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Earning higher returns with mid-term rentals

Property owners familiar with the higher earning potential of Airbnb and short-term rental bookings should also be aware of the associated benefits of being exposed to the mid-term rental market for extended length stays.

Of all booked nights by MadeComfy guests in 2019, over one-third of booked nights were for stays over 21 nights, as these guests are searching for well appointed, fully furnished properties with utilities already set up and are 'move in ready'

In this article we explore typical target audiences for mid-term bookings and how owners can market their property to better attract stays three weeks and longer.

 

Ask an Airbnb expert: want more information about short-term rental in Australia? Submit your question to the MadeComfy team below.

What are mid-term bookings?

In general, mid-term bookings are stays that are longer than three weeks. These bookings can extend to similar time periods as normal long-term rental leases (6-12 months) however are distinguished by the absence of a formal lease agreement.

Similar to short-term rentals, mid-term stays are generally booked through accommodation platforms such as Airbnb. Depending on the length of stay, a lower nightly rate may be negotiated with the guest as a special offer.

mid term booking corporate rentals

Photo: Designer Apartment with Balcony in Quiet Suburb

This one-bedroom apartment located in Macquarie Park, Sydney and managed by MadeComfy is an example of a property popular for longer mid-term bookings from corporate and work travelers, due to its modern amenities, furnishings and proximity to a major train station, business hub and university.

The mid-term rental market

There are a number of different types of guests seeking mid-term rental bookings.

An example popular segment consists of corporate and business travelers who may require flexible accommodation in a new city or country for a temporary period, but do not want to commit to a full-time lease. Airbnb and short-stay properties are an attractive choice for these travelers because they are fully furnished and ready to move in with all utilities already set up and included in the price.

Common reasons for corporate mid-term booking trips include:

  • Temporary accommodation during an office relocation

  • Fixed term project work
  • Professional freelancers requiring temporary base

These stays are often funded by a company or their employer, so guests will be less price sensitive and more concerned with the ability of the accommodation to suit their needs during their stay.

At MadeComfy, mid-term bookings over 21 nights in length made up 34% of all booked nights in 2019:

 

% of booked nights >21 days in 2019 - MadeComfy

mid term bookings data MadeComfyWhy target mid-term bookings?

Longer stay bookings increase the overall occupancy rate of your property and are more likely to earn higher income compared to multiple short-term bookings even with a discounted nightly rate.

In addition, proposed short-term rental regulations in New South Wales are seeking to limit the number of days a property can be rented on the short-term market to 180 nights per year.

However, any stays that are 21 nights or longer will not count toward this cap, and therefore allow property owners to earn higher income from the short and mid-term market over a greater number of days per year.

Tips for attracting mid-term rental bookings

  1. Offer length of stay discounts

    Your Airbnb listing will allow you the option to set a nightly discounted rate for bookings over a specified time period, such as a week or month: 

    length of stay discounts airbnb

    Consider your property's pricing strategy and testing different discount rates to find the right balance to maximise your overall short-term and mid-term booking revenue.

  2. Include amenities useful for longer stays

    Comfort is key for longer term guests, and fully equipped properties are more likely to attract guests that will be staying at a property for an extended period.

    mid term booking amenitiesPhoto: Stunning Brand New Apartment Near Airport and City

    Features such as reliable and fast wifi internet, an adequately equipped kitchen, air-conditioning and heating, washing machine and a dedicated desk space for work can make your listing much more likely to be booked by corporate and mid-term renters.

  3. Highlight location and access proximity

     

    mid term booking location

    If your property is close to hubs useful for certain groups of mid-term booking guests such as commercial and business centres, universities, transport and offices, ensure these are properly highlighted in your listing title and description.

Want to find out more about acquiring more mid-term bookings for your Airbnb or short-term rental property? Speak with a MadeComfy property consultant today using the form below.

 

Ask an Airbnb expert: want more information about short-term rental in Australia? Submit your question to the MadeComfy team below.

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