Should you enter the mid-term rental market?

Current world events have made renting a far more dangerous and uncertain occupation than ever before. Countries have taken many steps towards ensuring the safety of their citizens, but many have also destabilised their rental markets in the process.

 

All of this may spell doom for many short-term rentals, and it poses some problems for long-term renting as well, but that does not mean this is the end of landlords. Have you ever heard of mid-term rentals?

 

 

The worldwide pandemic has pretty much decimated the global rental market. The number of property-renting transactions is much lower than pre-corona. This is primarily due to the diminished demand for new living. Many tenants found themselves in financial hardships and are either struggling to make the rent they already have or do not have any extra income to move to a better place.

 

Hence, many people who are already tenants are unlikely to move to a new location. Typically, this would be outweighed by tourism, ex-pats, and young people looking for new homes. However, each of these sectors was also impacted by COVID-19.

 

Tourism was effectively banned across the world through a series of nationwide lockdowns and border closures. Many ex-pats have left the countries of their choice to move back home to be closer to their relatives. And many young people are struggling to enter the job market, which experiences similar hardships as the property market. Overall, there are fewer rent-seekers than ever before.

 

 

 

 

Short-term rentals, such as Airbnb, have been affected more than others. Due to the closed borders and restricted travel, many short-term landlords struggle to fill their rentals. Because of the lessened tourism, movement of international students, and business travel, many landlords were forced to begin renting their properties below the market value.

 

Short-term rentals are not the only ones affected in this way. A sudden lack of customers has decimated hotels, tourism-related services, and many others. Some have been able to shift to a better business model, but many have been forced to close their businesses entirely. COVID-19 and mid-term rentals Landlords the world over are trying to find new ways to secure their businesses.

 

Many have turned away from recently devastated short-term rentals of Airbnb and the like to long-term ones, but this might not always satisfy the landlord’s needs. Much flexibility and convenience are lost when going long-term, so many landlords have chosen mid-term rentals instead with companies such as Flatio.

 

Mid-term rentals offer the best of both worlds. Landlords have some security since their rentals are being occupied for longer, and they still don’t have to rent out their apartments for years on end. The mid-term market also targets a slightly different group of tenants than the short-term or the long-term market.

 

Most people cannot travel, but some, such as academics, business people, and even remote workers and digital nomads, have moved about as before. But these tenants need to stay for a couple of months, not days or years. So the mid-term rentals are ideal for them. If you want to try a new kind of renting, why not try mid-term rentals with Flatio? 

 

Please find out more about how Flatio works and why it pays off by clicking here.