Who this guide is for
This guide is written for the Canadian who is buying or refinancing a Florida investment property where the rental strategy is short-term rental rather than annual lease, and who needs to understand both how the lender will measure the income and how the municipality will measure the legality. Specifically, it addresses three profiles. The first is the Canadian buying a property in a known vacation market (Orlando theme-park corridor, Anna Maria Island, the Florida Keys, the Panhandle beach towns) where short-term rental is the standard exit. The second is the Canadian buying in a mixed-use urban market (Miami, Miami Beach, Tampa, Fort Lauderdale, St. Petersburg) where the legality of short-term rental depends on the specific address and zoning district. The third is the Canadian who already owns a Florida property as a long-term rental and is considering a strategy switch to short-term, with a DSCR refinance to capture the higher cash flow.
This guide is not the right place to start if you have not yet read the foundational DSCR purchase guide in chapter 01.4. The STR DSCR is a variation of the same product, with income-source, haircut, and rate-premium differences that only make sense once the standard DSCR purchase mechanics are clear. It is also not written for Canadians financing a personal vacation home where the income is incidental; that file belongs in the second-home or primary-residence channel, not the DSCR investment channel.
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Section 1. Why STR underwriting differs from LTR underwriting on a DSCR loan
A long-term-rental DSCR loan is a relatively simple product. The income figure comes from one of two sources: a signed 12-month lease at the time of underwriting, or a Form 1007 market-rent opinion produced by the appraiser when the property is vacant. The lender uses the lower of the two. Either way, the income figure is monthly, predictable, and comparable to the monthly PITIA payment.
A short-term rental does not produce monthly income. It produces nightly revenue that varies by season, day of week, local events, weather patterns, and the operator's pricing skill. The Form 1007 is not designed for nightly rates; Fannie Mae has explicitly stated that the appraiser cannot multiply a nightly Airbnb rate by 30 to fill in the Form 1007 monthly market rent. [9] So the DSCR lender that wants to lend on a property the borrower will operate as an STR has to find a different income source, or refuse to recognize the STR income premium at all.
The DSCR lender market splits into two broad camps on this question. The first camp is the LTR-only DSCR lender, which underwrites every property to the long-term-rental market rent regardless of how the borrower plans to operate it. A property that produces 6,000 USD per month as an Airbnb in Orlando but only 2,400 USD per month as a long-term rental qualifies on the 2,400 USD figure. The DSCR ratio collapses, the loan amount drops, or the deal does not close. For Canadians who specifically picked the STR strategy because the long-term cash flow does not work, the LTR-only lender is the wrong partner.
The second camp is the STR-aware DSCR lender, which accepts one of three STR income sources for underwriting. The first is the AirDNA Rentalizer report, which produces an address-level annual revenue projection based on comparable nearby short-term-rented properties. The second is the property's own platform history (12 months of Airbnb or Vrbo statements) when the property is already operating. The third is a short-term-rental income appraisal addendum, where the appraiser specifically analyzes STR comparables and produces a projected annual revenue. Different lenders accept different sources; the Canadian borrower has to ask the question on the term-sheet call. [1][2][3]
For the Canadian foreign-national borrower, the STR rate premium stacks on top of the foreign-national premium that is already part of the DSCR rate. A property that an STR-aware lender prices at 7.0 percent for a US-citizen investor with a strong file may price at 7.5 to 7.75 percent for a Canadian foreign national with the same property and similar credit. The STR strategy therefore needs to deliver enough additional cash flow to absorb that combined premium and still beat the LTR alternative.
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Section 2. What an AirDNA Rentalizer report contains and how lenders read it
The AirDNA Rentalizer is the most widely used third-party STR income tool in DSCR underwriting. The report runs at the address level (or the closest comparable cluster when the address itself has no operating history) and returns a structured set of metrics. Understanding what each metric means is the difference between a Canadian borrower who lands a strong term sheet and one who is surprised at clear-to-close.
The headline number on a Rentalizer report is Projected Annual Revenue. This is the dollar figure the lender will use as the starting point for the qualifying income calculation. It represents AirDNA's estimate of what the subject property could generate over a 12-month period if listed and operated at market standard.
Three drivers underlie the headline number. The first is Average Daily Rate (ADR): the projected average nightly rate, typically benchmarked against five to fifteen comparable properties within a defined market radius and bedroom-count cluster. The second is Occupancy Rate: the projected percentage of available nights that will be booked, again benchmarked against comparables. The third is the property's specific bedroom count, bathroom count, and amenity profile, which the Rentalizer adjusts up or down from the comparable median.
The report also returns a Market Score, a 1-to-100 index that reflects the strength and reliability of the underlying market data. A Market Score below 60 means AirDNA has thin or noisy comparable data and the projection should be treated as low-confidence. Some lenders refuse to underwrite STR DSCR loans in markets where the Rentalizer Market Score falls below 60. [6]
Finally, the report includes Comparable Property Detail: the specific Airbnb and Vrbo listings used to build the projection, with their bedroom count, occupancy, ADR, and revenue. Sophisticated underwriters review the comparables before accepting the projection. A projection built off five 4-bedroom luxury beachfront comparables is not credible for a 2-bedroom interior condo three blocks from the beach.
The practical implication for the Canadian borrower is that not all DSCR lenders use the same haircut, and the lender selection drives the loan amount. A Canadian who shops three lenders on the same AirDNA report can see the qualifying income differ by 8 to 15 percent across the three quotes purely from the haircut differential, before any rate or LTV difference enters the picture.
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Section 3. The municipal layer: where Florida lets you Airbnb and where it does not
Before any DSCR underwriting question matters, the Canadian buyer has to clear the municipal regulatory layer. Florida has a state preemption rule that prevents cities and counties from banning short-term rentals outright, but the preemption is narrow, and what cities and counties are allowed to regulate is enough to make most STR deals fail in restricted zones.
The state-level baseline is straightforward. Florida Statute § 509.032(7)(b) preempts local government bans on vacation rentals enacted after June 1, 2011. Local ordinances enacted before that date are grandfathered. The state requires a DBPR Vacation Rental License for any property rented for less than 30 days more than three times in a calendar year, or advertised as regularly available for transient stays. The state also requires registration with the Florida Department of Revenue for sales tax (6 percent state plus county discretionary surtax) and Tourist Development Tax. [11]
What state preemption does not cover is zoning, occupancy, registration, parking, noise, and operational standards. These belong to local government, and Florida cities have used them aggressively. A Canadian who buys a property in a zoning district that does not permit "transient lodging use" has bought a long-term rental with high-end finishes; the legal STR is not available at that address regardless of how the lender underwrites.
The table below summarizes the regulatory posture in several Florida markets where Canadians actively buy. This is not exhaustive, and rules change. Confirm with the municipality's planning department before signing the FAR/BAR contract.
| Market | STR posture | Key constraints |
|---|---|---|
| Orlando (city) | Permitted citywide with conditions. Home-sharing program. | Owner must live on-site and be present during stay. Only one booking at a time. Maximum 50% of bedrooms rented. [12] |
| Orlando theme-park corridor (Kissimmee, Davenport, ChampionsGate) | Generally permitted in vacation-home subdivisions specifically zoned for STR. | County and HOA layer matters more than city. Many newer subdivisions are STR-zoned by design. |
| Miami (city) | Permitted only in specific Miami 21 transect zones (T4, T5, T6 with conditions). Single-family residential mostly excluded. | Certificate of Use, BTR, DBPR license, Operational Management Plan. Miami-Dade Tourist Tax registration. [13] |
| Miami Beach | Largely prohibited in single-family residential zones and most low-density multifamily zones. Permitted only in specific commercial and high-density zones. | Designated zone verification mandatory before purchase. BTR, Resort Tax account, Resiliency Code 7.5.4.13(d)(E) and 7.5.4.11(a). Fines start at 20,000 USD for first unlicensed-operation violations in some zones. [14][15] |
| Sunny Isles Beach | Permitted with city license and strict operational requirements. | City STR license. Local Business Tax Receipt. Responsible Party reachable on-site within 1 hour. 13% combined occupancy/resort tax. [16] |
| Anna Maria Island | Permitted; long-standing vacation rental market. | DBPR license, Manatee County Tourist Tax. Local minimum-stay ordinances vary by island municipality. |
| Florida Keys (Monroe County) | Mixed by jurisdiction. Strict in Key West (28-day minimum in many residential zones). | Verify with specific municipality (Key West, Marathon, Islamorada, Key Largo). |
| Panhandle beach towns (Destin, Panama City Beach, 30A) | Generally permissive vacation rental markets. | DBPR license, Walton County or Bay County local registration. Some HOAs restrict. |
| Tampa | Permitted; less restrictive than Miami. | DBPR license, City registration, Hillsborough County Tourist Tax. |
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Section 4. STR DSCR parameters for Canadian foreign nationals (April 2026)
The table below summarizes the parameters a Canadian investor can expect on an STR DSCR term sheet in April 2026. These are typical ranges for the STR-aware lender segment; LTR-only lenders will typically refuse to underwrite STR income at all and will instead use the Form 1007 long-term market rent.
| Parameter | Typical range, foreign-national STR DSCR (April 2026) |
|---|---|
| Income source | AirDNA Rentalizer projection, 12 months of platform history, or short-term-rental income appraisal addendum. Lender accepts at least one of the three. |
| Income haircut | 10 to 25 percent applied to AirDNA Projected Annual Revenue, or to historic platform gross. [3][4][6][8] |
| Minimum AirDNA Market Score | 60 at most lenders. Some require 70+. [6] |
| Minimum DSCR ratio | 1.00 standard. Some lenders accept 0.75 with stronger compensating factors. |
| Maximum LTV (purchase, foreign national STR) | 70 to 75 percent typical. Some lenders cap STR at 70% even when LTR allows 75%. |
| Maximum LTV (cash-out, foreign national STR) | 60 to 70 percent typical. |
| Minimum credit score | 660 to 700. |
| Cash reserves | 6 to 12 months of PITIA in US-domiciled liquid account. STR loans often require the higher end. |
| Rate (foreign-national STR purchase, April 2026) | 7.25 to 7.875 percent typical par. Approximately 0.125 to 0.50 percentage points above the equivalent LTR DSCR rate. [4][5][8] |
| Required documentation | DBPR Vacation Rental License (or evidence of eligibility), local STR permit/BTR if required by jurisdiction, signed STR addendum from borrower, HOA/condo-association attestation that STR is permitted. [3] |
| Prepayment penalty | Typically 3 to 5 year step-down. |
| LLC vesting | Permitted and often preferred. |
The "STR addendum" the borrower signs is worth flagging. It is a lender-specific document acknowledging that the property will operate as a short-term rental, that the borrower has confirmed local STR legality, and that the lender's qualifying income figure is based on an STR projection rather than a long-term lease. Signing the STR addendum and then operating the property as a long-term rental does not breach the loan, but operating as STR in a non-permitted zone after the addendum was signed creates loan-default exposure under most lender programs. [3]
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Section 5. The Canadian and US tax frame around STR income
Short-term-rental income carries cross-border tax treatments that differ in important ways from long-term-rental income. The DSCR loan does not change these treatments, but the higher cash flow concentrates the dollar exposure. The table below maps the relevant treatments by jurisdictional level.
| Topic | Federal US | State (Florida) | Federal Canada | Provincial (Quebec reference) |
|---|---|---|---|---|
| US tax classification | STR income may be classified as either rental income (Schedule E) or business income (Schedule C) depending on whether substantial services are provided. The classification affects self-employment tax exposure (Schedule C) versus passive treatment (Schedule E). [17] | No state income tax. | Worldwide income; STR income reportable on Canadian return as rental income or business income depending on level of services and frequency. Foreign tax credit available under Canada-US Income Tax Convention. | Same federal framework. Quebec residents file TP-1. |
| US transient-occupancy taxes | Not applicable | Florida sales tax 6% + county discretionary surtax 0.5 to 1.5%, plus Tourist Development Tax 2% to 6% depending on county. Total combined state-and-local STR occupancy tax typically 11 to 13.5%. Collected from guest at booking. [11] | Not directly applicable, but Canadian-source GST/HST does not apply to a US-located rental. | Same federal framework. |
| Mortgage interest deductibility | Deductible against US rental income on Schedule E (or Schedule C if STR classified as business) if § 871(d) net election is in place and Form 1040-NR is timely filed. [18] | Not applicable | Deductible against Canadian-reported rental or business income under Income Tax Act § 18(1). | Same federal framework |
| Depreciation | 27.5 years residential (Schedule E) or 39 years if STR classified as business under § 469. Personal property (furniture, appliances) typically 5 to 7 years. [17] | Not applicable | Capital cost allowance class 1 (4%) or class 1.1 (6%) on Canadian return if reported. | Same federal framework |
| Reporting | Annual Form 1040-NR with § 871(d) election. Form W-8ECI to platform or property manager. If classified as business, may trigger US trade-or-business filing implications. [18] | Florida Tourist Development Tax registration with county; Florida sales tax registration with Department of Revenue. Monthly remittance typical. [11] | T1135 if specified-foreign-property cost amount exceeds CAD 100,000 at any time. STR property is reportable; vacation property used personally is not. [19] | Same federal framework |
Two STR-specific tax complications deserve attention.
The first is the substantial services test that determines whether US STR income is reported on Schedule E (passive rental) or Schedule C (active business). The IRS treats the income as a business when the operator provides substantial services beyond those customary for residential rentals, including daily cleaning, concierge services, meals, or services typical of a hotel. Schedule C classification triggers self-employment tax (15.3 percent on net earnings), which materially changes the after-tax math. Most Canadian Airbnb hosts who use a third-party property manager and do not personally provide hotel-like services land in Schedule E territory; aggressive STR operators who run the property like a boutique hotel may not. The classification belongs to a cross-border tax specialist. [17]
The second is the automated platform tax collection. Airbnb and Vrbo collect Florida state sales tax and most Florida county Tourist Development Taxes automatically and remit them to the relevant tax authorities. They do not collect every local tax (the Miami Beach Resort Tax of 4 percent often requires separate host registration and remittance). The Canadian host is responsible for confirming which taxes are platform-collected and which are not, and for registering with the relevant authorities for the latter. [16]
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Section 6. Worked example: Anna Maria Island STR, Canadian foreign-national DSCR
This example walks one transaction end to end, with all figures in USD and rates current as of April 2026. It is illustrative, not a quote.
A Quebec resident purchases a 3-bedroom, 2-bathroom beach cottage on Anna Maria Island for 750,000 USD, intending to operate it as a short-term rental on Airbnb and Vrbo. Anna Maria is a long-standing vacation-rental market and the specific zoning permits STR.
AirDNA Rentalizer report
- Projected Annual Revenue: 96,000 USD
- ADR: 425 USD
- Occupancy: 62%
- Market Score: 84 (above the 60 threshold most lenders require)
- Comparable cluster: 12 listings within 0.5 miles, 3-bedroom, beach-adjacent
Loan structure
- Purchase price: 750,000 USD
- Down payment: 30%, 225,000 USD
- Loan amount: 525,000 USD
- Rate: 7.625% (foreign-national STR DSCR par, April 2026)
- Term: 30-year fixed
- Vesting: Florida LLC, single-member
Income haircut and DSCR calculation
- Lender haircut: 20% of AirDNA Projected Annual Revenue
- Qualifying annual income: 96,000 USD × 0.80 = 76,800 USD
- Qualifying monthly income: 76,800 / 12 = 6,400 USD
- Monthly PITIA estimate:
- Principal and interest, 30-year at 7.625%: 3,716 USD
- Property tax (1.1% of price / 12): 688 USD
- Homeowner, wind, and flood insurance (coastal property): 825 USD
- HOA: 0 USD
- Total PITIA: 5,229 USD
- DSCR: 6,400 / 5,229 = 1.22
The 1.22 DSCR exceeds the 1.00 minimum and approaches the 1.25 best-tier threshold. The loan qualifies and prices in the standard tier.
Cash to close (estimate)
- Down payment: 225,000 USD
- Closing costs (lender, title, doc stamps and intangible tax, prorations): approximately 18,000 to 22,000 USD
- Reserves required (12 months PITIA at STR loan): approximately 62,750 USD held in US account
- Required to pre-fund initial furnishing and listing setup (not lender-required, but operationally needed): 30,000 to 50,000 USD
- Total cash to deploy: approximately 335,000 to 360,000 USD
Operating math after closing (Canadian after-tax view)
- Gross annual revenue (per AirDNA): 96,000 USD
- Florida combined STR taxes collected from guest by Airbnb/Vrbo: typically 11 to 12% on gross. Pass-through to tax authorities, not host revenue.
- Net to host before operating expenses: approximately 96,000 USD (taxes are guest-paid)
- Annual operating expenses (cleaning, supplies, utilities, internet, platform fees ~3 to 15%, property management 20 to 30% if used, repairs, replacements): typically 30 to 45% of gross revenue for a managed STR. Estimate 35,000 USD.
- Annual debt service (P&I): approximately 44,600 USD
- Annual property tax, insurance, HOA: approximately 18,150 USD
- Net cash flow before tax: approximately 96,000 - 35,000 - 44,600 - 18,150 = -1,750 USD (slightly negative on cash basis)
- Add back depreciation for Form 1040-NR Schedule E: typically 18,000 to 22,000 USD non-cash deduction. Net after-depreciation taxable result is meaningfully negative, reducing US tax exposure to zero in early years.
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Section 7. Common mistakes Canadians make on STR DSCR files
Each item below is a mistake we have seen repeatedly on Canadian STR DSCR files. Each one is preventable with diligence at the offer stage.
Skipping the zoning and licensing verification before signing the contract. This is the highest-cost mistake in this guide. Canadians who underwrite the deal on AirDNA cash flow without first confirming with the city or county planning department that STR is a permitted use at the specific address regularly find out at DBPR licensing time that the address is in a prohibited zone. The contract is already binding, the financing is already structured around STR income, and the legal use is long-term rental at half the projected income. Always pull the zoning verification in writing before the FAR/BAR signature.
Picking a Lender That Does Not Underwrite STR Income. A meaningful share of DSCR lenders are LTR-only. They will close a loan against the long-term market rent regardless of how the borrower plans to operate the property. If the deal works only on STR cash flow and the lender uses LTR cash flow, the DSCR fails. Confirm STR-income acceptance on the first call to every prospective lender.
Using the AirDNA Rentalizer headline number as the qualifying income. The lender will haircut the AirDNA projection by 10 to 25 percent. A Canadian who underwrites the deal at the full AirDNA projection arrives at a higher DSCR than the lender's number and may be surprised at lower-than-expected loan amount or higher-than-expected pricing tier. Use the post-haircut figure in the offer-stage underwrite.
Ignoring the AirDNA Market Score. A Market Score below 60 means thin comparable data. Lenders may refuse to underwrite, or may haircut more aggressively. Newer or thinner-data markets need extra diligence on comparable selection.
Underestimating insurance on coastal STR properties. Coastal Florida STR insurance is materially more expensive than long-term-rental insurance on the same property because the policy covers commercial use, more frequent guest turnover, and (typically) higher liability limits. A property that DSCRs at 1.30 on a long-term insurance assumption may DSCR at 1.10 once the STR-rated policy is bound.
Assuming Airbnb and Vrbo collect every applicable tax. Airbnb and Vrbo collect Florida state sales tax and most county Tourist Development Taxes. They do not collect every local tax. Miami Beach Resort Tax and certain other municipal occupancy taxes require direct host registration and remittance. Failure to register can produce back-tax assessments and penalties.
Overestimating the property's STR yield by relying on top-of-market comparables. AirDNA reports use the comparable cluster median. A specific property whose finishes, location, or amenity set are below the comparable cluster median will underperform the projection. Conservative Canadian operators discount the AirDNA projection further (above the lender haircut) when they are not confident the property matches the comparable median.
Ignoring the Responsible Party requirement. Several Florida municipalities (Sunny Isles Beach, Miami Beach in some configurations) require a local Responsible Party physically present at the property within a one-hour response window. A Canadian operating remotely from Quebec must hire this local presence (property manager or dedicated service) and price it into the operating proforma.
Choosing the wrong US tax classification (Schedule E vs Schedule C). Aggressive service offerings can reclassify the activity as a US trade or business and trigger self-employment tax. Most passive STR operators land in Schedule E; the Canadian who personalizes the offering with concierge services, meals, or daily cleaning may be reclassified. Confirm classification with a cross-border tax specialist before launching a service-heavy strategy.
Forgetting T1135 reporting on the Canadian side. The Florida STR cost-amount threshold for T1135 is the same CAD 100,000 threshold as any other foreign property. Canadians with multiple US properties commonly cross the threshold without realizing it. T1135 reporting failure can extend the CRA reassessment window and trigger penalties.
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Section 8. Action checklist: from market selection to clear-to-close
Each step assumes the prior steps are complete.
- Pick the candidate market based on AirDNA Rentalizer market data, Florida Department of Revenue Tourist Development Tax data, and qualitative demand factors (beach, theme park, event corridor, year-round vs seasonal).
- Within the candidate market, pull a written zoning verification from the city or county planning department for the specific property address. Confirm STR is a permitted use under the applicable zoning code.
- Run an AirDNA Rentalizer report at the address. Verify the Projected Annual Revenue, ADR, Occupancy, and Market Score. Pull the comparable cluster and visually verify the comparables match the subject property's profile.
- Confirm HOA or condo-association rules permit STR. Some Florida HOAs and condo associations explicitly prohibit short-term rental even where city zoning allows it.
- Approach two to three STR-aware DSCR lenders for term sheets. Disclose foreign-national status, the AirDNA report, and the planned STR strategy. Ask each lender for: their AirDNA haircut, their LTV cap on STR, their rate-premium over LTR, and their STR-addendum requirements.
- Decide on the vesting structure (personal vs LLC) with input from a cross-border tax specialist before signing the term sheet.
- Form the US LLC if applicable. Apply for an EIN. Apply for an ITIN if not already held.
- Bind STR-rated insurance (not LTR insurance). Confirm the binder reflects commercial-use, higher liability limits, and adequate coverage for guest-related claims.
- Sign the term sheet, pay the appraisal fee, and lock the rate.
- Apply for the DBPR Vacation Rental License. Apply for any city or county STR license, BTR, or Certificate of Use required at the address. Register with the Florida Department of Revenue for sales tax and with the county for Tourist Development Tax.
- If the municipality requires a Responsible Party, retain the local property manager or designated responsible-party service.
- Submit the STR addendum, the AirDNA report, the zoning verification, and the licensing evidence to the lender.
- Close. Funds wire from the LLC's US account to the closing agent.
- Furnish and stage the property to match the AirDNA comparable cluster. Listing photography is a material driver of actual achieved revenue versus projection.
- Launch the listing. File Form W-8ECI with any property manager or platform that pays you net income. Plan for year-end Form 1040-NR with § 871(d) net election. Plan for T1135 reporting on the Canadian side.
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Section 9. Frequently asked questions
Will any DSCR lender accept AirDNA, or only some? Only some. The STR-aware DSCR segment is a subset of the broader DSCR market. Confirm STR-income acceptance on the first call. LTR-only DSCR lenders will revert to Form 1007 long-term market rent, which is typically 30 to 50 percent below STR projected income in vacation markets, sinking the DSCR ratio.
What if the property has 12 months of operating history already? Most STR-aware DSCR lenders prefer documented platform history (Airbnb / Vrbo statements) over AirDNA projections. Historic platform gross is typically haircut less aggressively (10 to 15 percent versus 15 to 25 percent for AirDNA projections), because the income is documented rather than projected. Provide 12 months of platform statements where available.
Can I refinance from an LTR DSCR loan into an STR DSCR loan if I switch strategies? Yes. If the property currently operates as long-term rental and you plan to switch to STR after refinance, the refinance lender can underwrite to AirDNA projections rather than the existing lease. The existing lease will need to be terminated or expire before STR operation begins. Plan the timeline so the refinance closes after lease termination but before significant STR vacancy starts.
Can I refinance from an STR DSCR loan into a conventional loan later? Theoretically yes, but conventional foreign-national programs typically do not underwrite STR income, so a refinance to conventional reverts the qualifying income to long-term market rent. If long-term rent supports the loan, refinance works; otherwise the conventional refi will fail or come at lower LTV.
What happens if the city changes the STR rules after I close? Local government can tighten or restrict STR operation post-purchase. Florida state preemption protects against new outright bans (post-2011), but cities can add registration, occupancy caps, and operational requirements. Existing properties may be subject to grandfathering in some cases and new rules in others. The 2024 SB 280 was vetoed and the prior local-control framework continues. [11]
Are there any Florida markets where STR DSCR is impossible? Effectively yes. Miami Beach single-family residential zones, many of Miami's residential transect zones, and Key West's main residential zoning districts make STR impossible at most addresses. Buy in those markets only if the address is verified as STR-permitted before contract.
Does an HOA matter as much as city zoning? Yes, sometimes more. A condo or homeowner association can prohibit STR even where city zoning permits it. Confirm via a written HOA estoppel or association attestation before contract. Most lenders require this attestation in the underwriting file.
Do I need a separate LLC for each STR property? Not for financing. DSCR lenders typically permit one LLC to hold multiple properties. For asset-protection reasons, some Canadian investors prefer one LLC per property. The decision is operational and asset-protection driven, not financing driven. Confirm with a Florida-licensed real-estate attorney.
Can I claim T1135 exemption by saying the STR is for personal use? No. The CRA personal-use exemption applies to vacation property used primarily by the owner for personal enjoyment. A property listed on Airbnb or Vrbo and producing rental income is rental property, not personal-use property, and is fully reportable on T1135 if the cost-amount threshold is met. Mixed-use properties (some personal use, some rental) can qualify for partial reporting if facts support it. [19]
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Section 10. Honest scope statement and what is not in this guide
This guide explains how AirDNA reports and STR-aware DSCR underwriting work for a Canadian foreign-national investor buying or refinancing a Florida short-term rental property. It is the financing-and-underwriting reference; it is not a market-selection, property-management, or operational-launch guide.
What is not in scope here:
- The DSCR purchase loan mechanics for long-term rentals. See the dedicated DSCR purchase guide in chapter 01.4.
- The DSCR cash-out refinance and BRRRR mechanics. See the dedicated cash-out refinance guide in chapter 01.4.
- Detailed market-selection analysis for Florida STR submarkets. See chapter 10 city guides as they are published.
- STR property-management vendor selection, listing setup, dynamic pricing strategies, and operational launch. These are operational disciplines covered in chapter 02 (owning and operating).
- The detailed mechanics of DBPR Vacation Rental Licensing application. See chapter 03 (renting) as these guides are published.
- The detailed Canadian and US tax interaction for STR specifically (Schedule E vs Schedule C classification, US trade-or-business analysis, Canadian rental-vs-business classification). See chapter 03 cross-border tax guides.
- Equivalent comparisons for Ontario, British Columbia, Alberta, and other Canadian provinces. The provincial layer in this guide uses Quebec as the reference; equivalent comparisons for other provinces are forthcoming.
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