Introduction

When property owners in Fort Worth explore the best rental strategy, understanding the differences between short-term, mid-term, and long-term rentals becomes essential. While short-term rentals (STRs) like Airbnb can promise high nightly rates, they come with a unique set of challenges, particularly in Fort Worth. For property owners seeking similar or better cash flow without the regulatory and tax burdens of STRs, mid-term rentals (MTRs) emerge as a smart, lucrative solution. Texas Corporate Homes (TCH) specializes in managing properties with leases longer than 30 days, offering a compliant, profitable path for real estate investors.

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Understanding Short-Term Rentals (STRs) in Fort Worth

STRs in Fort Worth are defined as properties rented for guest lodging for periods ranging from 1 to 29 days. While STRs can be profitable, they come with significant hurdles:

• Occupancy Taxes: STR operators must collect and remit a 9% Hotel Occupancy Tax and comply with additional city, state, and special taxes, totaling a substantial tax rate. Failure to accurately collect and report these taxes can lead to fines, penalties, and potential legal issues.
• Compliance and Zoning Restrictions: Short-term rentals are only allowed in specific zoning districts, such as mixed-use and commercial areas. STRs operating in prohibited residential zones can face significant fines, up to $2,000 per violation, and repeat offenders risk losing their permits.
• Strict Reporting Requirements: STR operators must register their properties, obtain a valid permit, and adhere to monthly tax filings and operational rules.
• Constrained Supply Due to Regulations: The stringent zoning rules and regulatory framework limit the availability of compliant STRs, making it challenging for property owners to maximize occupancy without facing potential fines and restrictions.

Enforcement Actions: The City of Fort Worth has increased its monitoring and enforcement of STR regulations. In 2023 alone, more than 180 citations were issued, with substantial penalties for non-compliance. The city also contracts third-party companies to monitor and identify illegal STRs.

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Why Mid-Term Rentals (MTRs) Are a Superior Alternative

Texas Corporate Homes (TCH) offers property owners a way to bypass the complexities and compliance burdens associated with STRs by focusing exclusively on mid-term rentals, defined as leases lasting between 30 days and one year. This strategy aligns with Fort Worth’s regulations, providing legal, flexible, and profitable options for property owners. Here’s why MTRs through TCH are ideal:

• No Occupancy Taxes: Unlike STRs, MTRs do not require the collection or reporting of hotel occupancy taxes, eliminating a significant administrative burden and potential financial risk.
• Simplified Compliance: Mid-term rentals avoid the stringent zoning regulations and permit requirements of STRs, providing property owners with more freedom in property use.
• Steady Cash Flow: MTRs through TCH generate consistent, reliable income, often matching or exceeding STR revenue without the seasonal fluctuations and high turnover rates.
• High-Quality Tenants: MTRs attract corporate relocation clients, insurance policyholders needing temporary housing, and traveling professionals—all stable tenant groups that tend to respect properties and reduce wear and tear.
• Turnkey Management and Tenant Communication: Property investors benefit from TCH’s partnerships with over 35 corporate, insurance, and temporary housing companies, which drive renter demand. TCH’s full-service management handles everything from property upkeep to tenant communication. Get started today.

Learn more about the difference between STRs, MTRs, and Long-term Rentals.

Why Texas Corporate Homes is the Premier Choice for Mid-Term Rentals

1. Proven Expertise: With a portfolio of over 140 managed properties across Texas, TCH has extensive experience in optimizing mid-term rental strategies for maximum cash flow.

2. Stable Income and Higher Returns: TCH-managed properties provide consistent cash flow, generating 50-100% more income than traditional long-term rentals and offering more stability compared to STRs.

3. Reduced Wear and Tear: The quality of tenants in MTRs—typically corporate clients and professionals—results in less property wear and tear, enhancing property longevity and reducing maintenance costs.

4. Turnkey Property Management: TCH provides comprehensive property management services, including marketing, tenant placement, maintenance, and ongoing communication. This allows property owners to enjoy the benefits of mid-term rentals without the hassle of day-to-day management.

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How STRs Can Transition to MTRs with TCH

For property owners currently operating STRs in Fort Worth, the shift to a mid-term rental model can be seamless with TCH. Here’s how:

• Evaluation and Transition Planning: TCH assesses your property to determine its suitability for mid-term rentals, taking into account location, amenities, and market demand from out proprietary internal data (TCH never uses data aggregators like AirDNA).
• Professional Furnishing Packages: TCH offers professional furnishing options that appeal to corporate clients and longer-term renters, ensuring your property is competitive in the mid-term rental market. TCH will work with the existing furnishes as well.
• Tenant Sourcing and Management: TCH leverages partnerships with over 35 corporate, insurance, and temporary housing companies to fill your property with reliable tenants who need housing for 30+ days.

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Conclusion

Mid-term rentals offer an optimal solution for property owners in Fort Worth who want to maximize cash flow without the regulatory hurdles, taxes, and compliance demands of short-term rentals. By partnering with Texas Corporate Homes, you can transform your STR into a profitable, compliant, mid-term rental property and enjoy consistent income and peace of mind.

Interested in learning more? Explore how Texas Corporate Homes can help you make the transition and maximize your property’s potential  here.

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