STR vs Medium-Term Rentals in Italy: Challenges and Opportunities in 2026

Italian portfolio managers with 20-100 units face an inevitable strategic fork: continue going all-in on short-term rentals (STR, 1-30 days) or diversify into medium-term rentals (MTR, 30-365 days)? The answer, as usual in this business, isn’t about the product — it’s about the margin.

Financial Comparison: ROI and Net Margins

STR retains a clear ADR advantage in high-demand tourist cities. However, the real battlefield today is net margins.

Indicator (2025/2026 data)	STR	MTR
Average ADR Milan	€142	€85-95
Average ADR Rome	€128	€75-85
Net margin advantage	Baseline	+15% / +18%

The explanation lies in drastically reduced operating costs: minimal turnovers, cleaning every 2-4 weeks instead of daily, less wear on furniture and property.

The Regulatory Advantage of Medium-Term Rentals

MTR escapes the “tourist rental” classification. It falls under transitory use contract regulations with lighter bureaucratic requirements and without the growing municipal restrictions plaguing STR in cities like Florence, Venice, or Rome.

Who Demands MTR in 2026?

• Digital nomads and remote workers: 35% of total MTR demand in Italy
• Expats and corporate relocations: 28%
• University students: 22%
• Business travelers: 15%

Hybrid Strategy: Best of Both Worlds

• 70% STR + 30% MTR: Optimal for tourist cities with high seasonality.
• 50/50: Perfect balance for urban hubs with strong corporate demand.
• 30% STR + 70% MTR: Defensive strategy to reduce regulatory exposure.

Operational Roadmap

1. Analyze real net margin per unit, including all hidden operating costs.
2. Test MTR on 3-5 underperforming units.
3. Verify local regulatory compliance before migrating units.
4. Optimize your tech stack to manage hybrid calendars.
5. Diversify distribution channels (Spotahome, HousingAnywhere, Blueground for MTR).