean lower cleaning and maintenance costs.

✅ Minimal Regulations & Fewer Legal Risks – Since most cities only regulate stays under 30 days, MTRs avoid many of the legal battles and zoning restrictions that plague STRs.

✅ Steady Demand from Professionals & Businesses – MTR tenants are often working professionals, insurance companies, or relocation clients who respect the property and stay for extended periods.

✅ Less Wear & Tear – Fewer guests coming and going means less damage to furniture, appliances, and property compared to high-traffic STRs.

✅ Better Work-Life Balance – With fewer tenant interactions and operational demands, MTRs allow investors to enjoy more freedom and peace of mind.

Disadvantages of MTRs

❌ Lower Revenue Per Night – While MTRs generate stable income, they don’t command the premium nightly rates that STRs do. However, the reduced workload and steady cash flow often make up for it. Time IS money!

❌ Finding Tenants Can Take Time – Unlike STRs, where bookings can be made instantly, securing a mid-term tenant may require more outreach through platforms like Furnished Finder, corporate housing networks, and direct marketing and of course, CRUHomes.

❌ Less Flexibility for Owner Use – Since MTR guests commit to longer stays, you won’t be able to block off dates to use the property for personal vacations as easily as you can with STRs.

❌ Furnishing Costs – MTRs require fully furnished properties with all the essentials, from kitchenware to linens, which can be an upfront investment if you’re transitioning from a long-term rental model. Some furniture considerations that STR hosts may not have thought of include:  dressers for every bedroom, more hangers, nightstands for each side of every bed, higher quality furniture and a fully equipped kitchen.

Why Mid-Term Rentals Are My Favorite Strategy

For me, MTRs were the perfect balance between passive income and active management. STRs were simply too much work, too unpredictable, and too stressful—especially at a time when I needed stability the most.

When I lost all my hair in 2021 due to severe alopecia, I was emotionally and physically drained. The idea of dealing with constant guest messages, last-minute issues, and fluctuating income from STRs felt unbearable. What I needed was a reliable, low-maintenance income stream that gave me time to focus on my health, my family, and my future.

MTRs provided that stability.

• I could count on steady income every month.
• I had far fewer headaches with tenant turnover.
• I wasn’t constantly tied to my phone managing guests.
• It gave me the financial confidence to leave my corporate job and go full-time into real estate investing.

If you’re looking for a rental strategy that offers higher cash flow than traditional long-term rentals but without the chaos of short-term rentals, I highly recommend exploring MTRs.

Which Rental Strategy is Right for You?

If you love hospitality, don’t mind guest turnover, and want to maximize revenue during peak seasons, STRs might be a great fit—especially if you have a vacation home in a high-demand area.

However, if you value stability, long-term cash flow, and a more passive approach, then MTRs may be your best bet—especially if you’re looking for an income stream that allows you to work less while earning more.

For me, the choice was clear. MTRs changed my life, giving me the confidence to leave my job and the freedom to navigate one of the toughest personal challenges I’ve ever faced.

If you’re on the fence, ask yourself: Do I want an unpredictable but high-revenue business, or do I want a stable, scalable, and more passive income stream? The answer will help guide your decision.

No matter which path you choose, real estate investing is about creating the life you want—on your terms. If you're just transitioning from STR to MTR, download your FREE GUIDE!

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