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1007 and Short Term Rental

Sierra Wolfpack

Freshman Member
Joined
Jan 8, 2014
Professional Status
Appraiser Trainee
State
California
Hey everyone. I just got another request to complete a 1007 for a "Short Term Rental". For the past 10 years I have always used, and understood, that the 1007 was for long term rentals only.Has something changed in this for, or in lending that has made it possible for 1007 to be used for short term rentals? Thanks in advance.
 
The only thing that has changed is a couple of AMC chief appraisers who swing wide loops say it’s okay. Of course they’re not signing the reports, they just expect their vendor partners to do it.
 
Hey everyone. I just got another request to complete a 1007 for a "Short Term Rental". For the past 10 years I have always used, and understood, that the 1007 was for long term rentals only.Has something changed in this for, or in lending that has made it possible for 1007 to be used for short term rentals? Thanks in advance.
Here is the latest from Fannie. STRs are addressed at the bottom of the page

 
Has something changed
No. Tell them to go take a hike. Yes, I suppose you could...but price it as a commercial appraisal. A VRBO or Airbnb includes furnishing, sometimes even food, and all sorts of non-realty amenities might be included. I did a VRBO which included a shuffleboard table, golf cart, and furnishings, plus a fishing dock and boat dock on the water with a cruiser and 2 jet skis. Monetize that. So, you have F & F, Blue sky, and should treat it like a motel or hotel appraisal. I would charge north of $5,000 for a hotel "on-going enterprise" appraisal personally.
 
Has something changed in this for, or in lending that has made it possible for 1007 to be used for short term rentals? Thanks in advance.
No. Read the Fannie Mae guidelines Dublin posted to construct a retort with verbiage from the guidelines to the scumbag AMC/lender.
 
When I was looking for a tenant, I would avoid potential tenants who wanted to rent short period like 3 months.
Even with higher rent, I don't want to go through the ordeal in finding another tenant later.
After cleaning the premise, I don't want it to be in worse shape later.
 
It's not the form that is the issues, it is the assignment condition and what the client wants - a 1007 is usually part of a fannie/UAD form and a fannie guideline is for long term monthly rentals -
 
It's difficult to get rents on short term rentals. Alternative is hotel rooms nearby.
I wouldn't take such assignments. Pass.
 
Dublin Ohio. You rock. Thank you for the link and the direction towards my answer.
Glad to be of help. Have used it myself. As counter intuitive as it may seem. Sometimes Fannie guidelines and/or regs can be your friend
 
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