From the needs of everyday traveling professionals and digital nomads working remotely, to those caught up in disasters, mid-term rentals serve a vital role. They provide the additional time guests need under their specific circumstances.
Professional Short-Term Rental Operators in regulated or saturated markets need to find more solid footing to continue their business. Mid-term rentals offer a safer environment for these businesses, helping generate revenue for both the clients and the operators themselves.
What’s Driving the Growth of the Mid-Term Rental Market?
A 2022 report from HLC Equity and Business News Daily highlights that:
- The number of digital nomads from the U.S. has more than tripled in recent years, increasing from 4.8 million in 2018 to 15.5 million in 2021.
- The average age of a digital nomad in 2021 was 32.
- 66% of digital nomads are traditional remote employees; the remaining 34% are independent workers. This shift is largely due to the pandemic-driven remote work boom.
- 49% of digital nomads earn the same or more than they did in their prior office jobs.
- 44% of American digital nomads earn over $75,000 annually.
- Professionals in Healthcare, Technology, Oil and Gas, and Technical Services are key industry segments for mid-term rentals.
- These guests typically stay between three to six weeks, and up to six months.
- Demand also comes from those undertaking home renovations, needing temporary housing, individuals who have sold their homes, or are considering relocating and want to “test” a destination before committing.
In 2021, Airbnb reported that over 100,000 guests stayed for at least three months, with many moving between listings. This trend, representing nearly 20% of all searches on many Online Travel Agencies (OTAs), has only increased in subsequent years. Source
The Technology Behind Mid-Term and Short-Term Rentals
The technology supporting businesses in these rental environments is often outdated, based on legacy standards. A new entrant in the Property Tech space, Tempo, has followed these trends and identified a gap in innovation. Tempo provides a versatile platform supporting various rental operations simultaneously.
Tempo’s system is particularly helpful in emergency situations, like the disastrous fires in Lahaina. It allows operators to swiftly switch between short-term and mid-term rental modes to accommodate changing needs.
Tempo’s mission is to offer cutting-edge technology solutions, partnering with clients to ensure their platform meets current and future needs in the evolving rental environment.
Discover the future of property technology at hosttempo.com.
