Medium-Term Rental – how to earn and build a stable real estate business?

Medium-term rental is gaining popularity among real estate investors. It is a golden mean between short-term and long-term rental, combining flexibility with regular income. In this article, you will learn what medium-term rental is, why it is worth considering, and how to build a profitable and stable business with it.

1. What is medium-term rental?

Medium-term rental is a form of property rental for a period of 1 to 12 months. It is particularly popular among:

• people relocating
• contract workers
• international students
• digital nomads
• people renovating their own apartments

Unlike short-term rental, it does not require frequent guest service while still generating higher income than classic long-term rental.

How does medium-term rental differ from other forms of rental?

2. Why invest in medium-term rental?

Higher income than long-term rental

• rents in medium-term rental are usually higher than in long-term rental (even by 20-50%), though lower than in short-term rental
• with a good location and apartment standard, this can mean a better return on investment (ROI)

Lower turnover and costs than in short-term rental

• fewer tenant changes than in daily rental, which reduces cleaning frequency, key handovers, and reservation management
• lower operating costs while maintaining attractive rental rates

Lower risk of arrears and problematic tenants

• medium-term tenants are often professionals, remote workers, relocated employees, international students, contract doctors, etc.
• these are people who have no interest in getting into debt or damaging the property, as they plan to stay briefly but in good conditions

Flexibility for the owner

• you can adjust your rental strategy to the season (e.g., medium-term in autumn-spring and short-term in summer)
• if needed, you can more easily reclaim the property, e.g., when you want to sell it or use it yourself

Favorable tax and legal regulations

• in many countries, including Poland, medium-term rental does not require additional permits or business registration, unlike short-term rental
• possibility to settle taxes with an 8.5% flat rate (up to a certain limit)

Growing demand

• more people travel for work, work remotely, or temporarily relocate – this creates real demand for comfortable apartments for several weeks or months
• after the pandemic, work and mobility patterns have changed – medium-term rental gained importance

Possibility of professionalization and automation

platforms such as Flatio, Spotahome, HousingAnywhere, Airbnb (with the “monthly stays” option) or specialized PMS systems like BedBooking allow automation of rental management

3. What properties are best suited for medium-term rental?

Types of ideal properties

Studios and 1-bedroom apartments

• highest demand among singles, relocated workers, international students, childless couples
• easy to furnish, clean, and maintain
• affordable for tenants and quick to rent

Apartments with separate rooms (for flatmates)

• popular for renting rooms for several months – e.g., Erasmus students, young employees, foreigners
• 3-4-room apartments work well, where everyone has private space

Turn-key apartments – ready to move in
Medium-term tenants expect a fully equipped apartment, including:

• kitchen with dishes and appliances
• fast internet
• washing machine, sometimes a dishwasher
• workspace – comfortable desk and chair
• bedding and towels (optional)

Properties in developer condition without equipment will not work without a large investment in finishing.

Location – key to success

Best locations:

• proximity to business centers and office buildings: demand from relocated employees and companies
• near universities and language schools: for international students and exchange participants
• good public transport connections (metro, bus): tenants want quick and convenient access
• near hospitals and medical facilities: for contract doctors, nurses, patients coming for treatment
• attractive neighborhoods with good infrastructure: shops, gyms, cafés, parks – quality of life matters

What to avoid?

• lack of equipment – tenants will not buy furniture or cookware for a 3-month stay
• low-standard apartments – medium-term tenants expect hotel- or Airbnb-level comfort
• outskirts without good public transport – high risk of low demand
• shared bathrooms or lack of privacy – even in room rentals, comfort matters

4. How to find tenants?

In medium-term rental, it is worth using various acquisition channels:

• portals such as RentFlat Poland, Spotahome, Flatio, OLX, Otodom, Rentberry
• platforms for digital nomads: Airbnb (“monthly stays” filter), HousingAnywhere
• cooperation with relocation companies and HR agencies
• your own website with an offer and contact form

Ensure professional photos, a reliable description, and clearly defined rental terms.

5. How to build a stable business with medium-term rental?

Key steps:

• Start with one property, test the local market, and learn tenant needs.
• Choose your operating model – self-management or outsourcing to a property manager?
• Focus on customer service quality – quick response to issues, clear communication.
• Automate processes – reservation calendars, online contract signing, payment systems.
• Scale your portfolio – after gaining experience, invest in more apartments in attractive locations.

Summary

Medium-term rental is an excellent way to maximize rental income while reducing risk and time involvement. However, it requires solid preparation, market knowledge, and a strategic approach. If you are looking for an investment model that works well in uncertain times, this may be your best choice.