5 Things to Look for While Investing in a Mid-Term Rental Property

Key Takeaway:

• 5 things to look for before investing in a mid-term rental property
• Take professional assistance to ensure you bypass the hassles of investing in a mid-term rental property

Are you ready to invest in a rental property in the UK?

Do you need clarification about which type of rental property will suit your investment goals?

Regardless of your planning, you must recognise the growing demand for mid-term rental property among investors.

A mid-term lease is typically one that lasts between 3 and 9 months.

These properties stand out from other rentals because they focus on tenants who require accommodations for a few months. 

But to ensure investment success, you must choose the right property.

Here are the things to consider when investing in mid-term rental.

5 Factors You Should Consider Before Investing in a Mid-Term Rental Property

We have shortlisted the top five factors you can consider before investing in a mid-term rental property and multiple others.

1. Check the location of the property

Location is one of the critical factors you must consider while investing in a mid-term rental property. Consider areas near universities, large corporate offices, and hospitals, which can help you attract the right tenant who requires temporary housing.

Also, ensure your property is closer to amenities such as public transportation, shopping centres, and restaurants, which can improve the chances of desirability.

A property close to these amenities is more attractive because it makes life easier and more enjoyable for the people who might want to rent your place for a few months.

2. Analyse the overall demand

Before investing in your next mid-term rental property, you must conduct thorough market research to understand the demand for such properties in the area.

Mid-term rental properties are usually preferred for work-related purposes, such as travelling nurses, corporate employees, or visiting professors, so ensure that your property is near key work locations.

Also, focus on factors such as:

• Rental vacancy rates
• Average rental rates 
• Occupancy rates

It can help you gauge the potential profitability of your mid-term rental property. You can seek the assistance of professionals or use different databases to analyse the overall scenario of your property.

3. Confirm your property features

Your property will stand and can experience a better occupancy rate in the long run if it offers excellent features to the tenants.

So once you complete the above steps and filter out a mid-term rental property in a prime location, look at the home’s current or potential features. Your target audience might want fully furnished, comfortable accommodations with proper amenities that address their unique needs. Ensure you invest in a property with well-equipped kitchens, spacious living areas, and comfortable bedrooms.

Don’t overlook amenities such as laundry, parking spots, Wi-Fi, a security system, and private outdoor space. If your space requires an investment in these basic amenities, don’t hesitate to invest while getting in touch with the professionals.

4. Add a differentiating factor

The mid-term rental market is becoming competitive, with more investors in the UK entering the space. You can stand out if you choose properties with unique and distinguishing features. 

Properties with historical significance, architectural charm, or a distinctive design can attract potential tenants and ensure you have a steady occupancy flow.

Many investors are adding themes to their rental properties, increasing their visual appeal. You can add a specific design style or creative wallpaper, among other creative ideas, ensuring you transform your rental space.

5. Maintain, manage, and keep it running

Understand your property’s maintenance requirements. If your property requires extensive renovations or repairs, it may result in additional costs and downtime that you can’t afford.

So focus on properties that can help you save time and money, are already well-maintained, or have the potential for cosmetic improvements.

You can hire a professional home inspector to identify hidden issues that can help you avoid being caught off-guard after investing.

But if you avoid all the hassles of investing in mid-term rental properties, you can associate with professionals like Pluxa Property.

How Can Pluxa Property Help You with Mid-Term Rental Property Investments?

Our wide range of services caters to various investment needs, whether short-term rentals, mid-term rentals, buy-to-let, or overseas investments. Based on your investment goals, we can provide you with a tailored plan to help you achieve better results.

We can become your valuable partner, providing expertise and different services to streamline your business goals and minimise investment risk.

Based in Birmingham, we are strategically positioned to serve a wide range of locations across the UK. Investing in mid-term rental properties comes with unique challenges and opportunities. 

Our team works tirelessly to minimise risks and maximise returns, ensuring that your investment meets and exceeds your expectations.

So, what’s making you wait?

Contact our experts and make your next successful mid-term rental investment.

FAQs

1. What is the 2% rule for rental investments?

Some investors use the 2% rule when looking for rental properties. In the 2% rule, the monthly rent should be at least 2% of the property’s purchase price. For example, if you buy a property for £100,000, you should be able to rent it out for at least £2,000 per month to follow this rule. Using it, you can assess if a property could be a good investment with a high rental yield.

2. How do you make money on mid-term rentals?

Making money on mid-term rentals involves renting out your property for periods longer than a typical vacation stay. You can charge rent, which is often higher than long-term rentals due to the flexibility and convenience you offer. Your property might appeal to people like business professionals, students, or medical staff who need a place for a few months.