This version subtracts the management fee and operating costs, which is how many investors judge a short-term rental. Lenders vary: some use gross income from a 12-month booking history or a market rent report. The table works backwards from the net income to the most the loan payment can be at each ratio.
Keep in mind
Seasonal markets can swing widely month to month; a full year of history is the best guide.
Condotels often take a larger management share through the hotel’s rental program.
Questions
How do lenders count short-term rental income?
Usually from 12 months of booking history or a third-party market report for the property, sometimes reduced for vacancy. Each lender sets its own method. See also: Condotel & short-term rental loans.
Can I get a DSCR loan on a condotel?
Yes, from specialist lenders. They look at the building’s rental program, the management agreement and the unit’s income history. See also: Condotel & short-term rental loans.
This short-term rental DSCR calculator gives you a good estimate. Jack can run your actual scenario against current lender guidelines and show you the options, free.
