Realities & Common Misconceptions in Furnished Mid-Term Rentals

Running a furnished rental business for stays beyond the short-term cut-off isn’t always straightforward. Here I will clear up some common myths and misunderstandings about renting furnished properties on a monthly or longer basis. Whether you’re in the mid-term or long-term furnished rental game, I hope these insights will help you avoid legal missteps and run a smooth, professional operation.

📝Is Your Lease Agreement Missing Something Important?

Before we continue, let’s talk about your Lease Agreement. It’s your foundation for a smooth, professional operation, but are you sure it includes the clauses you need?

Download my free guide, “17 Must-Have Lease Clauses,” and discover how to:

✅ Avoid missteps with essential clauses that are often overlooked or mislabeled.

✅ Strengthen your lease with terms tailored specifically for furnished rentals.

Myth 1. You don’t need a Lease for monthly stays if you rent on Airbnb because Airbnb has your back

While Airbnb might offer some support for disputes, I would not take a chance and rely on them as your legal safety net. A solid Lease Agreement is absolutely essential if you're renting for a month or more. That’s your contract, your rules, and your fallback if things go south. Even Airbnb recommends you do so; check this out: Things to consider before hosting monthly stays - Airbnb Help Center

Tip: For any monthly stays, run a credit and background check, and have a signed Lease Agreement in hand before giving anyone access to the property. Protect yourself, your property, your tenants and even your neighbors with a Lease.

Remember: this isn’t short-term rental land!

Myth 2. Mid-Term Rental (MTR) is anything above 30 days and less than 12 months

Short-Term Rental (STR) definitions vary by state: some say it’s anything under 28 days, others say under 30, 60, or even 90 days. Here’s my main point: if you’re renting longer than what your state or local county defines as STR, you’re in MTR territory, legally closer to Long-Term Rental (LTR).

Do This: Google these phrases to stay informed:

• “Vacation rental permit” or “short-term rental definition” in [your area]: This tells you the official cut-off for STRs in your state or county, and whether you might have to obtain an STR permit and collect local lodging taxes on STRs.

• “When does a guest become a tenant in [your state]?” Check this because it’s often based on the length of a continuous stay. For example, if the threshold is 30 days, on day 30, they could legally be your tenant, lease or no lease.

These definitions are very important because once they cross that line, they’re legally a tenant - with tenants' rights, and you’re officially a landlord - with landlord obligations.

Myth 3. Keep leases short and don’t let “guests” receive mail at the property to avoid squatters and tenants’ rights

The idea that shorter leases or preventing mail access stops tenants from gaining rights is misleading. Here’s why: a “squatter” is someone who moves in without any legal permission, aiming to stay long-term. However, guests who initially had permission to occupy your property—whether through Airbnb, a lease, or any rental arrangement—aren’t considered squatters, even if they overstay. They’re holdover tenants, and holdover tenants still have rights.

The reality is in many states, once a person stays a certain number of consecutive days, they’re legally recognized as a tenant with tenants’ rights, even if they don't receive mail at your property. In other words, short leases or mail restrictions don’t prevent them from becoming your tenant.

Tip: Read up on your local laws about holdover tenants and squatters, and have a solid holdover clause in your Lease Agreement. So what am I saying here? Have a signed Lease Agreement—not just a page of House Rules in your listing—to manage your risks legally and avoid unwanted surprises.

Myth 4. If I accept a 12-month lease request, it’s no longer MTR

If someone wants 12 months and meets your criteria, and they're willing to pay a premium rate for furnished living—Why say no? 🤯 MTR is not a rule—it's just a label describing your target renters: travel workers, individuals or families displaced from their home due to an insurance-covered loss, or people in transition between selling and buying a new house, just to name a few. You’re in a furnished rental business, renting longer than the cut-off for STRs in your state/county. Period.

Bottom Line: If 12 months at your rate sounds good to you, go for it. You’re in the business for fewer turnovers than STR and higher rates than LTR, so make MTR work for you, not the other way around.

Myth 5. You can hike the rent if an insurance agency inquires about your property

My take on this is just because an insurance company is footing the bill, it doesn’t mean it’s time for a cash grab. Honor the rate where they found you, unless you genuinely haven’t updated it in a long time and it no longer covers your expenses. If you do adjust, make it fair—remember, referrals are our bread and butter, and jacking up prices when the inquiry comes from an insurance agent can make the furnished rental industry look bad.