The Midterm Rental Playbook: Why ADUs Are Perfect for 1–6 Month Stays

When most people think about renting out an ADU, the options usually seem pretty binary: either go all in on a short-term rental (STR) through Airbnb or lock into a long-term lease. But there’s a third path that is often overlooked, and in many ways it’s the perfect fit for an ADU: the midterm rental. These are furnished stays that typically last between one and six months targeting corporate travelers, academics, and travel nurses.

Two-story, two bed, two bath "Ormewood" ADU nearing completion that will be a rental unit in Ormewood Park

Midterm rentals combine the best of both worlds. Compared to short-term rentals, they are dramatically less work—the unit turns over just three or four times a year instead of every week. They avoid the licensing requirements that come with operating an STR, and there’s no need to deal with the churn of new guests or platform fees. On the other hand, they’re more flexible and profitable than a year-long lease. If a tenant isn’t the right fit, the commitment is only for a few months. And if the tenant is a great match and wants to extend, even better. Every turnover is also a chance to have the unit deep cleaned and inspected, something that doesn’t happen when a tenant stays in place for years at a time.

Street facing, corner lot ADUs, like this one in Chosewood Park, provide additional privacy for tenants via separate, side street parking and entry

ADUs are especially well-suited to this kind of rental. They offer the privacy and independence of a standalone unit without being oversized or impersonal. Travel nurses, for example, often look for something close to a hospital that is private, comfortable, and reasonably priced. Young professionals relocating for a new job or internship have similar needs. A right-sized ADU is a natural fit, filling a gap between corporate apartments that require twelve-month leases and spare bedrooms listed for rent.

ADUs provide tenants with privacy and flexible lease terms without hidden fees common with apartments

The process of setting up a midterm rental is simple and repeatable. We recommend starting with Furnished Finder, a platform that charges a small annual fee but doesn’t take a cut of rent like Airbnb. Furnished Finder is purely a marketing platform, and in our experience, most inquiries arrive about six weeks before a unit becomes available. Once an inquiry is received, it helps to schedule a phone call to introduce the property, answer questions, and get to know the prospective tenant. If the tenant wishes to move forward, the next step is a background check through TransUnion Smart Move. The fee is usually $25 and is customarily paid by the tenant. Corporate travelers are typically background-checked as part of their professional assignments, but Smart Move provides an extra layer of security and peace of mind.

This ADUs proximity to the Edgewood MARTA station is a selling point for prospective tenants

Once the background check is clear, the lease can be prepared and signed using DocuSign. This provides an efficient way to finalize documents without meeting in person. At the same time, payment is set up through Apartments.com, which facilitates direct transfers between landlord and tenant at no service charge. Once the lease is signed and the deposit collected, the Furnished Finder listing can be updated with the new dates, and additional inquiries are no longer considered.

Midterm renters are often considering planting roots. The neighborhood experience of ADUs provide the perfect opportunity to explore a city and determine if it's a long term fit.

Many hosts set a ninety-day minimum, which still generates plenty of interest. For those just starting out, a thirty-day minimum can help build reviews more quickly. Reviews are critical, and Furnished Finder makes it simple to request them. A good practice is to send the review link at the same time the tenant’s security deposit is returned. After a handful of strong reviews, a listing often begins to market itself.

Like any rental model, midterm stays come with trade-offs. They may not generate as much revenue as short-term rentals during peak season, but they generally outperform traditional leases while requiring far less work than Airbnb hosting. Units must be furnished, which means a higher upfront investment, but demand for furnished midterm rentals is significant while supply remains scarce. With most corporate apartments requiring twelve-month leases, a flexible three-month stay is an attractive alternative for many tenants.

The "East Lake" Studio ADU, at 308 sf, is a very marketable size and price point. Studio apartments make up just 2% of all housing inventory.

In the end, midterm rentals strike a balance that makes sense for ADU owners. They provide steady income, attract professional and respectful tenants, and require far less time and effort than managing an Airbnb. A detached ADU becomes a smart, low-maintenance way to generate income while supporting people who need a comfortable place to land for a few months.  If we can help you build an ADU to meet this growing rental demand, we’d love to hear from you!

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