Lately, we have been observing a shift of many owners and property management companies from short-term to mid-term rentals, a model between short-term and long-term leasing. To explore what truly makes a property suitable for mid-term, we spoke with Ms Theodoridou, development team leader at HOUSELOFT, specializing in medium- to long-term leasing.
Location and suitability of the property
As she explains, the first and most crucial element is the location. “The mid-term tenant is interested in proximity to what concerns them: Work, studies, access to means of transport,” she notes. The location must serve the purpose of the stay, whether we are talking about an urban property or a tourist area, and it does not concern exclusively professional purposes, as is often assumed.
The second criterion is the suitability of the property itself for medium-term stay. Ms Theodoridou emphasizes that a mid-term property must be “friendly in terms of living” and meet the appropriate specifications so that the tenant can stay medium- to long-term and not just for a few days, as in a typical short-term rental.
“We have seen, based on measurements, that approximately 5% of the total properties that are ‘running’ on the market meet the needs of mid-term rental, while around 2% of properties actually meet the needs of short-term rental,” she points out, underlining how limited the real availability of suitable properties is.
Pricing, contracts and practical difficulties
The different nature of demand is also reflected in the pricing strategy. At HOUSELOFT, as Ms Theodoridou explains, a clear separation of properties has been made according to use: “What we have done in terms of mid-term leasing is to separate – or if you like, distinguish – the properties that are in the medium- to long-term category and are not rented short-term. That is, they are exclusively for mid-term rental and for the needs of this specific audience.”
The needs of short-term rental customers have very little overlap with the needs of the mid-term rental audience, which makes a separate pricing and management strategy necessary.
On the issue of legal protection, the answer is clear: A contract in every case. “Generally, the articles and clauses used are those of a standard urban lease agreement and the special conditions that the mid-term lease has,” she notes. These clauses mainly concern the transactional relationship between owner and tenant. Who pays what, when and in what way.
As for the difficulties, at a procedural level the main questions relate precisely to these issues. “In terms of procedures, the main difficulties probably concern questions and queries about who pays what, when and why,” she notes. On the financial side, the challenge shifts to the duration of the lease: “On the financial side, it mainly concerns the proper management of the lease term so that it also delivers the expected results.”
Safety, profitability and strategy for owners
Safety, profitability and strategy for ownersOn the issue of the safety of the property, Ms Theodoridou is clear: “Here there are two main elements. The first concerns – of course – the property being insured, which is also mandatory, and the other is the amount of the security deposit that will be required and agreed.”
For damages, prevention plays a decisive role: “As far as damages are concerned, with regular inspections from the very first month and then with consistency and regularity, these are prevented.”
Regarding whether mid-term is more profitable or simply more stable, the answer depends on the property itself. “It depends on the performance of the property. If the property in short-term does not deliver the expected results, it may have a second chance in mid-term leasing, always of course with the correct lease duration. As for the second question, yes, it is more stable,” she stresses.
At legal and tax level, the particularities of mid-term rentals in Greece are, as she says, “far fewer if we compare them with short-term rental,” which reduces the degree of complexity for the owner and the manager.
Read also- Mid-term Airbnb: Everything you need to know about this legal and profitable option
The 3 key steps to entering the mid-term property market
What would Ms Theodoridou advise, then, someone who wants to enter the mid-term market now?
- First, “To correctly target the geographical areas where there is real need and demand” – near universities, large companies, hospitals or transport hubs.
- Second, to consciously choose the types of properties to be managed so that they match the profile of the audience they want to attract.
- And third, to develop economies of scale: “A portfolio of properties that can deliver the expected financial results in relation to operating cost.”
Mid-term rentals as a complementary strategy
For those already active in short-term rental, mid-term leasing is not just an alternative. It is a complementary strategic tool that can balance seasonality, stabilize income and give a “second chance” to properties that do not perform as the owner would like. The goal is not only to find the next tenant, but to properly design the positioning of each property within the portfolio of a hospitality market professional.
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