Major cities are cracking down on short-term rentals, forcing property investors to pivot toward a middle ground that regulators have largely left alone: midterm rentals.
Midterm rentals, typically spanning 30 to 90 days, occupy the sweet spot between traditional long-term leasing and heavily regulated short-term vacation rentals. Cities from New York to San Francisco have implemented strict caps on Airbnb listings and three-day minimum stays. These restrictions squeeze short-term rental operators but miss midterm properties entirely.
Jeff Hurst, CEO of Furnished Finder and former president of VRBO, explains the appeal. Midterm rentals generate higher yields than traditional leases while avoiding the regulatory scrutiny crushing the Airbnb model. A furnished apartment rented for 60 days commands premium rates compared to a standard 12-month lease, yet falls outside most municipal short-term rental ordinances.
The strategy works because regulators specifically target properties with constant guest turnover, noise complaints, and parking headaches. Midterm tenants stay long enough to behave like permanent residents. Landlords experience fewer turnovers than short-term operators but pocket rents 20-40% above market rates for furnished, move-in-ready units.
This shift creates real opportunities for property owners sitting on vacant or underperforming assets. Remote workers, corporate relocations, and traveling professionals fuel demand for furnished month-to-month arrangements. Platforms like Furnished Finder connect these tenants directly with property owners.
However, the model requires upfront investment. A vacant apartment must be furnished, cleaned, and managed professionally to justify premium pricing. Landlords also navigate ambiguous regulatory territory, as some cities remain unclear whether midterm rentals fall under short-term rental restrictions.
The data supports the trend. Markets that banned short-term rentals saw mid