Why Long-Term Tenants Are Killing Your Real Estate Profits (And What to Do Instead)

If you're a real estate investor still relying on long-term tenants, it might be time to rethink your entire strategy.

The old-school rental model—signing 12-month leases and collecting stable monthly income—used to be the golden standard. But in today’s high-interest, high-maintenance market, that “security” is often eating away at your actual returns.

Let’s break down why long-term tenants might be dragging your portfolio down, and what smarter landlords are doing instead.

1. Your Property Is Locked at Yesterday’s Rates

With long-term tenants, you can’t pivot quickly when the market shifts.

Interest rates go up. Expenses rise. The cost of everything—from insurance to repairs to taxes—increases year after year.

But your rent? Stuck.

Meanwhile, landlords using mid-term or short-term rental strategies can adjust pricing dynamically—daily, weekly, or monthly—to keep up with inflation and demand.

2. You Lose All Flexibility

Got a tenant who’s late on rent every month? You can’t just ask them to leave.

Need to sell the property or refinance? Good luck with an occupied unit.

Want to move back in, do renovations, or change your strategy? You’re handcuffed.

Shorter-term guests give you freedom. You stay in control of your property.

3. You Can’t Maximize Revenue

A fully furnished mid-term or Airbnb rental doesn’t just make more money—it also attracts better-paying, lower-risk guests like:

✅ Travel nurses
✅ Construction crews
✅ Insurance displacements
✅ Corporate relocations
✅ Snowbirds

These groups pay 2–3x traditional rent. And with professional management, they’re easier to handle than problem tenants who’ve “settled in” for years.

4. Evictions Are Expensive and Traumatizing

In Ontario and many Canadian provinces, getting rid of a non-paying tenant can take 6–12 months.

All while you’re:

❌ Losing income
❌ Still paying the mortgage
❌ Stressed, frustrated, and exhausted

You didn’t buy rental properties to become a hostage in your own investment.

5. A New Strategy Exists: Mid-Term & Hybrid Rentals

At BookedHosts, we manage over 75 properties using a mid-term or short-term model.

We fill your unit with traveling professionals, families, and vetted guests looking for 1–6 month stays. No 12-month leases. No rent control headaches. No squatter nightmares.

And we take care of everything—from pricing to cleaning to guest support.

Want to Break Free from the Long-Term Trap?

Let us show you how to turn your long-term rental into a high-performing, fully managed asset with flexible stays and premium income.

📩 Contact us at info@bookedhosts.com or fill out the form on our website to get started.