Medium Stay Equals High Pay

Recently, I have become extremely interested in medium term rentals. The idea first caught my attention while listening to a BiggerPockets podcast a while back. The idea sounded like less work than a short term rental (STR), making it more passive, all while still generating more revenue than a long term rental. Medium term rentals or MTRs for short, are just what they sound like, a rental that hosts tenants for a medium stay. This amount is longer than a typical short term rental but is still shorter than a standard long term rental. MTRs present quite the opportunity and I would like to share some of the benefits here in this post.

• High amount of revenue

Cash flow keeps a real estate deal alive. Every investor wants their property to perform to its highest ability while not taking a high level of work to control. The more traditional way of real estate investing of renting to a tenant for a year or more offers easier management than a STR but does not offer the same amount of revenue. This is where MTR comes in. It offers a similar but slightly less amount of cash flow but will likely be much higher than a long term rental.

• Less turnover

MTRs have less turnover than a STR because you are staying with the same tenant for a longer time period. This tenant would stay for 1-3 months as compared to 1 night with a STR. Having less turnover would create less work for you because you do not have to spend as much time finding and vetting a new tenant. Less turnover also means you will spend less on basic supplies that are required in STRs. This keeps more money in your pocket on a monthly basis.

• High quality tenants

The ideal tenant for your MTR should be a traveling nurse. These individuals are educated, working individuals who are most likely going to treat your property nicely. They more than likely will not throw a one night rager which is more likely to happen during a 1 night stay in a STR. Also, their housing is often paid for through their employer meaning you will definitely be paid if this person stays in your property.

• High demand

In most major cities across the U.S. there is a shortage of housing for traveling nurses. This is great for you as the investor because with high demand comes a higher occupancy rate. Higher occupancy means there is less time when your rental is not making money.

• Work well in urban areas

Sometimes STRs do not work well in an urban area. MTRs on the other hand work very well in urban areas where there are multiple hospitals in the area. A city with more hospitals will also have more traveling nurses who are looking to stay in a MTR.

Overall, I think medium term rentals have the potential to be a great investment. I think they offer a great opportunity that I know I will consider adding to my portfolio. I encourage any person reading this to take the time and see if a MTR will work in their own investment portfolio.