Short-term rental
Mid-term rental
Also written: MTR, medium-term rental
What Mid-term rental means
A mid-term rental (MTR) is a fully furnished property leased for extended stays typically ranging from 30 days to six months. Positioned between short-term vacation rentals and long-term annual leases, MTRs cater primarily to traveling medical staff, displaced homeowners, insurance claimants, and corporate contractors.
Formula
MTR RevPAR = Total MTR Rental Revenue / Total Available Nights in Period
How it is used
Asset managers and operators use MTR strategies to hedge against short-term rental seasonality and local transient regulatory bans. While MTRs command lower nightly rates than short-term rentals, they deliver significantly higher occupancy, lower guest turnover costs, reduced maintenance expenses, and exemption from local transient lodging taxes in many jurisdictions. Revenue managers evaluate MTR adoption by comparing the projected net operating income of month-long stays against the net blended RevPAR of daily bookings during shoulder and off-peak seasons.
Worked example
A property generating $150 per night at 60% occupancy as a short-term rental yields $2,700 monthly gross revenue. Converted to an MTR at $90 per night with a 30-day minimum stay (100% occupancy), gross revenue is $2,700. However, eliminating daily cleaning fees, platform commissions, and transient taxes increases net operating income by 22%.
Common mistake
Failing to check local tenant rights laws is a critical error, as stays exceeding 30 consecutive days often grant legal tenant protections, complicating evictions compared to short-term guests.