Why mid-term and long-term rentals offer stability in a shifting regulatory landscape
As cities tighten the reins on short-term rentals (STRs), more property owners are pivoting toward mid-term rentals (MTRs) and long-term rentals (LTRs) as safer, more stable investment options. Whether you’re looking to build passive income or avoid compliance headaches, MTR and LTR strategies provide a compelling path forward. Here’s why these models are rising in popularity, and how they can help you earn with peace of mind.
The Rising Tide of Short-Term Rental Regulations Short-term rentals—those typically lasting under 30 days—have become increasingly controversial in major cities worldwide. These properties, often listed on platforms like Airbnb, have been linked to housing shortages and neighborhood disruption. In response, governments are cracking down:
Barcelona, Spain has announced plans to ban all short-term holiday apartment rentals by 2028 in an effort to combat rent inflation and housing scarcity (Reuters).
Portland, Maine reduced its cap on non-owner-occupied STRs from 400 to around 285, signaling a strong push to protect housing availability (Maine Public Radio).
Across the U.S., states are expected to introduce over 300 STR-related bills in 2025 alone, with at least 66 likely to become law (Rent Responsibly).
These changes reflect a growing desire to prioritize community stability and housing access—but they also create uncertainty for short-term hosts.
The Advantages of Mid-Term and Long-Term Rental Strategies
Fewer Regulatory Hurdles: MTRs (typically 1–12 months) and LTRs (leases of 12 months or more) generally fall outside the scope of strict STR regulations. This means fewer permits, less oversight, and a lower risk of noncompliance penalties (AvenueWest).
More Predictable Income: Compared to the seasonal volatility of STRs, MTRs and LTRs offer reliable, month-to-month income. This is especially appealing for retirees, families, and busy professionals who value financial consistency (Mofi Loans).
Lower Turnover, Lower Costs: With tenants staying longer, property owners spend less on marketing, cleaning, and onboarding new guests. That’s not just money saved—it’s also time and effort reclaimed.
Balancing the Risks While MTRs and LTRs provide many benefits, they’re not entirely risk-free. Long-term leases can make it harder to remove problematic tenants, and property damage is harder to monitor over longer stays. However, these risks can be mitigated through rigorous screening, clear lease terms, and regular property checks.
Conclusion: In an era of evolving housing laws, mid-term and long-term rental strategies offer a welcome sense of predictability. They reduce exposure to changing regulations while delivering stable returns. For property owners looking to earn ethically, efficiently, and with fewer surprises, MTRs and LTRs may just be the future-proof strategy you’ve been waiting for.
Thinking about a shift to mid- or long-term rentals? Our guide Why Pivot to a Different Type of Rental walks you through the reasons, risks, and real rewards of a smarter rental strategy.
References:
AvenueWest. "Why Mid-Term Rentals Are the Real Future of Real Estate Investing." AvenueWest, 2023. https://www.avenuewest.com/why-mid-term-rentals-are-the-real-future-of-real-estate-investing
Mofi Loans. "Mid-Term Rentals: A Safer Bet for Steady Income?" Mofi Loans, 2022. https://www.mofiloans.com/blog/mid-term-rentals-steady-income
Maine Public. "Portland Reduces Cap on Short-Term Rentals to Protect Housing Stock." Maine Public, 2024. https://www.mainepublic.org/news/2024-02-16/portland-reduces-cap-on-short-term-rentals-to-protect-housing-stock
Rent Responsibly. "2025 Legislative Outlook: What to Expect for Short-Term Rental Laws." Rent Responsibly, 2024. https://www.rentresponsibly.org/2025-legislative-outlook
Reuters. "Barcelona to Ban Short-Term Rentals by 2028 in Housing Push." Reuters, 2024. https://www.reuters.com/world/europe/barcelona-ban-short-term-rentals-by-2028-housing-push-2024-06-21
