Short-term rentals

Everything a short-term rental file needs: how STR income is used, the twelve-month rule and seasonality haircuts, projections when there is no history, ordinances and HOA bans, the costs underwriters do and do not count, and converting a long-term rental to STR mid-loan.

6 LESSONS · 30 MIN · 0/6 DONE

1. 6.1

   1. Airbnb income

   How short-term rental revenue is counted on a DSCR loan: host statements, market data, seasonality and the pricing add-on.

   5 MIN · REFERENCE PAGE

2. 6.2

   2. The 12-month rule and seasonality

   Full-year gross bookings, net of platform fees, divided by twelve — why a peak season never gets annualised.

   5 MIN

3. 6.3

   3. Projections without history

   Market data and comparable-set reports stand in for host statements when a property has no track record — practice on which sources are accepted varies by lender.

   5 MIN

4. 6.4

   4. Ordinances, permits and HOA bans

   City ordinances, licensing requirements and HOA minimum-stay bans are the most common reasons an otherwise strong STR file falls apart.

   5 MIN

5. 6.5

   5. Furnishings and management

   None of the running costs of operating a short-term rental enter the DSCR calculation — but every one of them belongs in your own underwriting.

   5 MIN

6. 6.6

   6. Converting to STR mid-loan

   Changing use mid-loan touches your insurance, your note's occupancy language and your local rules — tell the lender before you list the first booking.

   5 MIN