Lodgify
Industry

What is a Long-Term Rental?

Updated 2026-05-28

A long-term rental refers to the leasing of a residential property for a prolonged duration, generally a minimum of six months but most commonly for a one-year term. These arrangements are governed by a legally binding contract, known as a lease, which outlines the terms and conditions for both the landlord and the tenant.

This model contrasts with short-term rentals, which involve stays of days or weeks and cater to travelers and tourists.

Join the Lodgify newsletter

Once a month, get free templates, expert tips for hosts, industry news, webinar invitations, and more.

How it works

Property owners or managers market their long-term rental property through online listing sites, real estate agents, or local advertisements. Prospective tenants submit an application, which typically includes background and credit checks.

Once a suitable tenant is selected, both parties sign a lease agreement detailing the rent amount, payment schedule, duration of the tenancy, and rules of occupancy. The tenant then moves into the property and pays rent on a monthly basis for the duration of the lease term.

Why it matters

For property owners, long-term rentals offer a consistent and predictable income stream with significantly lower tenant turnover than short-term rentals. This model reduces the time and expense associated with frequent marketing, guest communication, and cleaning.

It also provides stability in markets where short-term rental regulations are restrictive. However, it offers less flexibility for owners to use the property themselves and may yield a lower overall annual income compared to a highly successful vacation rental.

Examples

  • A family relocates for a new job and signs a 12-month lease for an unfurnished single-family house.
  • A property investor purchases a condominium and rents it to a young professional on a two-year lease agreement.
  • The owner of a duplex lives in one unit and rents out the other unit to a tenant on a year-to-year basis.
  • A university student and their roommates sign a one-year lease for an apartment near campus.

Frequently asked questions

What is the standard duration for a long-term rental lease?+
The most common lease term for a long-term rental is one year. However, terms can range from six months to multiple years, and often include options for renewal.
How do long-term rentals differ from mid-term rentals?+
Long-term rentals typically have leases of six months or more and fall under traditional landlord-tenant laws. Mid-term rentals (MTRs) have stays of one to six months and often cater to specific niches like corporate travelers or digital nomads, sometimes blending the furnished nature of STRs with the longer duration of LTRs.
Are long-term rentals typically furnished or unfurnished?+
The majority of traditional long-term rentals are unfurnished, as tenants are expected to provide their own furniture for their primary residence. Furnished long-term rentals exist but are a smaller segment of the market, often serving corporate or relocation needs.
Can a vacation rental property be converted into a long-term rental?+
Yes, property owners can switch their strategy from short-term to long-term rental. This may be done to achieve more stable income, reduce management workload, or comply with new local regulations that restrict short-term stays.
Keep reading

Related terms

Industry

Mid-Term Rental

A mid-term rental (MTR) is a furnished property rented for a period longer than a typical vacation but shorter than a traditional annual lease, usually between…

Read
Industry

Furnished Rental

A furnished rental is a property leased with all the necessary furniture and amenities included, allowing tenants to move in with minimal personal belongings…

Read
Policies & Legal

Security Deposit

A refundable sum collected from a guest before check-in to cover potential damages, excessive cleaning, or rule violations during their stay.

Read
Industry

Short-Term Rental (STR)

A furnished living space, such as an apartment or house, rented for a brief period, typically from a few days to under a month.

Read
Stay in the loop

Join the Lodgify newsletter.

Once a month, get free templates, expert tips for hosts, industry news, webinar invitations, and more — straight to your inbox.

One email a month. Unsubscribe anytime.