Short-, Mid-, & Long-term Rentals 101

Different types of rentals cater to varying needs, from short-term accommodations for travelers to long-term leases for those seeking stability. Short-term rentals (STRs), mid-term rentals (MTRs), and long-term rentals (LTRs) each have distinct features, costs, and regulations. Understanding the characteristics and differences between these types of rentals can help both renters and landlords make informed decisions based on their specific needs. Smart Share staff find many of our clients interested in the newer category of mid-term rentals. Let’s dive into some of the key differences between these three types of rentals. 

Short-term rentals (STRs) are typically defined as properties that are rented for 30 consecutive days or less. STRs can also be referred to as vacation rentals or temporary housing. Short term rentals have been around for a long time, with hotel rooms, boarding houses, renting rooms in a primary residence, or renting an entire second home. In recent years STRs have grown in popularity in part due to platforms such as Airbnb and Vrbo, making these spaces more widely available in residential areas. Short-term rentals often cater to travelers looking for a flexible and temporary accommodation as an alternative to a hotel. 

• Reasons for choosing: minimum commitment, from 1 day to 30 days, with no tenancy 

• Costs and fees:  highest, due to high turnover costs,  peak period pricing and turn key in and out allowances; usually paid upfront, with possible extra charges being added on after the stay for things like damages or cleaning costs. 

• Regulation:  highly regulated because of potential impacts on the local housing market and neighborhood vitality. Regulations surrounding short-term rentals vary by jurisdiction, and STRs not allowed in ADUs and THOWs in CA, in general, or any type of housing in several jurisdictions, so it is important to research the rules in your area if you are considering renting or running one.

• Furnished and including utilities: Yes

• Security deposits: no

• Popular listing sites: Airbnb, VRBO

Mid-term rentals (MTRs) have lease durations that typically last one to six months. These rentals provide more flexibility than a typical 12-month lease, and are an appropriate housing choice for an extended yet predetermined stretch of time. Although they are the least common form of rental, they serve the important role of bridging the gap between short- and long-term rentals. Mid-term rentals may also be referred to as extended stays. MTRs can cater to different groups of people for a variety of reasons. Traveling professionals, such as nurses on temporary contracts, are often in one place for just a few months. Mid-term rentals offer a homey feel without needing to sign a year-long lease. MTRs may also be rented by families who are undergoing home renovations or in the process of relocation. Mid-term rentals give renters the opportunity to get a feel for a neighborhood before fully committing to it. The cost for a MTR is usually paid month-by-month, but there may be the option to pay the full price upfront. The monthly cost for this type of rental is typically less than a short-term rental, yet more expensive than a long-term one. MTRs usually require the space to be furnished, which may be more expensive for the landlord upfront, but saves the renter costs and creates a turn key move in and move out. These rentals feature moderate turnover rate and renters are more likely to treat the space as their home, leading to less wear and tear than a short-term rental. These types of rentals are generally subject to the same landlord-tenant laws as long-term rentals, so it is important to research what the rules apply in your jurisdiction.

• Reasons for choosing: modest commitment, from 30 days to 6 or 9 months 

• Costs and fees: middle range due to convenience and bundled amenities, with rents usually paid monthly, with possible extra charges being added on after the stay for things like damages or cleaning costs. 

• Regulation: moderate regulation & tenancy rules apply, so it is important to research the rules in your area if you are considering

• Furnished and including utilities: Yes

• Security deposits: Maybe

• Popular listing sites: Furnished Finders, Airbnb, VRBO, Craigslist, Facebook Marketplace

Long-term rentals (LTRs) usually feature 12-month lease agreements that are renegotiated each year. This is the most common type of rental, and the average American spends $330,000 on rent before buying their own home. These rentals are also referred to as fixed-term leases or residential leases or rental agreements. Long-term rentals provide stable housing for individuals or groups of people who will be staying in the same place for an extended period of time, often multiple years. The cost of a long-term rental is typically less than shorter options. These spaces do not usually come furnished, so moving in and buying furniture do typically add an extra cost. Long-term rentals are almost always paid for monthly, and require security deposits and first month’s rent upfront. These types of rentals feature the least turnover rate and usually require the least amount of property management from the landlord. Replacing a tenant may be difficult, but when there is someone renting the space it provides a stable income stream for the landlord and much needed long term housing for community members. 

• Reasons for choosing: longest commitment, one year or more.

• Costs and fees: lowest cost of rent due to long commitment, with rents usually paid monthly. 

• Regulation: moderate regulation and tenancy rules apply, so it is important to research the rules in your area if you are considering; These rentals are subject to the fair housing act as well as federal, state, and local housing regulations. States may have certain regulations on how security deposits and eviction processes are handled. 

• Furnished and including utilities: Maybe

• Security deposits: Yes

• Popular listing sites: Platforms such as Zillow or Apartments.com can be good places to search for or list a long-term rental.

The rental market offers a variety of options to suit different lifestyles and circumstances, from the short-term flexibility of STRs to the stability of long-term leases. Each rental type comes with its own set of benefits, costs, and challenges, making it essential for both renters and landlords to consider their needs and preferences. As the rental landscape continues to evolve, staying informed about the regulations and trends that shape these markets will remain crucial for making the best housing decisions.

Works Cited

Airdna. (n.d.). What is considered a short-term rental? Airdna. Retrieved March 28, 2025, from https://www.airdna.co/blog/what-is-considered-a-short-term-rental

Fortune. (2024, August 26). Rent vs. lifetime costs: How much does average homeownership cost? Fortune. https://fortune.com/2024/08/26/rent-lifetime-costs-average-homeownership/

Hemlane. (n.d.). Mid-term rentals: A guide for landlords. Hemlane. https://www.hemlane.com/resources/mid-term-rentals/

PropStream. (n.d.). Mid-term, short-term, and long-term rentals: What's the difference? PropStream Real Estate Investor Blog. https://www.propstream.com/real-estate-investor-blog/long-term-short-term-and-mid-term-rentals#:~:text=Mid%2Dterm%20rentals%20bridge%20the,workers%20who%20travel%20while%20working

The Zebra. (2024, November 18). Renting statistics in 2025. The Zebra. https://www.thezebra.com/resources/research/renting-statistics/