Do management fees lower my DSCR?

No. DSCR uses gross revenue net of platform fees only against PITIA; management fees do not enter the calculation.

Does the lender finance my furniture package?

No. Furnishing is a cash cost outside the loan and separate from the required PITIA reserves.

Can I use a long-term insurance quote to improve my ratio?

No. The file should be priced on the real short-term rental premium, and it will be corrected to that figure regardless.

Should cleaning fees be added to my revenue figure?

Cleaning fees passed through to guests are generally excluded from both revenue and expense in the DSCR calculation, since they are a wash.

Does a strong DSCR guarantee the property is profitable?

No. A comfortable DSCR reflects the lending threshold only; real profitability depends on operating costs the ratio does not count.

LESSON 5 OF 65 MIN READ

Do furnishings, management fees and cleaning costs affect my DSCR ratio?

The DSCR ratio on a short-term rental is still built from only two lines — qualifying monthly revenue over monthly PITIA — so furnishings, management fees, cleaning costs, higher utilities and supplies never enter the calculation on either side. That is a real advantage at approval, because a well-run but expensive-to-operate property is not penalised in the ratio the way it would be under a commercial net-operating-income underwrite. It is also the single biggest trap for new operators, because a property that clears the DSCR test comfortably can still lose money once its actual running costs are counted. Insurance is the one operating cost that does enter the calculation, and it belongs at the property's real short-term rental premium, not a long-term landlord estimate.

THE NUMBERS

Minimum DSCR	0.75 (0.75–0.99 prices at +62.5 bps, 70% LTV cap)
Maximum LTV	80% purchase or rate-and-term · 75% cash-out
FICO floor	660 (below that the desk does not lend)
Loan size	$100K – $3M single · $10M portfolio
Reserves	6 months PITIA · 12 months on a portfolio
Prepay options	5-4-3-2-1 par · 3-2-1 +25 bps · 1-yr +50 bps · none +87.5 bps
Typical days to close	21–30 days from a signed term sheet
Rate sheet	Silt Rate Desk — Market Composite Sept 2026 · effective 2026-09-01

ILLUSTRATIVE — published program floors, not a quote or a commitment to lend. Subject to underwriting, appraisal and final credit approval.

What does the underwriter actually count?

Principal and interest at the qualifying rate, property taxes, insurance at the STR policy's real premium, and HOA or association dues where applicable — the same five-line PITIA used on every DSCR file, long-term or short-term. Management fees paid to a co-host or property manager, cleaning fees, linen and supply costs, higher utility bills from guest turnover, and furnishing costs are absent from both sides of the fraction. The DSCR test is a lending threshold, not a full profit-and-loss statement.

Why does furnishing cost matter even though it is excluded?

A short-term rental typically needs a full furniture package, kitchenware, linens, a stocked amenity set and often smart-lock or noise-monitoring hardware before it can list — commonly a five-figure outlay on a standard single-family home. None of that spend appears in the DSCR calculation, and none of it is financed by the DSCR loan itself; it sits alongside your down payment and closing costs as cash you need on day one, separate from the six months of PITIA reserves the file also requires.

How should management and cleaning costs be modelled outside the file?

Full-service short-term rental management commonly runs in a wide range as a share of gross booking revenue, and cleaning fees are typically charged to the guest but still require you to pay the cleaner promptly regardless of guest payment timing. Because none of this reduces your qualifying DSCR, it is entirely on you to build a realistic operating budget alongside the loan application — the lender's approval is not a signal that the property will cash flow after real operating costs.

Does a property manager's involvement change how income is documented?

A manager's consolidated statement, reconciling gross bookings, platform fees, cleaning pass-throughs and the management fee itself, is generally accepted evidence of the property's twelve-month revenue, provided the gross and net figures are clearly separated. What underwriting wants from that statement is the same net-of-platform-fee revenue figure it would pull directly from Airbnb or Vrbo — the management fee line is informative for your own budgeting but is not deducted again from the qualifying figure.

What about capital items like furniture replacement and appliance wear?

Higher guest turnover accelerates wear on furniture, appliances and finishes compared with a long-term tenancy, and a realistic model sets aside a capital-expenditure reserve for periodic refreshes and replacements. That reserve is entirely a matter for your own planning; it does not appear in the DSCR calculation and is separate from the lender's required PITIA reserves, which exist to cover the mortgage payment, not the furniture.

Where does insurance sit in all of this?

Insurance is the exception — it is a PITIA line item and must be priced at the property's actual short-term rental exposure, not a long-term landlord policy, because a short-term policy typically costs meaningfully more to reflect higher guest turnover and liability exposure. Using a long-term quote to make the DSCR look stronger at application will not match the real binder at closing, and the file gets re-run on the correct number regardless.

What the DSCR sees vs what the operator pays

Monthly qualifying revenue (net of platform fees)	$6,800
Management fee, cleaning, supplies, utilities	Not counted — real cost borne by operator
Furnishing outlay at acquisition	Not counted — one-time cash cost, not financed
Taxes, insurance (STR policy), HOA	$1,290 / mo — counted
Illustrative principal + interest	$3,180 / mo — counted
PITIA used in DSCR	$4,470 / mo
DSCR — $6,800 ÷ $4,470	1.52 — approvable
Operator's own model — after management, cleaning, utilities	Net cash flow considerably thinner than the ratio suggests

The gap between the DSCR figure and the operator's real cash flow is normal and expected — it is not an underwriting error. Illustrative only.

WHAT WE NEED FROM YOU

Twelve months of platform or manager statements. Showing gross revenue and platform fees separately.
Short-term rental insurance quote. Priced at real STR exposure, not a long-term landlord policy.
Taxes and HOA dues. Current bills feeding the PITIA side of the ratio.
Property management agreement (if applicable). Not required for DSCR but useful for your own budgeting.
Entity documents. Articles, operating agreement and EIN letter.

FREQUENT QUESTIONS

Do management fees lower my DSCR?: No. DSCR uses gross revenue net of platform fees only against PITIA; management fees do not enter the calculation.
Does the lender finance my furniture package?: No. Furnishing is a cash cost outside the loan and separate from the required PITIA reserves.
Can I use a long-term insurance quote to improve my ratio?: No. The file should be priced on the real short-term rental premium, and it will be corrected to that figure regardless.
Should cleaning fees be added to my revenue figure?: Cleaning fees passed through to guests are generally excluded from both revenue and expense in the DSCR calculation, since they are a wash.
Does a strong DSCR guarantee the property is profitable?: No. A comfortable DSCR reflects the lending threshold only; real profitability depends on operating costs the ratio does not count.

Apply

Airbnb income and DSCR Taxes and insurance Lease vs market rent All answers