Short Term Rental

The term “short term rental” applies to a property listed for nightly rental on sites such as Airbnb and VRBO.

In this arrangement, the owner is responsible for utilities, furnishings, maintenance, repairs, cleaning, marketing and management fees imposed by the respective sites. The rental income varies each month based on the number of nights rented and nightly rental rate. Properties should generally exist in desirable areas, as they rely on tourism for tenancy.

HOA or Condo bylaws must be considered when contemplating the purchase of a property for short term rental usage. Some projects prohibit this structure.

While requiring more oversight from the owner, this structure can be very lucrative for the right property, especially when located in a vacation destination.

This type of investment property structure is generally new in the industry and requires expertise from your mortgage professional to navigate. At Rentopia Mortgage, we’ve been working with short term rentals since they came into our industry and fully understand how they impact the mortgage process.