How the income gets measured
Programs that accept short-term rental income generally use one of three sources: trailing booking history from the platform or your management software, a third-party short-term rental income projection for the address, or an appraiser’s market analysis. Some apply a discount to gross revenue to account for platform fees, cleaning and management; others look at gross. That variation is why our STR calculator lets you model operating costs as a percentage you choose.
Seasonality is the whole game
An annual average hides cash-flow gaps. Splitting the year into peak, shoulder and off-season lets you see how dependent the deal is on a few strong months. If your shoulder and off-season numbers are thin, plan reserves accordingly — a lender reviewing the deal will be thinking the same thing.
Local rules come first
Before you model anything, confirm that the property can legally operate as a short-term rental and what permits or registrations apply. Zoning, HOA rules and municipal ordinances can change. Underwriters may ask for evidence of compliance, and a deal that only works as a nightly rental is exposed if rules tighten.
What gets reviewed
- Booking history or third-party income projection
- Seasonality and operating cost assumptions
- Local short-term rental permitting and HOA rules
- Furnishing, condition and appraisal
- Credit, reserves and experience operating rentals
We are a mortgage broker, not a lender. We arrange and shop this financing from wholesale lenders, and program availability, leverage and terms vary by lender and by scenario. Nothing on this page is a rate quote or a commitment to lend.