What does the short-stay actually clear?

What the property is worth today. Net yield is the cash left after costs, divided by this value.

The price of one booked night, before management and platform fees.

The share of nights in a year you expect to be booked. 70% is about 255 nights. Empty nights earn nothing.

Costs that stay much the same whether the place is booked: insurance, a rates loading, power standing charges, and similar. Management and platform fees are worked out separately.

The share of gross booking revenue paid to a property manager. This model uses 15 to 20%. The default is 18%.

The share of gross revenue a lender ignores. A 40% haircut means the bank counts 60% of turnover. That shaded figure is what a lender is likely to count.

What the same property would earn on a normal tenancy. Above zero, the bank-recognised figure is the lower of the shaded short-stay income and a year of this rent. Zero skips that comparison.