The Rise of Mid-Term Rentals in Los Angeles: What Property Owners Need to Know

Short-term rentals have long dominated the conversation around alternative leasing models, especially in a tourist-heavy region like Los Angeles. But a growing demand trend—mid-term rentals—has quietly taken hold among property owners in Southern California looking for more stability, flexibility, and legal compliance.

Whether you own a single-family home in Silver Lake or a multifamily unit in Culver City, mid-term leasing could be the sweet spot between long-term tenants and short-term vacationers. Here’s what Los Angeles landlords and investors need to know about tapping into this rising market segment.

What Are Mid-Term Rentals?

Mid-term rentals (MTRs), also known as monthly rentals or medium-term housing, refer to fully furnished rental properties leased for 30 days to under one year. This format appeals to:

• Traveling professionals (e.g., nurses, engineers, consultants)
• Relocating families or individuals between homes
• Remote workers testing out new cities
• Graduate students or interns on short-term programs

Unlike short-term rentals, MTRs don’t fall under the same tight restrictions in many cities, making them an appealing option for compliance-conscious landlords in Los Angeles.

Why the Shift Toward Mid-Term Rentals?

The appeal of mid-term rentals has grown due to shifting lifestyle patterns, regulatory pressure on short-term rentals, and remote work trends.

Key drivers include:

• Tightened enforcement of LA’s Home Sharing Ordinance (restricting short stays)
• Increased demand for furnished flexible housing
• Property owners seeking stable income without year-long lease obligations
• Travelers wanting more space than hotels without committing to permanent moves

In many Southern California markets, mid-term rentals allow owners to charge premium rates—especially if the unit is furnished and well-located—without running afoul of city short-term laws.

Are Mid-Term Rentals Legal in Los Angeles?

Yes—but with important conditions.

Mid-term rentals (30 days or more) generally avoid the strict registration and tax rules imposed on short-term vacation rentals. However, landlords must still comply with:

• Local zoning laws
• Tenant protection ordinances (such as eviction protections for stays over 60 days)
• Fair Housing laws (e.g., avoiding discriminatory language in ads)

Always have a lease agreement tailored to the mid-term structure and consult a legal advisor to ensure your rental doesn’t accidentally fall under short-term regulation.

How to Set Up a Mid-Term Rental

1. Furnish the Unit Appropriately

   Provide all essentials for a 30+ day stay:

   • Full kitchenware and linens
   • Wi-Fi and basic utilities
   • Washer/dryer access
   • Workspace or desk area

2. Price Based on Flexibility

While MTRs don’t command nightly rates like Airbnb, they can still exceed long-term rents by 20–30%, especially for high-demand units near hospitals, studios, or business hubs.

3. Advertise on the Right Platforms

Consider using:

• • Furnished Finder (popular with traveling nurses)
  • Airbnb (with 30+ day minimums)
  • Zillow, Craigslist, or Facebook Marketplace (with clear lease terms)

4. Use a Custom Lease Agreement

Avoid standard one-year lease templates. Your lease should clearly outline:

• Start and end dates
  
• What’s included (utilities, furniture, etc.)
  
• Security deposit terms
  
• Early termination and extension options

Tax Implications of Mid-Term Rentals

Unlike short-term rentals, mid-term stays are often exempt from transient occupancy tax (TOT) in most jurisdictions. However, you’ll still need to:

• Report rental income on your state and federal taxes
  
• Track expenses for deductions (e.g., cleaning, furnishings, utilities)
  
• Review if MTR income qualifies for passive income rules or real estate professional status

Consult with a CPA familiar with Los Angeles rental property tax law to optimize your filing.

Is It Worth It?

Mid-term rentals are especially attractive for:

• Landlords wary of eviction moratorium complexities
  
• Investors with furnished units near hospitals or business districts
  
• Owners who want more control over tenant turnover and upkeep

However, MTRs may require more frequent cleaning, communication, and management than a traditional lease. This makes them ideal for landlords using a property management company in LA or those able to invest time into screening and onboarding each guest.

Final Thoughts

As tenant preferences evolve and housing laws tighten in Los Angeles, mid-term rentals offer a practical and legal way to stay flexible without sacrificing profitability. For owners of multifamily properties, MTRs can serve as a hybrid strategy—some units for traditional leases, others furnished for 3–6-month terms.

At BFPM Inc. we help Southern California landlords optimize leasing strategies for changing markets, from furnished unit staging to tenant screening and compliance consulting.

Want to explore mid-term rentals for your LA property? Contact us at info@bfpminc.com for a free property income analysis.