Maximizing Profits with Mid-Term Rentals: Property Management Blue Ocean Strategy – Part 1



Welcome to The Property Management Show podcast, where we delve into the ever-evolving landscape of property management, entrepreneurship, and marketing.

This show is presented by Fourandhalf Marketing Agency. Since 2012, Fourandhalf has been helping residential property managers get more owner leads by helping with their website, SEO, online reputation, video and blog content, social media, and paid ads.

For this podcast episode, we were fortunate to have Jessica Schirmeister and Jason Zimmerman from Trend Property Management in Texas join us for this discussion. With their extensive experience in the field, they brought a wealth of knowledge, particularly in managing and optimizing mid-term rental properties. Their insights are especially relevant for real estate investors and property managers looking to expand their portfolios and increase profitability.

As you can imagine, there was a lot of information to unpack which is why we divided the interview into two episodes. This is Part 1, where we explore the rising trend of mid-term rentals and their advantages over traditional rental models.

Understanding Mid-Term Rentals

With economic and regulatory factors pushing both short-term and long-term rental property owners and managers to panic, it makes sense to start looking for more lucrative and sustainable alternatives in the market. This is where mid-term rentals come into play, offering a sweet spot between short-term and long-term rental properties. But what exactly makes a rental, well, mid-term?

What is a Mid-Term Rental Property?

Traditionally, short-term rentals are fully furnished properties renting for less than 30 days, whereas long-term rental properties are typically unfurnished and covered by a 12-month lease. Mid-term rentals are those that fit somewhere in the middle — fully furnished properties that can be rented for 30 days up to a year.

If you’re a bit confused, you are not alone. I (Marie) was confused as well. You see, the label “mid-term” makes it seem like the term or the length of the lease defines what category the rental property belongs to. But if a mid-term rental can be rented for up to a year, then doesn’t it fall under the long-term rental category? According to our guests, that is a “no”.

As it turns out, even they don’t like using the label “mid-term rentals”. Instead, they prefer the label “furnished rentals”. This is because lease duration can easily be shifted, but renting a property as furnished vs. unfurnished offers a clearer way to categorize them.

Now you might be thinking, who would want to rent a furnished house anyway? Don’t people typically have their own stuff to fill a house with?

Let’s dive deeper into this.

Who Typically Rents Furnished Rental Properties?

In the world of furnished rental properties, the tenant pool is as diverse as their reasons for renting. From this podcast interview, we learned that furnished rentals are a hit among various groups — and despite what you may have heard before, it’s not just for travel nurses anymore!

Here’s a rundown of who these tenants are and why they choose furnished rentals:

* Traveling Professionals: Often on temporary assignments, these individuals prefer furnished rentals for their convenience and home-like feel compared to hotels. Yes, travel nurses fall into this category. But so do film crew, actors, and even digital nomads.

* Individuals in Transition: People relocating or in transitional life stages choose furnished rentals for their flexibility and the ease of not having to move furniture.

* Patients and Medical Visitors: In areas like Rochester, MN near medical facilities such as the Mayo Clinic, patients and their families opt for furnished rentals for the duration of medical treatments and even as they are ...