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What Are Mid-Term Rentals, and Why Are They Growing?

阿蓝聊民宿 · Snowball Rentals · 2024-07-05

Original suitcase-and-café editorial photograph, not the Bellevue case property.

Hello, and welcome to Snowball Rentals’ WeChat account, where you can read about recent developments in the US short-term rental market. Airbnb has long become a preferred source for people seeking authentic experiences and good-value vacations.

In the United States, homeowners know about long-term rentals measured in years and Airbnb short-term rentals measured in days.

But there is another option that earns more than long-term rentals and takes less effort than short-term rentals: mid-term rentals.

These generally involve leases of around 1–3 months. They may be renewed; some guests even stay for more than a year.

This is a valuable rental opportunity that most homeowners do not know about. Today, we will uncover what mid-term rentals are!

First, why is there such substantial demand for stays of 1–3 months?

There are three main reasons:

The first and biggest reason is that US rental homes do not come furnished: tenants need to bring their own furniture. Mid-term tenants need a rental that is ready to move into with their luggage.

Moving labor is particularly expensive in the United States. A move costs thousands to tens of thousands of dollars. For a stay of only 2–3 months, the cost of moving furniture in and then out again—two moving bills—can far exceed the rent.

Second, these guests do not need to stay for a year. They generally choose a mid-term rental because they need a temporary home.

For example, someone may be traveling for a two-month work project, or may be unsure how long they will stay. Someone renovating their own home may need a nearby mid-term rental with a flexible lease so they can extend the stay if the renovation is delayed.

Third, traditional hotels do not meet this need. The biggest distinguishing feature of a mid-term rental is that it has a kitchen and living room beyond what a hotel offers, as well as several additional bedrooms and bathrooms.

The extra space suits families. For American families accustomed to large homes, having a family of four squeezed into a hotel for several weeks is difficult to bear.

To sum up, a mid-term rental is a family-oriented rental home that is ready to move into, and its growth has become stronger year after year in recent years.

As a homeowner, you may now be wondering: my home is quite good, but how much could it earn on Airbnb? Would it earn more than a long-term rental? Would it involve a lot of trouble?

If you:

Hope to increase rental income through short-term rentals;

Cannot spare a great deal of time to handle the small details;

Occasionally need to use the home yourself, making it unsuitable to empty out the furniture for a long-term rental;

Then:

Snowball Rentals’ management team is your best choice.

From pre-launch vacation-rental styling, big-data analysis and online marketing to tenant screening, dynamic pricing, customer service and sales, cleaning and repairs, Snowball Rentals provides everything as one complete service for your home.

This Week’s Booking Results

Through long-standing relationships with insurers, assignment companies and technology companies, Snowball Rentals rents homes for medium- and long-term durations at short-term rates, then gives owners a rebate of 5% in management fees to maximize their income.

Winter is the low season for Seattle’s short-term rental market, especially in 2023. Some recent large bookings, however, have been like a ray of sunshine, giving us high hopes for Airbnb’s performance this summer!

For the following detached home in Bellevue, Zillow shows an estimated long-term monthly rent of about US$8,942.

The owner placed considerable trust in the Snowball Rentals team and entrusted us with short-term rental operations. Good results came shortly after the home was listed.

Rental income rose from US$20,865 to US$42,296.85!

As shown in the booking screenshot below, the guest booked 70 nights through Airbnb. Almost without noticing, a short-term rental became a mid-term rental.

At Zillow’s estimated long-term monthly rent of US$8,942, 70 nights would produce about US$20,865 in rent.

This booking’s rent plus cleaning fees totaled US$42,296.85!

In summary, after Snowball Rentals operated this property, rental income for 70 nights rose from US$20,865 to US$42,296.85—more than double.

More importantly, the owner does not have to worry about maintenance or cleaning. When something needs to be discussed with guests, we also help with communication and oversight.

After Airbnb’s downturn in 2023, we at Snowball Rentals hope to help owners regain ground in summer 2024!

Once again, heartfelt thanks to our homeowners for their trust and support. Whether the market is strong or weak, Snowball Rentals will stand with you and look for ways to increase your income!

Some homeowners will surely ask the hard question: was a large booking like this just a stroke of luck? What if the home does not rent? A long-term rental is more stable—even earning less is better than earning nothing!

Our answer is: the outcome depends on what we do.

Vacation-Rental Styling

Competition on Airbnb is becoming increasingly intense. The days of piecing together secondhand furniture, taking phone photos and earning easy money on Airbnb are over. Airbnb hosts have moved toward professional operations.

Careful design and furnishing before launch, followed by professional short-term rental operations, will be the only choice for a rental that continues to generate high income.

Here is another of Snowball Rentals’ core services: vacation-rental styling!

Take the home described above as an example. Before furnishing, it was simply an empty house. After our careful furnishing, its appearance changed as shown below:

If you would also like to make your home more attractive and earn more rent, please contact us at any time!