STR vs Medium-Term Rentals in Italy: Challenges and Opportunities in 2026
STR vs MTR in Italy 2026: ROI, regulation, and cost analysis to optimize your portfolio as a rental manager.
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
- Analyze real net margin per unit, including all hidden operating costs.
- Test MTR on 3-5 underperforming units.
- Verify local regulatory compliance before migrating units.
- Optimize your tech stack to manage hybrid calendars.
- Diversify distribution channels (Spotahome, HousingAnywhere, Blueground for MTR).
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About the author
Gianpaolo Vairo
Co-Founder · Scale Rentals
Instead of just following the short-term rental market, I help architect its future. Recognized among the Top 20 Influential People in VR Tech, I have spent the past 15 years empowering tourism brands to scale globally while retaining their local authenticity. This drive led me to produce SCALE, where I built Europe’s most authoritative platform for STR professionals. Today, my primary focus is driving the next wave of innovation by integrating Artificial Intelligence into the STR space. I view AI as the essential catalyst for streamlining complex operations and personalizing the guest experience at scale. Ultimately, I partner with companies to optimize sales and launch standout products, ensuring their rapid growth is always grounded in long-term sustainability.
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