Cities nationwide are cracking down on short-term rentals, but savvy investors are sidestepping regulations by pivoting to midterm rentals. This strategy captures rental income without the compliance headaches plaguing traditional Airbnb and Vrbo operations.
Jeff Hurst, CEO of Furnished Finder and former president of Vrbo, calls midterm rentals the "Goldilocks" of real estate. The model targets stays between 30 and 90 days. Tenants get flexibility without long-term leases. Landlords collect higher yields than traditional annual rentals while avoiding short-term rental licensing requirements that many cities now enforce.
The economics work. Midterm rates typically fall between nightly short-term rates and annual lease rates, but volume matters. A property renting at $150 per night for short-term stays generates $4,500 monthly. A midterm rental at $2,200 monthly ($73 per night) requires less turnover, fewer cleaning costs, and minimal guest management.
Cities like New York, San Francisco, and Los Angeles have tightened short-term rental rules. Some require owner-occupancy. Others cap how many days per year you can rent. Midterm rentals dodge these bullets because they fall outside "transient" occupancy definitions in many jurisdictions.
The catch exists. Furnished Finder and similar platforms targeting midterm tenants remain smaller than Airbnb and Vrbo. Marketing reaches a narrower audience. You'll need furniture and utilities included, raising upfront costs. Tenant quality varies more than with corporate housing programs.
Insurance matters here too. Standard landlord policies often exclude furnished rentals. Hurst's platform helps connect property owners with tenants seeking flexibility, but you need proper coverage before listing.
The trend reflects real market pressure. Cities want permanent residents and stable