Short term and mid term rentals

by Liz Nitz

With the banning of new short term rental properties in the city of Bozeman, investors are wondering if a Bozeman property is right for their portfolio. Even though new short term rental properties aren’t allowed, we think that considering property for mid term rentals is a very viable investment strategy.

 

What is a mid term rental? In Bozeman, anything over 28 days is considered a mid term rental. The majority of mid term rentals are furnished. A short term rental is less than 28 days and is also furnished. See the chart below for a comparison between short term and mid term rentals in Bozeman.

 

Short term rental

Term 0-28 days

Licensed Yes

Inspected Yes

Furnished Yes

Lodging tax Yes

Occupancy 65% (Bozeman average)

 

Mid term rental

Term 28+ days

Licensed No

Inspected No

Furnished Yes

Lodging tax No

Occupancy 85+% (Based on our experience)

 

 

Many mid term rentals end up being rented for months at a time. The most frequent users of mid term rentals are travelling health care professionals, people needing transitional housing as they move to Bozeman and remote workers spending a ski season or summer in Montana. 

 

Mid term rentals are advertised on the same platforms as short term rentals and then a few more such as Furnished Finder and Zillow. With platforms like Zillow and Furnished Finder, fees are not paid by the owner with every reservation; there is just a minimal yearly subscription fee. However, there is a bit more upfront work as an owner or property manager will still need to do a rental agreement instead of relying on the automatic booking of a platform like Airbnb.

 

Our experience in Bozeman has been that mid term rentals have higher occupancy rates throughout the year compared to short term rentals. Nightly rates at the short term rentals are higher; and thus far, short term rentals are still out performing the mid term rentals in total gross revenue. But once the expenses like licensing and cleaning are added in, the net profit of a mid term rental is a lot closer to a short term rental than most people would think.

 

If you’d like to discuss mid term rentals and if they are fit for your portfolio, please get in contact with us!



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7775 Bridger Shadows Road, Bozeman, Montana 59715, Bozeman, Montana 59

7775 Bridger Shadows Road, Bozeman, Montana 59715, Bozeman, Montana 59715

5Bedroom(s)
5Bathroom(s)
20Acre
5,493Sqft
Impeccably constructed new home located in Bridger Canyon. Boasting almost 6000 +/- sq ft and over 8500+/- sq ft of pure luxury under roof, this home and barn is located on 20 acres in coveted Bridger Canyon. Located just ten miles from downtown Bozeman and 10 minutes from Bridger Bowl Ski area, this brand-new custom home has it all.
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140 Village Crossing Way 3H, Bozeman, Montana 5971, Bozeman, Montana 5

140 Village Crossing Way 3H, Bozeman, Montana 5971, Bozeman, Montana 59715

2Bedroom(s)
2Bathroom(s)
1,183Sqft
Welcome to your beautiful new home at 140 Village Crossing Way, nestled in downtown Bozeman! This turn-key property offers a perfect blend of modern comfort and breathtaking natural beauty, boasting stunning views of the majestic Bridger Mountains. The open-concept layout of the living area creates an inviting atmosphere, ideal for entertaining or simply unwinding after a day of adventure.
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315 N Tracy Avenue 406, Bozeman, Montana 59715, Bozeman, Montana 59715

315 N Tracy Avenue 406, Bozeman, Montana 59715, Bozeman, Montana 59715

1Bedroom(s)
2Bathroom(s)
1,301Sqft
With incredible southwestern views from multiple angles from this fourth floor unit in downtown Bozeman’s premier new luxury condominium building, The Henry, you’ll feel like you’re living in the clouds while only being blocks from Main Street.
$1,320,000

140 Village Crossing Way 2G, Bozeman, Montana 5971, Bozeman, Montana 5

140 Village Crossing Way 2G, Bozeman, Montana 5971, Bozeman, Montana 59715

1Bedroom(s)
1Bathroom(s)
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Don’t miss this Village Loft Condo in the heart of downtown Bozeman offering exceptional unobstructed Bridger Mountain views from second floor balcony, perfect for enjoying the fresh Montana air.
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937 Auger Lane, Bozeman, Montana 59718, Bozeman, Montana 59718

937 Auger Lane, Bozeman, Montana 59718, Bozeman, Montana 59718

5Bedroom(s)
2Bathroom(s)
0.19Sqft
2,917Sqft
Welcome to your dream home in the sought-after Flanders Mill subdivision! This stunning single-family residence boasts 5 bedrooms and 2.5 bathrooms, offering ample space for comfortable living and entertaining. As you step inside, you'll be greeted by an inviting open floor plan featuring light hardwood floors that flow seamlessly throughout the main level.
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718 W Babcock Street 204, Bozeman, Montana 59715, Bozeman, Montana 597

718 W Babcock Street 204, Bozeman, Montana 59715, Bozeman, Montana 59715

1Bedroom(s)
1Bathroom(s)
720Sqft
Welcome to the SOBO Lofts downtown Bozeman! One of the very few condo complexes in DT Bozeman to allow for short term rentals. Efficiently laid out is this contemporary 720 square feet, 1 bed, 1 bathroom, with den perfect for a sofa bed, Murphy bed for additional sleeping quarters, or dedicated office space. Modern finishes, SS appliances, washer and dryer, with dedicated parking.
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519 W Babcock, Bozeman, Montana 59715, Bozeman, Montana 59715

519 W Babcock, Bozeman, Montana 59715, Bozeman, Montana 59715

5Bedroom(s)
3Bathroom(s)
0.15Sqft
2,945Sqft
Explore the enchantment of this charming craftsman-style home nestled in downtown Bozeman. Numerous original features, including exquisite hardwood flooring, beautifully preserved cabinetry, and ceiling decor that echoes the timeless elegance of its construction. This residence is a true homage to craftsmanship and character.
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136 Stewart Loop, Bozeman, Montana 59718, Bozeman, Montana 59718

136 Stewart Loop, Bozeman, Montana 59718, Bozeman, Montana 59718

4Bedroom(s)
2Bathroom(s)
1.30Sqft
2,294Sqft
On 1.3 acres. this home offers 4 bedrooms, 3 car attached garage, and separate ADU. So much to offer here! Main home has great floor plan with 3 bedrooms on the main level, including the primary suite with en-suite bathroom & walk-in closet. Two additional bedrooms and 1 full bath also on the main level.
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1300 Harper Puckett Road, Bozeman, Montana 59718, Bozeman, Montana 597

1300 Harper Puckett Road, Bozeman, Montana 59718, Bozeman, Montana 59718

5Bedroom(s)
3Bathroom(s)
2.28Sqft
3,670Sqft
Centrally located in the progressive mountain town of Bozeman, Montana, an exquisite 2+ acre lot offers a unique opportunity to build a high-end contemporary mountain home with commanding Bridger Mountain Views.
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