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 recovering. Some people prefer not to travel right after a major medical procedure, and may seek comfortable accommodations near the medical facility. Typically, areas that have sought after medical services or facilities would attract a similar kind of group.


• Corporate Groups: Companies often find it more economical and comfortable to house employees in furnished rentals for projects or training programs.


• People Affected by Insurance Claims: Those undergoing home repairs due to insurance claims may need temporary housing, making furnished rentals an ideal solution.


• Families: Larger furnished rentals are attractive to large families visiting extended family members and may need space and amenities that mimic a home environment.


• College Students: Jason also mentioned an increasing interest among college students in furnished rentals. This introduced additional ease and convenience in college housing, where furnishings are often included or can be added at a minimal cost. This trend is planting the seeds for future rental preferences, with students getting accustomed to the idea of not having to acquire their own furnishings for their living spaces. The implication is that this experience in college is influencing their future housing choices, making them more inclined towards furnished rentals even after college.

Each group’s unique needs make furnished rentals a versatile choice in the housing market.

Short-Term vs. Mid-Term vs. Long-Term Rental Properties

So now that you know who typically rents furnished rental properties, let’s explore how these types of rental properties compare with more traditional ones.

The landscape of property management has witnessed significant shifts, and understanding these comparative dynamics can empower property owners, property management businesses, and real estate investors to make informed decisions.

The table below offers an easy way to compare the mid-term rental properties against short-term and long-term properties:

Now that you have a better understanding of these three categories of rental properties, let’s talk about why property managers should consider managing mid-term rentals.

Should Property Managers Consider Mid-Term Rentals?

Mid-term rentals present a ‘blue ocean strategy’ for property managers. They fill a unique market gap, catering to clients like traveling professionals, medical patients, and people in transitional life phases. This market is less saturated compared to short-term and long-term rentals, offering new avenues for growth in the property management business.

Moreover, mid-term rentals offer higher profitability potential compared to long-term rentals. Property managers can charge a premium for fully furnished and flexible living options while avoiding the high turnover and maintenance costs associated with short-term stays.

Here is a list of reasons why venturing into mid-term rentals (aka furnished rentals) is a good idea for residential property management companies:

• Filling a Market Gap: Mid-term rentals cater to a diverse tenant base, bridging the gap between short-term and long-term rentals. These rentals offer a more economical option than hotels, especially for longer stays, appealing to both individual tenants and corporate groups.


• Reduced Wear and Tear: They experience less wear and tear compared to short-term rentals, leading to lower maintenance costs.


• Regulatory Benefits: Mid-term rentals often face fewer regulatory challenges than short-term rentals.


• Improved Neighbor Relations: Longer rental periods result in fewer neighbor issues due to less frequent turnovers and less disruptive behavior.


• Diverse Tenant