30-Day Stay

1. MTRs: The Sweet Spot of Real Estate Investing

A medium-term rental, also known as a month-to-month rental, executive rental, or a traveling nurse rental, is a furnished unit rented out thirty or more days at a time.

MTRs bridge the gap. Medium-term rentals (MTRs) offer a compelling middle ground between short-term rentals (STRs) and long-term rentals (LTRs), combining the higher revenue potential of STRs with the stability and reduced management demands of LTRs. This strategy involves renting out furnished units for 30 days or more, catering to a diverse range of tenants seeking temporary housing solutions.

STRs vs. LTRs vs. MTRs. While STRs target vacationers with nightly rates, they often face stringent regulations and high turnover. LTRs, on the other hand, provide stable income but typically offer lower cash flow and require more extensive maintenance between tenants. MTRs sidestep many of the regulatory hurdles faced by STRs while commanding higher rental rates than traditional LTRs, making them an attractive option for investors seeking to maximize profits.

The MTR advantage. The MTR strategy is particularly appealing in cities where STRs are restricted or outlawed, providing a viable alternative for investors who want to capitalize on the demand for furnished rentals without the regulatory headaches. By focusing on longer stays, MTRs also reduce the frequency of tenant turnover, minimizing cleaning and administrative costs.

2. Target Tenants: Beyond the Tourist

With MTRs, we get some great tenants of a wide variety.

Diverse tenant pool. MTRs attract a wide range of tenants beyond the typical tourist demographic, including traveling nurses and doctors, executives on short-term assignments, digital nomads seeking temporary housing, and individuals displaced due to renovations or natural disasters. This diverse tenant base provides a stable and reliable source of income for MTR investors.

Traveling nurses are ideal. Traveling nurses, in particular, are a highly desirable tenant group for MTRs, as they often require furnished housing for 13-week assignments and are typically reliable and responsible. Other potential tenant groups include professors, scientists, and business professionals in town for short-term projects or training programs.

Catering to specific needs. By understanding the needs and preferences of these target tenant groups, MTR investors can tailor their properties to attract high-quality renters and maximize occupancy rates. This may involve providing amenities such as high-speed internet, dedicated workspaces, and comfortable furnishings.

3. Regulations: MTRs Fly Under the Radar

In most markets, renting more than thirty days puts you in the long-term rental category in the eyes of the city.

Regulatory arbitrage. One of the key advantages of the MTR strategy is its ability to operate in a regulatory gray area, often falling under the same rules as long-term rentals while avoiding the stricter regulations imposed on short-term rentals. This allows MTR investors to capitalize on the demand for furnished rentals without the constant threat of regulatory crackdowns.

Navigating local laws. While MTRs generally face fewer regulatory hurdles than STRs, it's essential to understand and comply with local laws and ordinances. This may involve obtaining a low-cost, straightforward license or adhering to specific safety and building codes.

Flexibility and adaptability. The MTR strategy offers greater flexibility and adaptability compared to STRs, allowing investors to pivot their business model in response to changing regulations or market conditions. By focusing on longer stays, MTRs can also build stronger relationships with tenants and create a more stable and predictable income stream.

4. Financing Freedom: Creative Strategies Beyond W-2s

If you have a good enough deal, you can find a way to fund it.

Beyond traditional loans. Securing financing for investment properties can be challenging, especially for those who are self-employed or lack a traditional W-2 income. However, the MTR strategy opens up a range of creative financing options beyond conventional mortgages.

Private money and partnerships. Private money lenders, often individuals or small groups, offer flexible terms and can be a valuable source of funding for MTR investments. Partnerships, where investors pool their resources and expertise, can also provide access to capital and shared risk.

BRRRR and DSCR loans. The BRRRR (Buy, Rehab, Rent, Refinance, Repeat) strategy allows investors to recoup their initial investment by refinancing the property after renovations, while DSCR (Debt Service Coverage Ratio) loans focus on the cash flow potential of the property rather than the borrower's income history. These alternative financing options can make MTR investments accessible to a wider range of investors.

5. Market Matters: Location Criteria for MTR Success

As with any investing strategy, some markets are better than others.

Beyond vacation destinations. While STRs thrive in tourist hotspots, MTRs can succeed in a wider range of markets, including urban areas with a strong hospital presence, universities, or corporate headquarters. The key is to identify locations with a consistent demand for temporary housing from traveling professionals, students, or individuals in transition.

Key market indicators:

• Population growth
• Job growth
• Wage and income growth
• Rental rates
• Home values
• Low crime rate

Proximity to amenities. Proximity to hospitals, universities, and office parks is a crucial factor for attracting MTR tenants, as these locations generate a steady stream of individuals seeking temporary housing. However, it's also essential to consider factors such as safety, accessibility, and the overall desirability of the neighborhood.

6. Crafting Your Crystal Clear Deal Criteria

The more specific you can be, the more likely an investor-friendly agent will find the deal and send it to you.

Defining your ideal deal. Having crystal clear deal criteria is essential for identifying profitable MTR investments and avoiding analysis paralysis. This involves defining specific parameters for purchase price, renovation budget, neighborhood class, cash-on-cash return, and desired cash flow per unit.

Key elements of deal criteria:

• Purchase price
• Renovation budget
• Class of neighborhood
• Investing strategy to be used
• Cash-on-cash requirements
• Desired cash flow per unit
• Location

The education-action equation. It's important to strike a balance between education and action, avoiding the trap of over-analyzing deals without ever taking the plunge. By setting clear criteria and working with a trusted real estate agent, investors can streamline the deal-finding process and focus on making informed decisions.

7. Furnishing for Profit: Design and Durability

A lot of hard work is hidden behind nice things.

Beyond aesthetics. Furnishing an MTR unit is more than just creating a visually appealing space; it's about creating a functional and comfortable environment that meets the needs of your target tenants. This involves balancing aesthetics with durability, ease of cleaning, and cost-effectiveness.

Key furnishing considerations:

• Durability: Choose materials and fabrics that can withstand frequent use and cleaning
• Functionality: Provide essential amenities such as comfortable beds, ample storage, and a well-equipped kitchen
• Style: Create a cohesive and inviting design that appeals to your target tenant group

The MTR starter kit. Providing a starter kit of essential supplies, such as toilet paper, paper towels, and cleaning products, can enhance the tenant experience and set the stage for a positive stay. This small gesture can go a long way in building goodwill and encouraging lease renewals.

8. Listing Like a Pro: Attract the Right Tenants

It’s the little details that are vital.

Crafting a compelling listing. Creating a high-quality listing is essential for attracting potential tenants and maximizing occupancy rates. This involves writing a clear and concise description, highlighting key amenities, and showcasing professional photographs that capture the essence of the property.

Key elements of a successful listing:

• A catchy title that grabs attention
• High-quality photos that showcase the property's best features
• A detailed description that highlights amenities and target tenant groups
• Clear and concise house rules and policies

Leveraging online platforms. Airbnb, Furnished Finder, and Facebook Marketplace are all valuable platforms for advertising MTRs, each with its own strengths and weaknesses. By understanding the nuances of each platform and tailoring your listing accordingly, you can reach a wider audience and increase your chances of finding the right tenants.

9. Screening Savvy: Securing Quality Tenants

If your dream is a big dream, and if you want your life to work on the high level you say you do, there’s no way around doing the work it takes to get you there.

Beyond the basics. Screening tenants is a crucial step in protecting your investment and ensuring a positive rental experience. This involves verifying employment, checking references, and conducting background checks to identify potential red flags.

Key screening practices:

• Verify employment and income
• Check references from previous landlords
• Conduct background checks (when appropriate and legally permissible)
• Trust your gut and avoid tenants who raise red flags

Ethical landlording. It's essential to comply with fair housing laws and avoid discrimination based on race, religion, gender, or other protected characteristics. By treating all applicants fairly and respectfully, you can build a reputation as a responsible and ethical landlord.

10. Leases: Your Foundation for Responsible Landlording

Believe you can and you’re halfway there.

Formalizing the agreement. A well-written lease is essential for protecting your rights as a landlord and setting clear expectations for your tenants. This document should outline the terms of the rental agreement, including rent payment, security deposit, utilities, and house rules.

Key lease provisions:

• Rent payment terms and due dates
• Security deposit amount and return policy
• Utility responsibilities
• House rules and restrictions
• Early termination clause

Leveraging technology. Online platforms such as Apartments.com and Avail offer convenient tools for creating and managing leases, allowing for e-signatures and automated rent collection. These platforms can streamline the leasing process and save time for both landlords and tenants.

Last updated: April 11, 2025