Underwriting a Short-Term Rental the Right Way

Most STR pro formas I review overstate revenue by 15–25% and understate operating costs by a similar margin. The result is a deal that looks acceptable on paper and disappoints in year one.

Start with comparable nightly rates pulled from at least three platforms, then haircut occupancy to a defensible mid-week-weighted blend. Layer in cleaning turnover, dynamic pricing software, channel fees, and a realistic capex reserve.

Finally, stress-test against the regulatory side. Nightly rental ordinances are evolving across Summit, Wasatch, and Juab counties, and your underwriting should survive a future restriction to 30-day minimums.