Major cities from New York to San Francisco have cracked down on short-term rentals through strict regulations and licensing requirements. This has pushed many landlords toward midterm rentals, a strategy that avoids the headaches of traditional short-term rental management while still generating strong returns.
Midterm rentals typically span 30 days to several months. They occupy a middle ground between short-term vacation rentals (which face heavy regulation) and traditional long-term leases (which often produce lower yields). The appeal is clear: landlords escape the constant turnover, frequent cleaning, and guest management that plague short-term rentals. They also sidestep city regulations targeting 3-day bookings and shorter stays.
Jeff Hurst, CEO of Furnished Finder and former president of VRBO, highlights this shift in the rental market. His platform specializes in furnished rentals, making midterm stays easier to manage. The strategy works across most major cities because regulations rarely target stays longer than 30 days, giving landlords legal cover while maintaining occupancy rates higher than traditional leasing.
The financial case is compelling. A property rented long-term at $2,000 monthly generates $24,000 annually. A similar unit renting at $2,500 per month for 10 midterm bookings yearly could yield $30,000 or more, depending on vacancy rates between tenants. Furniture and utilities become built-in expenses, but landlords avoid the platform fees, cleaning costs, and guest screening complexity of short-term operations.
Tenants win too. Corporate relocations, extended business assignments, and gap periods between permanent housing make midterm rentals attractive. Furnished properties eliminate the need for temporary furniture rentals or short-term hotel stays at premium prices.
The midterm rental strategy survives city crackdowns because it operates in a regulatory blind spot