Do you own a multifamily home or apartment building? If so, have you ever considered leasing your unit to a mid-term rental company? Mid-term rental arbitrage is an opportunity that allows landlords like you to experience passive income without the headache of managing tenants. Let’s take a look at how mid-term rental arbitrage can benefit both landlords and lessees alike.

What is Mid-Term Rental Arbitrage?

Mid-term rental arbitrage occurs when a landlord leases their property to a mid-term housing provider – typically for 1 year or more – instead of renting it out directly to an individual tenant. The mid-term rental provider furnishes, decorates, and then subleases the unit at a higher rate to corporate clients, traveling medical professionals, and other renters for stays of 30 days or longer. By taking on the risk and responsibility of managing the property, the mid-term housing provider makes a profit while providing landlords with guaranteed rent payments.

What Are The Benefits To Landlords?

The primary benefit for landlords is that they receive guaranteed rent for their property without any of the headaches associated with being a landlord such as tenant screening, maintenance, and eviction procedures. Additionally, mid-term housing providers often invest in improvements to their properties that can increase rent prices over time and potentially boost overall property value. Furthermore, because apartments are leased for 1 year blocks or longer, this type of arrangement provides landlords with long-term stability that traditional leases may not be able to provide.

How Can I Get Started With Mid-Term Rental Arbitrage?

If you are interested in becoming a landlord partner in mid-term rental arbitrage, there are several steps you will need to take before you can start earning passive income from your property. First and foremost, you must find an experienced mid-term rental provider who understands the local market and has established relationships with corporate clients and other mid term renters in your area. Stellar Housing Solutions has extensive experience working with landlords on mid-term rentals in northern New Jersey; we would be happy to discuss our services further if you are interested in learning more about this type of investment opportunity.

Mid term rental arbitrage offers numerous benefits for landlords looking for ways to passively earn income from their properties without having to manage tenants directly. From guaranteed rent payments over long periods of time to potential upgrades that could improve overall property value, there’s no doubt that this type of investment opportunity should be seriously considered by any landlord looking for ways to maximize their profits while minimizing risk. If you’d like more information or have questions about how Stellar Housing Solutions can help make mid term rentals work for you as a landlord partner, please don’t hesitate to contact us today!