Are vacation rentals allowed by lenders?

[Ana Rodriguez]

Hello BP community,

Do banks allow for properties to be leased as vacation rentals? If there is already a mortgage agreement in place, what would prohibit owners from entering the short term rental arena vs doing long-term rent? What wording would refer to this in the agreement, which currently mentions "income-producing " and royalties.

Any help is greatly appreciated.

Thank you!

[Greg Franck]

@Ana Rodriguez thanks for the clarity Ana, that is an animal of different stripes... Hope that you get an answer. I would be curious as well for my own personal knowledge.