Short-Term & Vacation Rental Discussions

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Anna Millar
  • Real Estate Agent
  • Charlotte, NC
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Requirements for Short Term Rental Seasoning/ Proof of Income

Anna Millar
  • Real Estate Agent
  • Charlotte, NC
Posted Jul 9 2022, 11:18

My fiancé and I have been traveling for the last 6 months and put our house on airbnb. 

We are nearing the end of our travels and want to refinance into a commercial loan.

If we stay at the property for a few weeks and then put it back on airbnb, does anyone know if that will mess up the “seasoning”/ proof of rental income we have so far?

Thank you so much!

Charlotte, North Carolina

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Luke Carl
  • Rental Property Investor
  • Tennessee Florida
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Luke Carl
  • Rental Property Investor
  • Tennessee Florida
Replied Jul 9 2022, 11:42

When you say commercial assume you mean local bank? If so depends on the bank and will likely depend on you cash position and his baby tax returns you have showing income. Could also go conventional with 2 years tax return. Commercial and conventional not going to care if you sleep in it to my knowledge. The lack of a lease is what you’ll have to talk them into 

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John Underwood#4 All Forums Contributor
  • Investor
  • Greer, SC
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John Underwood#4 All Forums Contributor
  • Investor
  • Greer, SC
Replied Jul 9 2022, 11:47

Commercial loan? Is your house zoned commercial?

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Jacob Murphy
  • Rental Property Investor
  • Franklin, IN
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Jacob Murphy
  • Rental Property Investor
  • Franklin, IN
Replied Jul 9 2022, 12:06

The answer is no. Commercial lenders for Airbnbs (from the few lenders I've spoken to) can do either existing revenue statements or some percentage of AirDNA (if no existing revenues are present). 

It's relatively odd that most lenders for LTR need that seasoning before they believe you (never been involved in LTR but that's what I hear) but for STR they'll take that data.

End of the day though you can just pick up the phone and start forming that relationship with the lender you want, ask those questions, etc.

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Robin Simon#2 Private Lending & Conventional Mortgage Advice Contributor
  • Lender
  • Austin, TX
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Robin Simon#2 Private Lending & Conventional Mortgage Advice Contributor
  • Lender
  • Austin, TX
Replied Jul 9 2022, 15:06
Quote from @Anna Millar:

My fiancé and I have been traveling for the last 6 months and put our house on airbnb. 

We are nearing the end of our travels and want to refinance into a commercial loan.

If we stay at the property for a few weeks and then put it back on airbnb, does anyone know if that will mess up the “seasoning”/ proof of rental income we have so far?

Thank you so much!


Hi Anna - for commercial (DSCR) loans, airbnb loans are still pretty new so its going to vary from lender to lender, mostly depending how they qualify airbnb income. Almost uniformly, a lender is not going to take 6 months an annualize it for an STR, and will only do an actual 12-month history for qualification (this is primarily due to the seasonal nature of most markets, so it would be unrealistic to project if it was the "6 month on season" or "off season". The good news is that there are creative private lenders that will qualify based on AirDNA projections and hybrid "common sense" underwriting that can take into account the 6 months history with some mix of market rent, projection, etc.

As for living in the property, it is very important for the loan to be non-owner occupied for STRs (this means you sign docs that say moving forward you will not occupy the property more than 14 days per year).  However, living in the property for a few weeks shouldn't be an issue, but you must have strong documentation that you have a new primary residence or lease signed up by loan close.