STR (short-term rental)

STRs can earn more gross income than a long-term rental, but the income swings by season and the costs are higher. Cleaning, supplies, utilities, platform fees, furnishings and management all come out of the nightly revenue.

How the numbers work

Revenue = average nightly rate x nights booked. Run The Deal models revenue month by month with a seasonality profile, then subtracts platform and card fees, cleaning, utilities, supplies, management and reserves. Its default STR management fee is 25% of revenue, which you can change.

STR income and DSCR loans

Many DSCR lenders do not count STR income at face value. Run The Deal uses 75% of gross STR revenue as qualifying rent by default, and models a lower 70% LTV cap when there is no 12-month booking history. Real rules vary by lender.

What to watch

• Local rules. Zoning, permits, HOA bans and occupancy taxes can stop an STR. Check before you buy.
• Seasonality. A strong winter does not mean a strong spring. Plan for slow months.
• Concentration. Run The Deal flags when a few months carry most of the year's revenue.

For a mountain market example, see the Snowshoe, WV short-term rental calculator. Compare STR to a long-term lease with the rental property calculator.