Short-term rentals are breaking the appraisal playbook. Lenders can’t afford to ignore it

Short-term rentals (STRs) have evolved from a niche investment strategy into a durable, institutionalized asset class. What hasn’t evolved at the same pace is how many lenders and valuation teams approach STR income risk. As investors become more sophisticated and debt service coverage ratio (DSCR) lending continues to grow, the appraisal has moved from a back-office requirement to a…