STRs are “riskier” than LTRs

[Alex Silang]

At the loan company I plan on using, STRs have a higher interest rate because they are considered riskier.

Just curious, with your STR properties is this the case?

After all, LTR typically have a lower MRR and will need to deal with evictions probably more often.

[Collin Hays]

I would think a lender views the STR as a higher risk simply because a long-term tenant has a defined lease in place, that is usually 6 months or more in duration.