The Oklahoma City rental market is booming, with both mid-term and short-term rentals gaining popularity. As a property owner or real estate investor, you might wonder which option is best for your goals. This guide will help you understand the key differences between mid-term rental vs. short-term rental Oklahoma City properties, allowing you to make an informed decision.

Understanding Mid-Term and Short-Term Rentals in Oklahoma City

Before we dive into the details, let’s define these two rental types. Short-term rentals in Oklahoma City typically involve stays of a few days to a few weeks. These are often vacation rentals or Airbnb-style properties. On the other hand, mid-term rentals usually last from one to six months, catering to corporate travelers, students, or people in between homes.

The choice between mid-term rental vs. short-term rental Oklahoma City options can greatly impact your investment strategy. Each type has its own target audience, income potential, and management needs. Let’s explore these factors to help you decide which is better for your situation.

Factors to Consider When Choosing Between Mid-term and Short-term Rentals:

1. Investment Goals Your choice between a mid-term rental vs. short-term rental

Oklahoma City property should align with your investment goals. Short-term rentals often provide higher nightly rates but may have more variable occupancy. Mid-term rentals typically offer more stable income, albeit at potentially lower overall returns.

According to recent data, the average daily rate for short-term rentals in Oklahoma City is around $120, while mid-term rentals average about $2,000 per month. However, these figures can vary based on location, property type, and amenities.

2. Target Audience

Understanding your ideal tenants is crucial when deciding between mid-term rental vs. short-term rental Oklahoma City options. Short-term rentals often attract tourists, weekend visitors, and business travelers. Mid-term rentals are popular among corporate relocations, traveling nurses, and temporary workers.

Recent trends show a growing demand for mid-term rentals in Oklahoma City, with a 15% increase in bookings for stays between 1-6 months compared to the previous year. This shift is partly due to the rise in remote work and extended business projects in the area.

3. Time Commitment

The time you can devote to property management is another key factor in the mid-term rental vs. short-term rental Oklahoma City debate. Short-term rentals typically require more frequent cleaning, check-ins, and guest communication. Mid-term rentals often need less day-to-day management but may involve more thorough tenant screening.

If you’re not able to manage the property yourself, you’ll need to factor in the cost of a property management company. In Oklahoma City, management fees for short-term rentals average around 25-30% of rental income, while mid-term rental management fees are typically lower at 8-12%.

Financial Considerations: Mid-term Rental vs. Short-term Rental Oklahoma City:

1. Income Potential

When comparing mid-term rental vs. short-term rental Oklahoma City options, income potential is a crucial factor. Short-term rentals can generate higher nightly rates, especially during peak seasons or events. However, they may also have more vacancies.

Recent data shows that well-managed short-term rentals in prime Oklahoma City locations can achieve an annual revenue of $30,000 to $50,000. Mid-term rentals, while generating lower monthly rates, often provide more consistent income, with potential annual revenues ranging from $24,000 to $36,000.

2. Expenses

When deciding between mid-term rental vs. short-term rental Oklahoma City properties, consider the ongoing expenses. Short-term rentals often have higher costs due to frequent cleaning, restocking supplies, and utility usage. Mid-term rentals typically have lower turnover costs but may require more significant repairs between tenants.

On average, operating expenses for short-term rentals in Oklahoma City can range from 30-40% of revenue, while mid-term rentals might see expenses of 20-30% of revenue.

3. Tax Implications

The tax landscape can differ significantly between mid-term rental vs. short-term rental Oklahoma City properties. Short-term rentals may be subject to hotel taxes, while mid-term rentals are often treated as traditional long-term rentals for tax purposes. It’s advisable to consult with a local tax professional to understand the specific implications for your situation.

Legal and Regulatory Aspects in Oklahoma City

When choosing between mid-term rental vs. short-term rental Oklahoma City options, be aware of local regulations. As of 2023, Oklahoma City requires short-term rental operators to obtain a license and comply with specific zoning laws. Mid-term rentals typically fall under standard residential leasing laws.

Recent changes in Oklahoma City’s short-term rental ordinance have set a cap on the number of non-owner occupied short-term rentals in residential areas. This could impact your ability to operate a short-term rental, depending on your property’s location.

Conclusion

Choosing Between Mid-term Rental vs. Short-term Rental Oklahoma City: The decision between mid-term rental vs. short-term rental Oklahoma City properties depends on your individual goals, resources, and market conditions. Short-term rentals offer the potential for higher returns but require more active management. Mid-term rentals provide more stable income with less day-to-day involvement.

Consider your investment goals, target audience, time commitment, and financial expectations when making your choice. Stay informed about local regulations and market trends to ensure your strategy remains effective.

Need help deciding between mid-term rental vs. short-term rental Oklahoma City options? Our team of experienced property managers can provide personalized advice tailored to your investment goals. Contact us today for a free consultation and take the first step towards maximizing your rental property returns in Oklahoma City.