09/03/2026
Tenant Improvement Gotchas to Avoid in DSCR Financing
Tenant improvements can make a rental property more attractive, increase rents, and strengthen long-term value—but they can also create unexpected problems when an investor is trying to obtain DSCR financing.
From unseasoned rents and unfinished construction to appraisal issues, lease concessions, permits, and occupancy requirements, improvements that look great from an investment perspective may not always translate cleanly into loan qualification.
This newsletter explores the tenant improvement gotchas real estate investors should understand before applying for DSCR financing—and how to structure the project, lease, and financing strategy to avoid surprises at closing.