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With the ongoing changes to short-term rental rules and regulations in various states and cities, hosts are having to adapt. For example, in Greater Sydney, properties can now only be leased for up to 180 days short-term, while cities like Amsterdam, Paris, New York, London, and recently Dallas are looking at even shorter permissible periods of 30-90 days for short-term rentals. These restrictions have shaken things up, leading many short-term rental hosts impacted by the new limits to switch from short-term to mid-term rentals instead. This helps them deal with bans on short stays while also taking advantage of demand for longer bookings.
Here are some tips to help switch over to medium-term rentals:
CHECK THE RULES ON RENTAL LENGTHS IN YOUR AREA
Short-term is usually 1-30 days. Mid-term is 1-12 months. Long-term 1+ year.
Internationally lots of cities have banned short stays but allow medium ones, either temporarily or permanently. Only time will tell if Australia is to follow this trend.
LOOK INTO TENANT RIGHTS LAWS WHERE YOU ARE
In some states, after 30 days guests get legal rights as tenants. Be clear upfront on the planned rental length.
USE A MEDIUM TERM LEASE
This legally binding agreement lays out all the terms and is more formal than short-term agreements. Hire a lawyer to ensure it follows laws. Have guests sign a detailed rental agreement covering rules, rental amount, when the rent is due, deposits and more.
EXPECT DIFFERENT TYPES OF GUESTS
Short-term draws mostly vacationers. Medium-term brings people traveling for work or other essentials.
So lower risk of parties but more need for everyday features and amenities within the property.
IS YOUR PROPERTY SUITABLE?
Look at it practically - will it really feel like a comfy home? If so, it could be a good fit. Tailor your listing for mid-term rentals. Note proximity to grocery stores and conveniences.
Highlight practical features like the dedicated workspace, washing machine and laundry facilities, fully operational kitchen etc.
PRICE COMPETITIVELY
At least 25% below the monthly short-term rate.
Though less per night, you'll get steady bookings. Mid term is more risky than long term and there will be some vacant periods. But also the opportunity to take advantage of switching between short and mid term lengths depending on the seasonality and local restrictions.
THOROUGH GUEST VETTING
Screen guests thoroughly since they'll be there a while. Get personal details, first and last month's rent. Or for extra peace of mind consider running a background or credit check.
