Industry Insights
Remodeling and Designing High-Performing Short-Term Rentals
Discover how innovative design solutions and strategic amenities can help elevate your STR property’s performance and increase revenue.
In this episode of the Hospitable Hosts podcast, we welcome Mark Lumpkin of STR Cribs. This company helps investors and owners renovate and design profitable short-term rental properties nationwide. We delve deep into the world of short-term rental upgrades. Mark shares how STR Cribs can help property owners design and build their ideal short-term rental and advises on creating a property your guests can enjoy.
Press Play now to find out how innovative design solutions and strategic amenities can help elevate your STR property’s performance and increase revenue.
If you prefer to read the highlights, we’ve got a summary of the key takeaways below.
STR Cribs’ Approach to Setting Up Short-Term Rentals
Mark shares he has been an avid traveler for many years, and he fell in love with Airbnb about 10 years ago when traveling the world with his wife. “I was in the construction industry, and then, somehow, found my way into this niche of short-term rental construction. Then, at STR Cribs. We're a licensed general contractor. We do construction, design, and amenities.”
Mark explains that every STR property is unique, so they take them on a case-by-case basis. The duration of each renovation project depends on the market you’re in and the scope of work required to make a property guest-ready.
“You might have a new construction house that just needs furniture and decorations, and to mount some TVs. You can do something like that in a few weeks. Other projects require permitting, inspections, digging in pools, and pouring concrete. Those types of projects tend to take months.” Yet, Mark notes that the golden rule for the STR Cribs team is that most projects take about two to three months to go from empty house to guest-ready.
Doing Due Diligence When Buying STRs
“I'm a big fan of doing professional inspections on everything—the property, the house, the foundation, doing termite and swimming pool inspections,” Mark says. “That oftentimes will raise red flags that you need to know about and prepare you for potential costs that could be coming.” He also recommends paying close attention to anything that could pose a safety issue and ensuring the property is safe for guests.
Designing Properties to Last
Mark notes that although aesthetics is very important, you should also consider the long-term maintenance of STR properties when designing and choosing furniture, and use durable, easy-to-clean materials. He recommends avoiding carpet. Instead, consider luxury vinyl plank flooring, which is much easier to maintain and clean. “Doing things like that on the construction side, oftentimes, makes your life a whole lot easier,” Mark emphasizes.
ROI of Amenities
Mark discusses how professional design and the right amenities can help hosts achieve higher occupancy and get higher revenue per night. He shares an example of two similar lakeside STR properties, one of which was renovated and designed by the STR Cribs team. “Same lake, same view, same bedroom, bathroom count. Two completely different home setups, and the revenue is drastic. So there's absolutely a premium.”
Mark points out that the revenue you can generate from your short-term rental also depends on how many people your property can accommodate. “A house with more bedrooms in general is going to generate more revenue than a house with fewer bedrooms. And then amenities. If you've got a house with a hot tub in almost every market in the United States of America, that house will produce about $15,000 in additional revenue a year.”
Mark recommends investing in comfortable mattresses and high-quality bedding because guests on vacation typically spend about 60% of their time at the property sleeping.
“I can't express the importance of great beds and great linens as being one of the top things that you should invest in your property. And spending 10 or 20% more than the cheapest possible option will yield a product that is twice as good. I would also invest in some of the creature comforts like a coffee bar and having tea and having just some of those nice extra amenities that people really appreciate when they go to a 5-star hotel.”
Customizing STR Properties to Guest Avatars
Discussing what property owners can do to bring a bit more life into their properties on a budget, Mark points out that understanding guest demographics is key when making decisions on property upgrades and amenities, as it’s all about creating experiences that resonate with your ideal guest persona.
“It really depends on what market you're in and what you have to work with on the property,” he says. “If you're on a budget, really identify who's the guest avatar, who's coming to the property, and then figure out some small things that would make them really comfortable and would, in a small way, increase their experience.”
Listen to the full episode of the Hospitable Hosts podcast to learn more about the strategies of modernizing your properties that drive success in the short-term rental market.
Table of contents
STR Cribs’ Approach to Setting Up Short-Term Rentals
Doing Due Diligence When Buying STRs
Designing Properties to Last
ROI of Amenities
Customizing STR Properties to Guest Avatars