How to Price Mid Length Stays (30+ Days) : Wheelhouse Blog

How to Price Mid Length Stays (30+ Days)

August 4, 2022 | Amelia Melching

Property managers are consistently seeing an uptick in longer stays. You’ll always have the weekenders, but the industry is seeing more and more one-month, three-month, or even six-month visits as of late.

Is accepting mid-length stays good for business? You might think you’ll miss out on peak-season potential bookings and lose the revenue of consistent (and more expensive) short-term rentals.

But what if we told you these longer bookings were excellent for your business model and key for revenue management and ops? The key is just knowing exactly how to price your mid-length stays.

We’ve reviewed the real-time insights and robust data at Wheelhouse and have learned:

Most companies don’t know how to leverage or optimize mid-length stays
Guests who book mid-length stays are 50% more likely to complete a repeat booking.
There’s an uptick of check-ins on the 1st and 15th of every month.

All the above insights tell us one thing: property managers must learn how to price mid-length stays.

And we’ll help you along the way with our dynamic pricing software for short-term rentals.

But first thing’s first:

How long are mid-length stays for rental properties?

Mid-length stays for rental properties are generally between 1-3 months or 30-90 days. Though some property managers would consider stays up to 180 days a mid-length stay, they are most commonly 3-4 months long.

Of course, many vacationers like spending more time in one place while traveling. However, mid-length stays often have a wide range of guests and travel purposes.

Why should property managers consider shifting to mid-term rentals?

Mid-term rentals offer property managers stability and efficiency. We’ll get into more “pros” later on, but if you’re a short-term rental owner, you should know that 1-3-month stays mean fewer unit turnarounds, less guest management, less cleaning, and improved occupancy even during off-peak seasons.

How to optimize rental pricing strategies for mid-term rental stays

Mid-length stays usually imply a discount compared to the ideal 3-day booking. You’ll have stability, but won’t you miss out on peak weekends and extra revenue?

Not if you learn how to optimize your mid-length pricing strategy! Here’s how to do it:

Use both predictive and reactive booking

Predictive booking uses historical data to anticipate present booking trends, such as booking window times and booking lengths depending on the time of year.

Reactive booking reacts to booking circumstances. For example, you might switch your pricing strategy to accommodate an uptick in demand.

The two booking models together are an important optimization strategy for mid-length stays.

Offer weekly and monthly discounts

Guests will be more likely to book a mid-length stay if you offer a discount.

Of course, dynamic pricing strategies can help you determine the exact figure for the discount — one that considers competition, market trends, on or off-season times, and more, like Wheelhouse!

Plan for calendar gaps with discounts

So you have a few mid-length stays books, but they’re filled with 2-day, 3-day, or even week-long gaps. You don’t need to take a loss on those days just to accommodate a mid-length stay.

Instead, maximize those in-between days by attracting new guests with discounts for the shorter stays.

Follow market fluctuations

Your Nashville 2-bedroom will be a hotter commodity on Airbnb during events like Summerslam than colder, off-season times. Similarly, you’ll garner more interest during weekends than days of the week.

Study your booking history (and competitors’ if you can) to find out what time of year rentals perform better. This research will help you maximize revenue by scheduling short-term bookings during peak season.

Focus on check-in days

Our data shows that most people check in on the 1st and 15th of the month — a huge spike, actually. Now, what happens if you’re trying to secure a mid-term stay from the 1st to the end of the month, but nobody’s booked your unit?

If you know that the second-most popular day to check in is the 15th, you’ll have to pivot your strategy to secure a check-in on that day. One way? Make the 15th unbookable on your calendar once you check out lead times for nearby bookings.

Set minimum stays

Now, there’s no one-size-fits-all solution for the perfect minimum stay number. AirDNA describes a common partiality for the 3-day minimum, but that doesn’t always mean improved revenue.

In fact, they illuminate how certain minimum stay numbers fluctuate in success depending on the location of the property.

A good rule of thumb is to think about how much time you have to give to your rental properties. If you’re balancing a lot and don’t want the headache of managing short-term stays, a week-long or even month-long minimum can work well.

Understand your booking window

A booking window (also known as lead time) is the time between a guest’s booking confirmation date and check-in date.

Hospitality business management experts assert that booking windows have steadily increased. But you won’t know the exact increase for your business until you look at the data.

Understanding your booking window will help you know when it’s time to shift pricing strategies.

Encourage re-booking

About 50% of mid-length stays go on to re-book your unit either that following month or again in the future. If you score a mid-length booking, you’ll want to try your absolute best to ensure your guest falls into the 50% that re-books.

Why?

You’ll have greater occupancy and stability, you’ll know they’re satisfied with the unit and your service, and it’s one less transition to manage.

Some ways to encourage re-booking include extra amenities, exciting upsells (with discounts), and discounts on the continued stay–especially if they book for longer than their first stay.

Mid-length Stays: Pros & Cons

So, what’s more profitable and simple? Mid-length stays or short-term stays? Let’s look at some pros and cons of mid-term accommodation.

Pros of mid-length stays

- Improved occupancy: The data shows us that about 50% of people booking mid-length stays end up repeating the booking for another month.
- Less work: The less turnover you have, the less time is spent finding new tenants and preparing the property for new renters.
- Responsible guests: Longer-term guests are more likely to be booking your stay as a living situation. While there’s no guarantee, you can end up with guests that are treating your property like their home, not a party.
- More legal leeway in some states: You might not be legally able to rent out your unit for less than 30 days in states like New York. Mid-length stays open more opportunities in those states and peace of mind that you’re operating according to local regulations.
- New guest market: Hello, digital nomads! Online workers are becoming more common, with people craving more flexibility and freedom after the coronavirus. Remote workers will flock to your listing if you offer an appropriate discount and a long enough stay for them to enjoy the city.

Cons of mid-length stays

- Missed opportunity for peak days and seasonal events: Maybe a guest booked a mid-length stay for April, but a popular music festival takes place in your rental location one weekend. You potentially miss out on extra income that you could receive for a peak weekend.
- Discounted rates: Often, mid-length stays are cheaper per-night than week-stays or weekend stays. But the plus side is that you're making income every night--not just the weeks or weekends you're booked.
- Cancellation risks: If you have renters booking with you for you 2-3 months --- and then cancel short notice -- you can end up missing out on large chunks of revenue.

Important Tips for Managing Mid-term Stays at Your Rental Property

A mid-term stay might require less turnaround for the next guest, but that doesn’t mean there’s no work at all.

Guests who book mid-length stays are looking for a temporary home — it’s more than a vacation. Extra amenities and communication go a long way.

Here’s how you can ensure your guests have a fabulous mid-length stay:

Have great communication with guests

Even though a guest stays a month or longer, you’re not solely a landlord. You’re a customer service provider, handyman, host, and caretaker all in one.

If a guest comes to you with an issue, they’ll appreciate a prompt response — even if it’s something small.

Communication should be prompt, open, and friendly — enough for guests to enjoy your interactions and trust you enough to book again.

Prepare your rental for mid-length stays

The best way to prepare for mid-length stays is to stock up on the essentials. Whether it’s paper towel rolls, cooking basics, or an extra set of bedsheets, these can help make a satisfied guest and reduce any back-and-forth required to provide these items.

Provide extra amenities

The honeymoon-phase couple might not care about making morning smoothies or washing their clothes for a weekend stay.

But a guest finally settling down for a few weeks might crave a little more. Extra amenities are paramount for a mid-length stay because they add an element of home comfort to a vacation.

Think about your current home — what couldn’t you live without? If coffee, wine glasses, and basic spices are essential, consider adding them to your mid-length rental.

Extra amenities are also a fantastic opportunity to upsell, which can be easily managed through an ancillary software.

Optimize Your Rental for Mid-term Bookings

Mid-term bookings are all about making your guests comfortable enough to see your unit as an exciting new home. Whether they’re trying out a new neighborhood or digital nomads exploring new destinations, mid-length guests can really pump up your revenue.

Don’t be discouraged by the monthly-stay discount on Airbnb. Mid-length stays are an excellent way to tap into new guest audiences and higher business efficiency.

Your next steps? Dynamic pricing to get the utmost value for every booking (mid-length or not). Try out Wheelhouse today for free!

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