Mid-Term Rentals Have a Bright Future—But Many Investors are Spooked By the Practical Difficulties

Is a Mid-Term Rental Right for You?

Demand for mid-term rentals is growing rapidly, with an astonishing 94% increase for 30+ day bookings in the U.S. year over year in 2023, according to Key Data. This rental market segment is not yet oversaturated. 

If you are prepared by carefully researching your mid-term location and the heavy initial investment in operational logistics and higher-quality furnishings, you will be rewarded with impressive ROIs and, in many cases, zero vacancy. Rentals in this category that get everything right are often booked up continuously, providing a steady stream of income and improving your overall cash flow. 

There is one big but: If you do not have enough starting capital to create a competitive mid-term rental, it is best to stick to more traditional rentals or explore other real estate investing avenues. 

Where mid-term investors often fail is when they start trying to cut corners. That will cost you here in a way that just won’t with a traditional rental. A family settling in somewhere for five to 10 years will invest in their own comfortable mattress and might just replace the bathroom fixtures they dislike if it really matters. A mid-term renter will not—unmet expectations and perceived poor quality often lead to disputes, leases broken prematurely, and those dreaded bad reviews. 

How much money do you need to successfully furnish and operate a mid-term rental? Think in the ballpark of furnishing your own home, preferably on the more luxurious end of the spectrum of what you are prepared to pay. 

There’s Another Way to Invest

If that sounds like it’s too much right now, it probably is. Luckily, you do have other options, like Connect Invest short notes, which you can invest in with as little as $500. With investment durations of six, 12, or 24 months and interest yields of as high as 9%, you can experience the immediate financial growth enjoyed by mid-term rental investors—just without the hefty initial cost for you.