4 Signs It’s Time to Turn Your Property Into a Mid-Term Rental

When you first purchased your rental property you pictured yourself sipping margaritas on the beach as passive income flowed into your bank account month after month. But after taking into account taxes, insurance fees, tenant turnover, mortgage payments and repairs, you aren’t being left with much. The good news is, the ROI you’ve always dreamed of is possible with a few tweaks. Unlike short-term vacation rentals which can be rented out for just days at a time, mid-term furnished rentals are rented out for a period of three months, six months, one year or more. When furnished with high-end décor, premium appliances and upscale fixtures, these homes can attract top-quality tenants such as working professions moving to a new locale for a project, or family members visiting locals from abroad. Landlords can usually ask 15 to 20 per cent more for a furnished long-term rental compared to an unfurnished one.

If you’ve ever rented your property out on a vacation rental by owner website, you know it can be quite the hassle to turn new tenants over every few days. Dealing with cleaning and maintenance, disrespectful and noisy tenants and the uncertainty of whether all of your openings will be booked ahead of time can be emotionally exhausting. When you rent your property out to someone who has signed a contract for a period of three months to one year or more, you’ll have peace of mind knowing your expenses will be covered (and then some) for a given period of time. Mid-term tenants are also more likely to treat your home and the surrounding community with respect.

When travel came to a screeching halt at the outset of the COVID-19 pandemic, hotels and short-term vacation rentals took a blow. But demand for mid-term rentals stayed strong. Doctors and nurses needed temporary housing separate from their families to prevent virus transmission, and individuals who lost their jobs or decided to sell their homes needed a temporary home while they planned their next move. While vacation rentals can be lucrative, mid-term rentals offer more stability for landlords during tough times.

Depending on where you live, having a permanent long-term tenant in your home may prevent you from being able to undertake renovations. In many Canadian provinces, for example, a property owner isn’t allowed to evict a tenant purely for renovation purposes, and must wait until the resident leaves to enter the suite and make updates. If you want the freedom to be able to make minor and major renovations to your space in between tenant contracts, then a three to six month, or one year mid-term rental could be perfect for you. Those renovations will increase the value of your property, allow you to fairly increase rents and will keep it in top condition for the next tenant.

Are you ready to embark on your journey as a mid-term rental property owner? Head over to Uphaus.com to list your property and connect with thousands of qualified tenants today.