Steve Mannenbach · · 6 min read
Short-term rental (STR) properties require specialized underwriting approaches. Lenders must verify income from platforms like Airbnb and VRBO while accounting for seasonality and vacancy factors.
Documentation Requirements
Most lenders require 12 months of platform statements, bank deposits, and property management agreements. Some may accept 6-month histories with market rent analysis backup.
Income Calculation Methods
Conservative lenders apply a 20% expense factor to gross STR income, while others may use actual expenses if higher. This accounts for cleaning, supplies, and vacancy.
Seasonal Adjustments
Properties in seasonal markets require careful analysis of peak and off-season performance to ensure sustainable cash flow coverage.