The Growing Opportunity of Midterm Rentals

Midterm rentals are properties rented for more than 30 days but less than a year. They are gaining attention as a smart investment strategy for homeowners and investors. These rentals have become more popular in recent years because they can bring in good money, even in today’s challenging housing market.

What Are Midterm Rentals?

Midterm rentals fall between short-term rentals (like Airbnb) and long-term rentals (leases for a year or more). These properties are rented for months at a time, often to people who need a temporary place to stay but not for just a few days. Midterm rentals became even more popular during the pandemic when many cities put rules on short-term rentals.

Who Stays in Midterm Rentals?

Midterm rentals work well for:

  • Traveling Medical Staff: Nurses and healthcare workers often need a place to stay for a few months while working in different cities.
  • Workers on Temporary Projects: Construction workers, consultants, and other professionals who travel for work prefer staying in midterm rentals over hotels.
  • Families Trying Out a New City: People who want to move but aren’t ready to buy a home might rent a place for a few months to see if they like the area.

Why Invest in Midterm Rentals?

Midterm rentals can make more money than long-term rentals. This is because people staying for a few months often pay more than those who sign a year-long lease. Plus, midterm renters are usually professionals or families, so they tend to take better care of the home.

Unlike short-term rentals, midterm rentals don’t come with as many rules and regulations. This makes them easier to manage. Since people are staying longer, there are also fewer cleanings and turnovers, which saves time and money.

What Types of Homes Are Best?

Homes with 1-2 bedrooms are often the best fit for midterm rentals. This is because most midterm renters are single travelers, couples, or small families. A two-bedroom home where one room can be used as an office is also popular. Midterm renters look for places that are comfortable and well-kept, but the home doesn’t need to be fancy.

Where Should You Invest?

The best places for midterm rentals are cities or towns with:

  • Hospitals and Medical Centers: Traveling nurses and healthcare staff often need nearby housing.
  • Big Companies and Construction Projects: Workers coming in for temporary projects look for midterm rentals instead of hotels.
  • Areas with Few Hotels: If there aren’t many hotels or the hotels are too expensive, people will prefer midterm rentals.

Examples of Good Markets: Cities like Seattle and Nashville are popular, but smaller towns and rural areas with business hubs can be great options too. Check if there’s demand by looking at how many hotels or other rental options are in the area.

Is Now a Good Time to Start?

Yes! The midterm rental market is still growing and not as crowded as short-term rentals like Airbnb. Experts say it’s like how short-term rentals were in 2012, which was a great time to get started. By investing in midterm rentals now, you can build experience and get ahead as more people find out about this type of rental.

Tips for Starting:

  • Research Your Market: Know who will be renting and why. This could be medical workers, business travelers, or families.
  • Start Locally: If you live in or near a city with a big hospital or major companies, consider starting there. You already know the area, which helps with setting prices and marketing.

Ready to Explore Midterm Rental Options in Portland?

If you’re interested in exploring midterm rental opportunities in Portland, I’d love to help! Whether you’re looking to invest or simply learn more, I can guide you through the process. Schedule a time to chat with me using my link, and let’s discuss your goals and options.

The 411 on STRs (short term rentals)!

Interested in making part of your property into a short term or vacation rental via Airbnb or VRBO? We have a great new connection for you! Melissa Wright of Short Term Rental Permits is ready to help you. If you want to know what’s possible for your property but don’t know how to get started, call Melissa!

See Melissa’s update below and find out what’s happening NOW in the world of short term rentals in Portland:

On July 30, 2014, Portland City Council passed an ordinance to allow short term rentals (STR) in Portland’s residential zones so long as the operators followed City code and obtained proper permitting. Since that time, only about 20% of STR operators have complied. Until now, enforcement has been complaint based only; meaning that a neighbor or affected party would have to call the City enforcement program to report an un-permitted host. 

In June 2019, Portland City Council passed an ordinance to remove any un-permitted STR listings posted on Airbnb and HomeAway/VRBO. After a lengthy lawsuit, the two booking platforms agreed to work with the City to allow only properly permitted hosts to post listings on their sites. HomeAway/VRBO will simply remove any listings that don’t have the proper permit number by September 30th 2019. Airbnb has created a “pass-through” system where hosts can obtain permits through the Airbnb website. The “pass-through” permit system will go live November 1st 2019. Hosts that have not obtained a permit through Portland’s Bureau of Development Services or by signing up for the “pass-through” will be removed as of January 1st, 2020.

Airbnb has agreed to share its hosts’ data with the City of Portland. This means the City will now have the name, mailing address, email address, phone number and rental address of all of the listing owners, as well as the number of bedrooms rented, the number of guests advertised for rent, the listing type (entire house, private room or shared room), the listing description and URL, the number of reservations, as well as actual dates booked and financial details. This will allow the City to enforce rules regarding the number of rooms and guests. Those who are out of compliance will be fined.

Airbnb hosts that are compliant with Type-A ASTR (Accessory Short Term Rental) permitting parameters will have nothing to worry about as they will be able to use Airbnb’s online permitting system. Any hosts that are outside of the Type-A ASTR allowances, will be removed. 

The Type-A ASTR  designation allows for two guest bedrooms to be rented to a maximum of five short term guests, and there must be at least one long-term resident living in the home full time. All hosts that rent more than two bedrooms must apply for the Type-B ASTR permit. They will NOT be allowed to use Airbnb’s online “pass-through” system. The Type-B ASTR permit allows for 3-5 bedrooms to be rented to short term guests with a maximum of two guests per bedroom. This type of permit is a Type-II Land Use Review and is a lengthy, expensive and bureaucratic process.

Melissa Wright of Short Term Rental Permits can help homeowners gain City approval for  both Type A and Type-B permits. Melissa can guide STR operators through the Type A process whether through the Airbnb site or the Bureau of Development Services. As far as Type B permits are concerned, Melissa knows exactly how to navigate the Title 33 Planning and Zoning Codes for STRs, and how to gain approval from the City of Portland for this type of Land Use Review. She has a 100% success rate at getting these approved! 

If you are currently operating a 3-5 bedroom STR business without the proper City of Portland permitting, Melissa offers a free 20 minute phone call to discuss your permitting options through her website which can be found here: https://strpermit.com/connect.

About Us:
Over the course of their professional partnership, Aryne + Dulcinea have helped over 200 clients prosper in their new lives. During this time, they have prided themselves in their top-notch selling abilities, with homes outperforming market standards, consistently exceeding list price while most of their listings sell in under 7 days. Whether you’re looking to buy or sell, Aryne & Dulcinea will work in collaboration to guide you in investing in your future and reaching your real estate goals.