How to Price Mid-Term Rentals for Maximum Profit

Mark Palmiere
May 28
18 min read

Updated: Jun 12

Want to maximize profit from mid-term rentals? Start by pricing smartly. Mid-term rentals, designed for stays of 1–6 months, offer higher monthly rates than long-term leases while avoiding the frequent turnover of short-term rentals. Here's how to price effectively:

Base Pricing: Set rates between long-term leases and short-term stays. Add a 25–75% premium for furnishings and flexibility.
Seasonal Adjustments: Raise prices during high-demand seasons (e.g., summer) and lower them in slower months.
Competitive Analysis: Research local mid-term rental platforms like Furnished Finder and Airbnb to compare similar listings.
Dynamic Pricing Tools: Use software like PriceLabs or Wheelhouse to automate rate changes based on demand.
Track Costs: Include operating expenses (utilities, maintenance, furnishings) and turnover costs in your pricing.

Quick comparison of rental types:

Rental Type	Duration	Cost Level	Typical Guests	Flexibility
Short-Term	Less than 1 month	High	Tourists, travelers	Very flexible
Mid-Term	1–6 months	Moderate	Digital nomads, workers	Flexible
Long-Term	6+ months	Low	Long-term residents	Rigid

Bottom line: A well-researched pricing strategy ensures steady income, reduced vacancies, and higher profits. Ready to dive into the details? Keep reading!

Mid Term Rental Pricing Strategy: Revealed

Setting Your Base Rental Price

Determining the right starting price for your mid-term rental involves analyzing two crucial data points: long-term rental rates and short-term rental pricing. Mid-term rentals occupy a niche that balances flexibility and stability, so your base price should land somewhere between what long-term renters pay and what short-term guests are charged. These benchmarks provide a foundation for setting competitive, market-aligned rates.

Finding Long-Term Rental Rates

Long-term rental rates serve as the backbone of your pricing strategy. Start by researching annual lease rates for similar unfurnished properties in your area. Tools like Rentometer.com can provide median 12-month rent data, giving you a reliable starting point to build from.

Once you've established this baseline, add a premium for the furnishings and shorter lease terms. On average, mid-term rental rates can be 25–35% higher than long-term rents. Some experts suggest going even higher, recommending a premium of 50–75%:

"Have a few midterm rentals and this is difficult when not a lot of comps but I think it needs to be closer to 50-75% more." - Jared Hottle, Real Estate Agent

The ideal premium depends on local market conditions and the type of property. Rentals near universities, hospitals, or corporate hubs often justify higher rates due to strong demand. Don’t forget to account for additional costs like furnishing, higher utility bills, frequent maintenance, and yard care, which further support charging above standard long-term rental prices. To ensure your rates are competitive, research similar mid-term rentals on platforms like Furnished Finder and Airbnb.

Using Short-Term Rental Data

Short-term rental data can provide insights into seasonal demand and help you gauge the upper limit of your pricing strategy. While mid-term rentals won’t match the nightly rates of short-term listings, analyzing this data can reveal patterns - like peak pricing during university enrollment, corporate conferences, or local events. Platforms like Airbnb are great for spotting these trends.

For example, an Austin host using 10XBNB's calculator targeted travel nurses with competitive rates, achieving 90% occupancy and generating 25% more monthly revenue than traditional long-term rentals.

Seasonal trends can also guide your strategy. During slower periods, like fall and spring, consider adjusting your rates to attract 30- to 90-day tenants. By aligning your prices with market trends - such as higher summer rates compared to winter - you can maintain steady occupancy and maximize revenue throughout the year. While your seasonal adjustments may not be as drastic as those for short-term rentals, they can still play a vital role in optimizing your income.

Analyzing Your Competition

Once you've established your base price strategy, the next step is to sharpen your approach by analyzing the local competition. Understanding what others offer is key to setting profitable rates for mid-term rentals. This means taking a close look at comparable properties and evaluating factors like location, size, amenities, and pricing. By doing so, you can position your rental to stand out in the market.

Comparing Similar Rentals

A solid competitive pricing strategy starts with accurate market data. Platforms like Furnished Finder can provide a clear snapshot of your local rental market. From there, dive deeper into individual properties. Instead of focusing solely on advertised prices, compare features like location, layout, decor, and amenities. On platforms like Airbnb, use filters for 30+ day stays to identify extended-stay rentals that align with your target market.

Pay attention to the number of listings versus actual availability during your search timeframe. If there are plenty of listings but only a handful of available properties, that suggests demand is high, which could support higher pricing. On the other hand, widespread availability may indicate the need for more competitive rates.

To make this process easier, consider using revenue management tools. These tools often include competitor comparison features, allowing you to create "Comp Sets" that benchmark your property against similar rentals nearby. Market dashboards can also provide valuable insights into trends like lead time, average length of stay, pricing patterns, and seasonal demand.

One host, Justin Brickman, shares an insightful perspective:

"I try not to pay too much attention to other listings because I've noticed many hosts are more concerned with having a higher occupancy rate than a high price." - Justin Brickman, Realtor

This highlights the importance of staying aware of market rates without feeling pressured to compete solely on price. Striking the right balance between occupancy and pricing is essential.

Once you've analyzed the competition, the next step is to assess how your property's unique features can influence your pricing strategy.

Pricing Your Amenities

Your property's amenities can play a big role in justifying premium rates. Beyond simply matching market prices, consider what makes your rental stand out. Features like updated finishes, high-quality furnishings, or specialized amenities can all add value.

Start by cataloging your property's amenities and comparing them to similar rentals. For example, if your property includes dedicated parking, in-unit laundry, or a well-equipped workspace, these features can set you apart from competitors who offer shared or limited options. These differences can justify charging higher rates.

Location is another critical factor. A rental near a major hospital may attract travel nurses willing to pay a premium, while proximity to corporate centers might appeal to business professionals. Even within the same neighborhood, being closer to key services or attractions can make a big difference in pricing.

A common starting point for mid-term rental pricing is to set rates at 1.3 to 1.6 times the cost of long-term rentals. However, this multiplier can vary depending on location, amenities, and the demographics of your target renters. Use this as a baseline, then adjust based on the unique advantages your property offers.

When crafting your listing, highlight these standout features. Whether it's a superior location, specific amenities, or thoughtful touches, make sure prospective tenants understand the value your property provides. If your competitors lack certain features that you offer, emphasize those differences - they can be a strong justification for higher pricing.

Pricing mid-term rentals can be tricky since most properties are traditionally geared toward either short-term or long-term markets. This creates an opportunity for informed hosts who understand their competitive edge and can price accordingly.

Finally, make it a habit to regularly research local mid-term rental prices. Markets shift throughout the year, and staying on top of trends will help you find the right balance between profitability and appeal for your target renters. These insights will feed into the broader pricing strategy covered in later sections.

Changing Prices Based on Demand

Setting the right price for mid-term rentals involves more than just sticking to a fixed rate. Unlike long-term leases, mid-term rentals thrive on dynamic pricing strategies that adjust to real-world conditions like seasonal demand, local events, and occupancy trends. By embracing this approach, you could see a revenue boost of 20–30%.

Demand naturally ebbs and flows throughout the year. Warmer months, for instance, often bring higher demand, allowing you to raise prices. In contrast, offering discounts during slower periods can help attract renters and maintain steady occupancy. These adjustments build on your base pricing strategy, blending fixed rates with a more flexible, market-responsive approach.

Pay close attention to local demand patterns and your property's booking trends. If you're seeing strong demand and consistent bookings, gradually increasing rates may make sense. On the other hand, if your property sits vacant for too long, lowering the price strategically could help draw in tenants.

Using Pricing Software

Manually adjusting rates can quickly become overwhelming, especially when the market shifts rapidly. This is where pricing software comes into play. Tools like PriceLabs, Beyond Pricing, and Wheelhouse use real-time data to automate rate adjustments, considering factors like seasonality and local trends.

Among these, PriceLabs stands out for mid-term rental hosts. With over 500,000 units relying on its services daily, the platform fine-tunes pricing based on market data, seasonal fluctuations, and local demand. Its quick adaptability to market changes can make a noticeable difference in your revenue.

"PriceLabs adjusted rates across the board for a new festival within a day of the announcement, securing higher dollar amount mid-term reservations for 2024." – Shannon Metcalf, Hostess in Chief at Host with the Most, USA

The results speak volumes. For example, in March 2023, Mile High FIRE’s short-term rental averaged $527 per night with 28 nights booked. After adopting PriceLabs, their first March 2023 booking jumped to $1,146 per night. While this example focuses on short-term rentals, the same principles can be applied to mid-term properties.

Wheelhouse is another strong contender, especially for hosts managing a variety of properties. Users report an average revenue increase of 20.6%, with the platform offering both rule-based and data-driven pricing strategies.

Many of these tools offer free trials, making it easy to test them out. Start with a 30-day trial to compare automated pricing with your manual approach. Track metrics like occupancy rates, average daily rates, and total revenue to evaluate the impact.

Pricing for Local Events

Local events can significantly influence rental demand, creating opportunities to adjust rates. Whether it’s conventions, medical rotations, or seasonal tourism, these spikes in demand often justify higher prices.

For example, hospital rotations are a lucrative niche for mid-term rentals. Travel nurses and medical professionals on 13-week assignments are often willing to pay premium rates for comfortable, well-located housing. If your property is near a hospital, keep an eye on rotation schedules and adjust your rates accordingly.

Corporate events and conventions can also drive demand. Check your city’s convention calendar and major corporate activity schedules. Large events can fill up hotels, pushing travelers to seek alternative accommodations like mid-term rentals.

Seasonal pricing requires a more tailored approach. Take Cape Cod as an example: peak rental season runs from May through September, with discounted rates kicking in during April and October. During the peak months, some hosts charge the equivalent of a month’s mortgage for just one week’s rental. This strategy works because demand far exceeds supply during this time.

To maximize revenue during peak periods, consider setting minimum stay requirements. This not only reduces turnover costs but also aligns with the longer stays typical of mid-term rentals. Early bird pricing can also be an effective strategy - offering discounts for bookings made well in advance helps secure revenue while still leaving room for premium pricing on last-minute bookings during high-demand periods.

It’s essential to communicate rate changes and the reasons behind them clearly. Sudden or unexplained price hikes can erode tenant trust and hurt your reputation.

To refine your event-based pricing, track booking patterns, guest feedback, and revenue per available night. These insights will help you fine-tune your strategies for future events, ensuring you stay competitive without overpricing your property.

West Coast Homestays has successfully applied these strategies to keep their mid-term rentals in San Diego both competitive and profitable.

Calculating Costs for Profit

Getting your costs right is crucial when setting rates for mid-term rentals. These types of rentals come with their own unique cost structures, differing from both short- and long-term rental models. Accurate calculations form the backbone of pricing strategies, ensuring profitability while staying competitive.

To start, calculate your net operating income (NOI) by subtracting operating expenses from total revenue. A common guideline, the 50% rule, suggests that operating expenses typically amount to about half of a property's gross annual rental income. Ideally, your operating expense ratio (OER) should fall between 60% and 80%.

"An increase in repairs or a decrease in rents will both lower net operating income." - Cristy Andrews, CPA, Warren Averett

For example, if your rental generates $3,000 in monthly income, you can expect operating expenses to range between $1,800 and $2,400. Knowing this ratio helps you anticipate costs and recognize when they’re spiraling out of control. From there, break down these expenses into regular operating costs and turnover costs to determine a minimum rental price that ensures profitability.

Adding Up Operating Costs

Mid-term rentals typically include a range of expenses such as utilities, insurance, property management fees, maintenance, and furnishings. Unlike long-term rentals, where tenants often cover utilities, mid-term rentals usually bundle these costs into the monthly rate.

When calculating your monthly operating expenses, include:

Property taxes and insurance (often part of your mortgage payment)
Marketing and advertising
Maintenance and repairs
Utilities and trash collection
Landscaping and snow removal
HOA fees (if applicable)

For furnished rentals, you’ll also need to budget for appliances and household items that require regular upkeep or replacement. If legal help is required to draft lease agreements, plan to spend at least $200 for professional assistance.

Vacancy periods are another key factor to consider. Mid-term rentals generally see higher turnover compared to long-term leases, meaning there will be times when your property isn’t generating income but still incurs expenses. To account for this, include vacancy periods in your annual cost projections using realistic local occupancy rates.

To set your minimum rental price, add up all monthly expenses, include your desired profit margin, and divide by the expected occupancy rate. For instance, if your total costs are $2,000 per month and you aim for a 20% profit margin (bringing your target revenue to $2,400), an 85% occupancy rate would require a monthly rental rate of approximately $2,824.

Reducing Turnover Costs

Once you’ve tallied your operating expenses, it’s time to focus on cutting turnover costs to maximize profitability. Turnover is often one of the largest expenses for mid-term rentals. The average apartment turnover rate is estimated to be around 40–50%, with costs averaging about $4,000 per unit. According to a survey by the National Apartment Association, 53.8% of property management firms reported turnover costs ranging from $1,500 to $3,500 per unit.

Reducing these expenses starts with proactive maintenance and building strong relationships with vendors. Regular maintenance schedules can catch small issues before they become costly repairs. Partnering with reliable cleaning crews, maintenance teams, and repair specialists ensures quick turnarounds and consistent pricing.

Another way to cut costs is through automation. Tools for automated tenant messaging, rent reminders, and maintenance requests streamline operations and reduce human error. These systems also improve communication with tenants, which can lead to longer stays and fewer turnovers. This aligns well with the dynamic pricing strategies discussed earlier.

Companies like West Coast Homestays have seen success by prioritizing vendor management and keeping properties in excellent condition. This not only reduces long-term operational costs but also boosts tenant satisfaction and retention.

Using a Mixed Rental Approach

Combining short-term and mid-term rental strategies can elevate your overall pricing approach. By blending these two models, you can take advantage of peak-season rates while maintaining steady income during slower times. The data is compelling: mid-term rentals have surged by 94% year-over-year, with stays of 28+ days now making up over 20% of Airbnb's total bookings - a 71% jump compared to pre-2020 levels. Additionally, stays lasting 30+ days contribute 17% of Airbnb's revenue and show no signs of slowing down.

The key to success lies in understanding when each rental type performs best. Short-term rentals shine during peak tourist seasons, commanding higher nightly rates. On the other hand, mid-term rentals help ensure consistent occupancy when demand dips. This dual approach aligns perfectly with the dynamic pricing strategies outlined earlier.

Switching Between Rental Types

To make the most of this strategy, timing is everything. Transitioning between short-term and mid-term rentals requires careful analysis of local demand and seasonal patterns. During high-demand periods, focus on short-term bookings to capitalize on premium rates. When tourist activity slows, pivot to mid-term rentals to maintain a steady income stream.

Property management systems (PMS) can simplify this process by syncing calendars across platforms, avoiding double bookings, and streamlining operations for both rental types. Tailoring your listing descriptions to the season can also help attract the right audience - highlight vacation-friendly features in the summer and emphasize work-friendly amenities, like dedicated office spaces, during quieter months. Adjusting your property setup for mid-term renters - think fully equipped kitchens, laundry facilities, and fast, reliable internet - can make a big difference in guest satisfaction.

A great example of this strategy in action is West Coast Homestays. They’ve helped property owners in San Diego maximize both occupancy and revenue by switching between rental types based on market conditions.

Different Rates for Different Stay Lengths

Offering tiered pricing with discounts for stays over 30 days can boost occupancy while cutting down on turnover costs. Short-term rentals often come with higher turnover expenses, whereas mid-term stays reduce these overheads.

This hybrid approach is particularly effective in areas with strong seasonal fluctuations. For instance, beach destinations might focus on short-term rentals during the summer and shift to mid-term options in the winter. Conversely, urban properties near business hubs may see the opposite pattern, adjusting to local demand as needed. By tailoring your strategy to these trends, you can make the most of both rental models.

Following Local Rules and Regulations

Understanding and adhering to local regulations is a critical step for anyone looking to profit from mid-term rentals. These rules vary significantly by location, and failing to comply could lead to fines that eat into your earnings. Just like operating costs and turnover expenses, regulatory fees must be factored into your pricing to protect your profit margins.

Many cities have introduced regulations aimed at controlling short-term rentals. These often include restrictions on stay lengths, property types, licensing, insurance, and permits. While mid-term rentals may not always fall under these rules, it's essential to know where the boundaries lie. For instance, in California, local ordinances for mid-term rentals can differ from city to city and even between counties. Reviewing these rules thoroughly and securing the necessary permits ensures your operations remain legal and penalty-free. By understanding how regulations affect your costs, you can accurately incorporate these fees into your pricing strategy.

Including Licensing Fees

Licensing fees are another expense that can impact your bottom line, especially in cities with strict regulations like San Diego. For example, San Diego requires a Short-Term Residential Occupancy (STRO) license for rentals under one month. The STRO licensing system includes four tiers, each with different fees that need to be considered when setting your rental rates:

License Tier	Application Fee	License Fee
Tier 1	$33	$193
Tier 2	$33	$284
Tier 3	$41	$1,129
Tier 4	$41	$1,129

These fees, which take effect on March 1, 2025, can add up quickly. For higher-tier licenses, you might be looking at over $1,100 in annual fees before you even host your first guest.

Beyond licensing, you’ll also want to budget for inspection fees, property upgrades, or any state registration costs. Regulations can change frequently, so it’s wise to check your local government’s website or contact their office to ensure you’re up to date on requirements. Once you’ve accounted for these regulatory expenses, you can integrate them into your broader tax strategy to safeguard your profitability.

Improving Tax Efficiency

Thoughtful tax planning is another way to enhance the profitability of your mid-term rental. Property taxes, for instance, are fully deductible as a rental expense, which can help lower your taxable income. You can also deduct other rental-related expenses, but meticulous record-keeping is essential to maximize these benefits and stay compliant.

One effective strategy is separating utility costs from your base rent. When utilities are bundled into the rent, the entire amount is considered taxable income. By billing utilities separately, you may be able to deduct the actual utility expenses as operating costs instead.

Tax planning works hand-in-hand with regulatory compliance to help offset operational expenses. Consulting a tax advisor can ensure you’re taking advantage of all eligible deductions while staying within the law. For additional guidance, the IRS Publication 527 provides detailed information about rental income and expenses, but professional advice tailored to your situation can be invaluable.

In San Diego, for example, you’re required to collect a 10.5% Transient Occupancy Tax (TOT) from guests and obtain a Rental Unit Business Tax Account Number. These additional administrative tasks should be factored into your pricing from the start. Whether it’s licensing fees, inspection costs, or tax obligations, incorporating all regulatory expenses into your pricing ensures you maintain healthy profit margins while staying compliant with local laws.

Tracking Results and Improving Pricing

Setting the right price for mid-term rentals isn’t a one-and-done task - it’s an ongoing process. To stay ahead, you need to regularly monitor your property’s performance and adjust based on real-world data. This kind of consistent tracking helps pinpoint what’s working, what’s not, and where you can make changes to boost profits.

Measuring Key Performance Numbers

Focusing only on occupancy rates won’t give you the full picture. To truly understand your rental’s financial health, you need to track multiple metrics. Key ones include:

Occupancy Rate: How much of the time your property is booked.
Average Daily Rate (ADR): The average income earned per booked day.
Revenue Per Available Rental (RevPAR): This combines occupancy and pricing data, offering a more complete view of performance.

For context, a solid return on investment (ROI) for rental properties typically ranges between 8–12%. Additionally, keeping your operating expense ratio (OER) between 60–80% can help ensure your strategy is on track.

Here’s a practical example: A lakefront property in Michigan noticed that 70% of bookings occurred 30–45 days in advance, with another surge less than a week before the stay. By sending promotional emails six weeks ahead and using dynamic pricing for last-minute reservations, the owner increased revenue by 15% while maintaining an 85% occupancy rate during peak season.

Operational costs also deserve attention. For instance, a downtown apartment rental faced delays in guest check-ins due to tight cleaning schedules. By adopting standardized cleaning checklists and hiring extra help during busy periods, the owner reduced turnover times by 30 minutes and cut emergency repair costs by 20%, saving $1,000 annually while boosting guest satisfaction.

Tracking utility and other operating expenses is equally critical. Consider an Austin vacation rental generating $120,000 annually, where cleaning fees accounted for $15,000. By renegotiating contracts and offering mid-stay cleaning as an optional add-on, the owner reduced cleaning costs by 10%, saving $1,500 and increasing net income from $80,000 to $81,500.

Tools like AirDNA and property management systems make it easier to monitor these metrics. The key is to set benchmarks for each number and review them consistently to identify trends and opportunities.

Using Current Market Data

While internal metrics reveal how your property is performing, staying competitive requires keeping an eye on the broader market. Rental prices and demand don’t stay static, so your strategy needs to evolve with them.

Start by monitoring platforms like Zillow, Rent.com, and Craigslist to track rental prices in your area. Keeping tabs on comparable listings over time will help you understand market trends and adjust your pricing accordingly.

Here’s a quick breakdown of tools that can help:

Tool Name	What It Offers
Rentastic	Quick market insights and customizable reports
Rentometer	Fast price checks with nationwide comparisons
RentRange	Historical data and in-depth market analysis
Zillow Rent Zestimate	User-friendly interface with automatic valuations

Local economic factors, like employment rates and new developments, also play a role in shaping demand. For instance, new commercial projects or infrastructure upgrades in your area can shift rental dynamics.

The most effective pricing strategies rely on real-time data rather than occasional manual reviews. While it’s good practice to conduct a comprehensive review of your pricing strategy every quarter, dynamic pricing adjustments - made daily - can help you stay competitive and maximize profits.

To stay on top of market changes, keep your rental calculator updated with fresh inputs like current occupancy rates and rent. Comparing different pricing scenarios and using historical data to forecast trends will help you refine your approach and drive consistent profits.

Conclusion: Setting Profitable Mid-Term Rental Rates

Pricing mid-term rentals is all about finding the right balance. These rentals provide more stability than nightly stays while often offering better returns than traditional long-term leases.

To succeed, your pricing strategy needs to lean on current market data. Start with solid market research and keep an eye on trends. Regularly reviewing comparable properties and understanding local demand factors - like nearby universities, hospitals, or corporate hubs - can help you figure out if your rates are competitive.

Be ready to adjust your rates based on factors like the length of stay, seasonal trends, and local events. Offering discounts for extended stays can reduce turnover and improve your overall profitability.

Don’t overlook your expenses. From cleaning fees to licensing costs, every dollar spent impacts your bottom line. A clear understanding of these costs lets you set prices that maintain healthy profit margins while still appealing to potential renters.

Staying compliant with local regulations is just as important. Knowing the zoning laws, rental duration limits, and licensing requirements in your area can save you from legal troubles and ensure smooth operations.

Tyler Coon, founder and CEO of Savvy STR Agents, sums it up well:

"Active participation is required to cash flow the property the best way possible".

At West Coast Homestays, we take this approach to heart. Our team in San Diego works tirelessly to help property owners maximize both occupancy and revenue by staying on top of market trends and making smart, strategic adjustments.

FAQs

How do I set the right price for a mid-term rental based on its location and features?

To set the right price for your mid-term rental, start by checking out similar properties in your area. Pay attention to their rates, features, and how often they’re booked. This gives you a solid starting point. If your property offers perks like high-speed Wi-Fi, in-unit laundry, or is located near public transit or key attractions, you might be able to charge a bit more.

A handy starting point is to price your rental at about 1.15 times the average rent for similar long-term rentals nearby. From there, tweak your pricing based on demand, guest reviews, and seasonal factors. For instance, summer months or big local events could justify a rate increase. Keeping an eye on these factors and adjusting as needed will help you stay competitive while boosting your earnings.

What are the advantages of using dynamic pricing tools for mid-term rentals, and how can they boost your profits?

Dynamic pricing tools have transformed the way mid-term rentals maximize profits. These tools work by automatically adjusting your rental rates in real-time, taking into account factors like market demand, local events, and competitor pricing. The result? Your rates remain competitive, helping you secure higher earnings during busy periods while also attracting bookings during slower times.

Using historical data and predictive analytics, dynamic pricing tools enable you to anticipate demand and craft more effective pricing strategies. Plus, they take the hassle out of manual rate adjustments, minimizing errors and saving you valuable time. With these tools in your corner, you can boost occupancy, simplify operations, and elevate your overall revenue with ease.

How do local laws and fees affect mid-term rental pricing?

Local Regulations and Licensing Fees

Local rules and licensing fees can play a big role in shaping how you price your mid-term rental. Many areas require property owners to pay for permits or licenses, which adds to your overall operating costs. To keep your rental profitable, it's important to include these expenses in your pricing calculations.

On top of that, some regulations might limit how long you’re allowed to rent out your property or cap the number of rentals in your area. These restrictions can shrink the pool of available rentals, which often boosts demand - giving you the opportunity to charge higher rates. Staying up to date with local laws not only keeps you compliant but also helps you make smarter pricing decisions to maximize your rental's performance.