Q: Should the rent schedule on the 1025 reflect short-term or long-term rents?
A: The 1025 rent schedule must reflect long-term market rents, as those are used in the income approach and are required to support market value. The STR form is a separate add-on used solely to analyze potential short-term rental income for borrower qualification purposes.

Q: How do I handle STR reporting for a 2–4 unit property with different unit types?
A: If the property has units that differ in layout, size, number of bedrooms, number of bathrooms, or amenities, a separate STR analysis form may be required to estimate the short-term rent for each distinct unit type. This ensures rental estimates reflect each unit’s specific market potential. If you have any questions about the number of STR forms required, please contact NAN at SAA@nan-amc.com or 888-978-3471.

Q: Can I complete just one STR analysis for all units in a 2–4 unit property if the units are similar in size, features, and amenities?
A: Yes, but only if the units are genuinely similar in layout, size, amenities, and utility. Per lender approval, one STR analysis may be sufficient for “twin” units. If there’s any variation, it’s best to contact NAN at SAA@nan-amc.com or 888-978-3471 to confirm whether multiple analyses are required.

Q: Do I use the STR income in the 1025’s income approach to value?
A: No. The STR income is not used in the value conclusion or income approach of the 1025. It is supplemental and used for qualification purposes only. The income approach on the 1025 must reflect traditional long-term rental data.

Q: What if I’m unsure how many STR forms are needed for a multi-unit property?
A: When in doubt, contact NAN at SAA@nan-amc.com or 888-978-3471. It’s important to confirm before completing the analysis to avoid delays or revision requests.

Q: How should I proceed if there is no market demand for short-term rentals in the subject area?
A: If the subject property is located in an area with no identifiable drivers for short-term rental (STR) demand (e.g., no tourist attractions, corporate hubs, or seasonal draws), stop and contact NAN at SAA@nan-amc.com or 888-978-3471 for instructions before proceeding with the STR analysis.

Q: What are some signs that an STR market may not exist in the subject’s area?
A: Indicators include the absence of active or historic STR listings nearby, lack of demand-driving factors (e.g., no proximity to attractions or events), or restrictive local ordinances that prohibit short-term rentals.

Q: Can I still complete the STR form if there’s no local STR activity to analyze?
A: Not without first contacting NAN at SAA@nan-amc.com or 888-978-3471. If there is insufficient data or no STR market present, completing the form may not be advisable. NAN will help determine the best path forward based on assignment requirements and client feedback.

Q: What if I find only long-term rentals in the area—can I use those to complete the STR form?
A: No. The STR form is specifically designed to analyze short-term rental income. If only long-term rental data is available, it should be reported on a 1007 rent schedule. Stop and notify NAN at SAA@nan-amc.com or 888-978-3471 regarding the absence of short-term rental market support.

Q: Is the STR Analysis Form time-consuming to complete?
A: The form is designed to be efficient. Most fields are automatically calculated once you enter essential data points, such as nightly rates and occupancy percentages. The most time-consuming part is researching the market and gathering accurate short-term rental data for your analysis.

Q: How are the numeric fields on the STR form calculated, and where can I learn more about them?
A: Most numeric fields on the NAN STR Analysis Form are automatically calculated once you enter key data points, such as nightly rates, occupancy percentages, and seasonal date ranges. To understand how these calculations are derived, such as how adjusted nightly rates or gross monthly income are determined, please refer to the STR Instructional Document provided with the assignment. It breaks down each formula with step-by-step examples to help ensure accuracy and consistency in your reporting.

Q: What parts of the form require the most effort to complete?
A: The bulk of your time will be spent researching comparable STR properties and confirming seasonal rates and occupancy. After that, most numeric fields calculate automatically, and you’ll focus on completing the narrative sections that explain and support your conclusions.

Q: Are the calculations on the form done manually or automatically?
A: Most calculations are automatic. The STR form utilizes the data you enter (e.g., nightly rates, occupancy, seasonal ranges) to calculate key metrics, including annualized income, adjusted nightly rate, and estimated gross monthly income. You should review the STR Instructional Document provided with the assignment to understand how the formulas work.

Q: How can I complete the form more efficiently?
A: Begin by thoroughly researching your STR comparables and collecting all key data points upfront. Then, review the instructional guide to understand how the form processes that data. With your data in hand, the form’s built-in calculations will significantly speed up completion. If you have any questions, please contact NAN at SAA@nan-amc.com or 888-978-3471.

Q: My data source doesn’t provide seasonal details—just an annualized nightly rate and occupancy percentage. How should I complete the STR form?
A: If your source only provides annualized figures, enter that information in the Peak Season section of the form. In the Month Range for Peak Season, select January through December to indicate the data covers the entire year. Enter zero for the Off-Peak and Shoulder seasons. Be sure to include commentary explaining that your data source only reports annualized rates and occupancy, and that the Peak Season entry reflects this annualized estimate.

Q: Will I need to estimate or guess the seasonal breakdowns if they aren’t provided?
A: No. Do not guess or create unsupported seasonal breakdowns. Report the data as provided by your source, using the Peak Season section to reflect annualized income, and clearly explain the limitation in your commentary.

Q: What sources can I use to gather short-term rental data for the STR Analysis Form?
A: Common sources include booking platforms like Airbnb, VRBO, and Booking.com, where you can review listing rates, calendars, and guest reviews. Market analytics platforms such as AirDNA provide performance-based insights, including occupancy rates and seasonal trends. Local real estate agents, local MLS, property managers, or vacation rental operators are also valuable resources.

Q: How can I ensure the STR data I’m using is accurate and reliable?
A: Reliable sources typically provide data based on actual bookings and occupancy, rather than advertised rates. Platforms like AirDNA provide aggregated data pulled from real STR performance. When using information from local agents or owners, verify that it accurately reflects the actual booking history, rather than projections or expectations. Always identify your data sources in the form and include commentary supporting your conclusions.

Q: I’m unable to find STR data for the subject property’s location. How should I proceed?
A: If data is unavailable and there are no clear demand drivers (e.g., attractions, seasonal traffic, business hubs), stop and contact NAN at SAA@nan-amc.com or 888-978-3471 before proceeding.

Q: Is this form considered an appraisal?
A: No. The NAN STR Analysis Form is a valuation service. It is not a value estimate of the subject, nor are the results used to estimate the market value of real property. However, the form must still comply with the Ethics and Competency Rules, and appraisers must certify that they performed the assignment impartially, objectively, and independently.

Q: Should my STR rent estimates include furnishings, cleaning services, or management fees?
A: Yes. Short-term rentals typically include furnishings, utilities, and services such as cleaning and property management. Your analysis should reflect market expectations for a fully furnished, operational short-term rental (STR) unit. Consider these factors when selecting comparables and making adjustments.

Q: Should I save or include supporting documentation for the STR comps used in my analysis?
A: Yes. Capturing supporting documentation, such as screenshots from Airbnb, VRBO, or STR analytics platforms, including property descriptions, rate information, and occupancy estimates, is a good practice. These materials support your conclusions and should be included in your report or work file.

Q: Do I need to manually check the math if the form auto-calculates fields?
A: Yes. While the form includes automatic calculations, it’s your responsibility to verify accuracy. Review the STR Instructional Document to understand how the math is derived and double-check your entries to ensure the calculations are consistent with your data and conclusions.

Q: Is it acceptable to use a new short-term rental (STR) property with little to no rental history as a short-term rental (STR) comp?
A: Use caution. Listings without a booking history may not reflect actual market performance. If used, clearly disclose that the comp has no rental history and explain how you supported your assumptions. It’s best to prioritize comps with verified booking data whenever possible.