What is ‘Midterm’ Anyway?
Understanding the rental market players and where mid-term fits in
In the past, midterm has faced a bit of a “Middle Child Syndrome” — perhaps a bit overshadowed by it’s short-term and long-term counterparts — left undervalued and overlooked. However, as rental markets transform and the sharing economy navigates the “new normal”, midterms are rising to the surface and opening doors to millions of people that need flexibility during this changing dynamic of demand.
Okay, so what is mid-term? By definition, midterm rentals consists of properties leased for 1–11 months (Moblhom’s sweet spot is 2–6 months) usually furnished, an ideal fit for people who need more than a vacation but less than an annual rental. While midterm housing is leased monthly (vs. nightly or yearly), the daily rate is typically less expensive than the rate of a short-term rental. Essentially, it’s the happy medium of all the housing options out there.
Who’s it for? Below is a breakdown of personas and situations fit for the midterm:
• Individuals or Families Relocating: Get a feel for a city before committing to a particular area or neighborhood. Sounds easy, right? Not unless you can find a good midterm rental solution. Scout the scene before making any gunshot decisions.
• Meemaws and Pawpaws: We love them but they tend to stay longer than expected (especially when welcoming new grand babies).
• Renovating Home Owners: Just like Meemaw and Pawpaws extended stays, renovation projects are likely to be extended too. Then extended. And extended again. And again?! Probably. Flexible month-to-month midterm stays don’t mind if you extend your stay while you get your house juuust right.
• The Commitment-Phobic: Not sure where you want to put down roots (if ever)?
• Divorcees: Till death do you part? Not always…
• The Corporate Traveler: Want to experience something other than a stuffy hotel room that shares walls with strangers? And has more space as well as amenities? Midterm.
• Snowbirds: Need to migrate to a warmer climate to escape a winter tundra for a bit? Midterm. Note: You don’t have to be a 70 year old retiree to qualify as a Snowbird.
• Millennials + Hosts Alike: The majority of young bucks (millennials) don’t want to buy property + they don’t want to commit to one location + midterm has the potential to yield much greater profits than long-term leases = property owners have the option dedicate a portion of inventory to midterm rentals to maintain a sustainable business model and mitigate risk.
• The Accident-Prone / When Life Happens: For those who may forget to turn off the faucet or blow out a candle (also known as “Displacements” in insurance terms) and need a place while their oopsy is fixed.
In summary, midterm is a good fit for a wide variety of people facing an array of circumstances.
Similar terminology includes: month-to-month rentals, monthly rentals, medium stays, extended stays, long-term stay, flexible lease, sublets.
