Short Term Rental and Mid Term Rental Insights for Owners/Arbitrage

09/01/2025

Quick Tip.
Use your Airbnb listing to create a Booking .com listing.

03/01/2025

15/10/2024

A reminder that anyone who has an LLC MUST report beneficial ownership by the end of the year or within 90 days of creating it if you set the LLC up this year. Here's a link to the official site.

Secure .gov websites use HTTPS A lock () or https:// means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.

12/09/2024

It might not be as easy as you think to make a mid term rental profitable especially in the first 12 months. With mid term rental vacancies can be measured in weeks or months and not days as they are with a short term rental. This example shows the difference in being 83% occupied (10 months) with 75% occupied (9 months) in the first year of running the property including setup costs. If your setup costs or running costs are higher then depending on the income you get it could take much longer to show a profit. In the example about a week over 9 months occupancy is effectively your first year break even point and if you get 8 or less months occupancy the loss becomes challenging. If you own the property then at least you have other tax write offs that help alleviate this but if you are doing rental arbitrage then its a killer.

30/08/2024

A thought. Is there any real difference between short term rental and mid term rental? Both are furnished and utilities are included. Anyone with a short term rental has always been able to take a month or longer booking and many do eg in the winter when snowbirds stay for 1,2 or 3 months. Yes mid term rental may be 30 days minimum either by design or forced but equally someone with a short term rental can set the minimum days to book. I set mine at 2 days, 5 days and 28 days depending on the time of the year. So why not simply say we have Furnished Rentals or Vacation Rentals and they can be as flexible for booking as we want or the hoa/town/city allow them to be. Now think about the real differences between mid term rental and long term rentals especially with some mid term owners now taking on 12 month or longer stays. Mid term and Long term seem to be getting closer and closer to each other and now mid term owners are worrying about the type of lease they need, concern over squatters, credit and background checks, how you get paid, evictions, etc, etc. Even the guest has now become the tenant! Is the only difference now with a traditional long term rental that the property is furnished and utilities are included? It seems that some property owners originally attracted to the income potential of airbnb and short term rental are now having to look at longer length bookings to survive the slow months and being dragged towards a long term rental landlord mindset which is very different to the mindset of running a vacation rental.

See our discussion page:
https://www.facebook.com/groups/1788778941653549

16/08/2024

We have just started a new discussion group where we hope hosts will be able to discuss all things STR and MTR that are relevant to them. No hype or sales pitch, just chat about the truth and myth of STR/MTR and hopefully answers to help overcome some of the challenges that hosts face
https://www.facebook.com/groups/1788778941653549

15/08/2024

Some Mid Term Rental Myths.

02/08/2024

Understanding the effects of vacancy on your Short Term Rental (STR) or Mid Term Rental (MTR)
Let’s say you get on average 75% occupancy over the year.
STR will give you an average of 22 to 23 days booked each month with 8 to 9 days vacant. Obviously some months will have more bookings than others due to high and low season but this is an average over the year.
MTR will give you on average 9 months booked in the year so 3 months could be vacant. MTR in most places is not really effected seasonally but to try and fill 1 to 3 month bookings all back to back while not impossible is a challenge. You will likely have weeks/months vacant.
With STR even in very slow months you can except to get some money coming in each month to go towards covering your costs.
With MTR you could get a month or more where you have no income at all and you have to cover all of your costs. Do you have enough in reserves to do this?
My guess is that a lot of STR owners are wanting to switch to MTR because they are struggling to get bookings and so they think MTR will save them.
For other STR owners who perhaps have been caught in the minimum 30 day rental rule then the choice is MTR or LTR. Long Term Rental with the right tenant can of course generate steady income each month with no vacancies but has its own challenges.
It’s important to understand the financial effects of vacancies for each rental model.

30/06/2024

For those considering taking direct bookings and not sure where to get started regarding drawing up a rental agreement or what guest rules to include then I'm happy to provide one that I currently use for MTR and its free! Change/add/remove from it as required but of course always make sure that your rental agreement meets the requirements of your state/city. Also before you rent out your property as a STR or MTR you must check whether you need permits or inspections and what other requirements you may have to adhere to in order for your property to be legal.

Message me or post your name below for a copy of the rental agreement.

12/06/2024

For those considering Mid Term Rental - Estimating the potential profit over a 12 month period.

30/05/2024

This video is aimed at those hosts who are considering listing their property on Airbnb and shows how quick and easy it is to do.

10/04/2024

Keyless entry. Not only do I have a wifi keypad lock on the front door of our properties ( I use Lockly Vision or Lockly Secure Pro ) but I also have a keypad lock on a closet door where cleaning supplies and other items can be securely stored. The cleaner has an access code so no need for them to have a key. Also its essential if using a keypad on the front door that you have a backup key and the best place to keep that is in a lock box either on the front door itself or nearby. Keypads can fail, maybe the battery or keys on the pad fail. I like this Kingsley slim lock box as its not as big and clunky as other lock boxes and can easily store 2 or 3 keys. A quick search online will pull up a good selection of closet keypad locks and lock boxes.

13/03/2024

This simple and free Airbnb revenue estimator from Awning is a great tool to help you get an idea of the STR potential on any property.

Calculate the revenue, ADR, occupancy and seasonality for any property with this Airbnb estimator for free. Browse nearby active Airbnb’s with historical earnings.

17/01/2024

New project for 2024. Just went pending on this property on the Mississippi Gulf Coast. House and 2 apartments on just over an acre and only a few minutes walk to the beach. Yard is overgrown and needs clearing. As with any investment property we are now doing due diligence, checking zoning, permits, etc. If all goes well we will close the end of Feb and have it up and running for the spring. Considering mid term/long term rental for the apartments and short term for the main house. There is future potential to build another couple of houses on the plot. Will give updates as we progress with this project.