As a short-term rental property owner, maintaining and keeping your rental space updated is crucial to staying competitive and attracting potential guests. So sooner or later, you’ll have to renovate your vacation rental property.
However, it's essential to keep in mind that renovating a vacation rental is quite different from renovating your own home. Home renovation projects are a way to unleash your individuality and create your own style. And when you undertake a rental renovation, you aim to create something that will suit your potential guests while being hard-wearing and durable enough to be cost-effective.
If you are considering remodeling your rental property, this blog offers some tips on how to renovate your rental space to make it more appealing to travelers without breaking the bank.
You may also want to check out our tips on decorating ideas that will help you enhance your guest experience and get positive reviews.
Remodeling Rental Property: Why Should You Do That?
Wear and tear. The most apparent reason why property owners upgrade and renovate their short-term rentals is wear and tear, since nothing lasts forever. But it’s not easy to estimate the lifespan of such expensive investments as major appliances or vacation rental decor. Still, it’s common sense to realize that guests won’t be as careful with appliances and furniture around the rental as they are with their personal belongings.
Competitive advantage. To build a successful vacation rental business, your rental space should consistently meet the highest standards of comfort, cleanliness, and convenience. Modern travelers have high expectations when looking for a place to stay, so there will come a time when you’ll need to make some improvements to ensure you meet them.
Your goal is to create a welcoming atmosphere, so consider adding popular vacation rental amenities such as a laptop-friendly workspace, air conditioning, a washer, or a Jacuzzi. Many travelers think they are essential for a comfortable stay. That will help you get more bookings. However, to make your guests feel at home, you must ensure effective communication and respond to their messages promptly.
Being available to your guests 24/7 is very challenging, especially if you have multiple listings. However, you can answer your guests’ questions more quickly if you use short-term rental management software like Hospitable, which features a question auto-detection feature.
You can utilize AI tools in your Inbox when messaging your guests manually. Use the Suggest with AI button to quickly draft detailed responses to guest messages, based on past replies and booking details. You can edit AI-generated messages before sending them to your guests. You can also use the Improve with AI button to rewrite your messages and make them warm and professional.
Have conversations with your guests even when you sleep
Attracting a wider audience. You will also need to make a few adjustments around the house if you are targeting a new audience. For example, you may want to make your property eco-friendly or pet-friendly to expand your audience, or even remodel it to appeal to a new segment of customers.
Reducing maintenance costs. Another reason to upgrade your rental property is to decrease your ongoing expenses, such as utility costs and expensive maintenance. Although energy-efficient light bulbs and water-savvy toilets may cost more initially, they allow you to save money in the long run.
What Are the Renovation Costs for Rental Property?
Renovation costs for rental property may vary significantly. The amount you’ll spend depends on the current state of your vacation rental home, the amount you’re willing to invest, and the costs associated with the location.
To get an approximate idea of your remodeling budget, consider the overall value of your vacation rental property. You shouldn’t spend more than 10 to 15% of your home’s value on a single room. You can’t renovate everything, so consider your renovation priorities and spend money only on making changes where necessary.
It’s essential to consider all expenses before starting your rental renovation project, so you don’t exceed your budget or end up with an incomplete upgrade. You should also brainstorm what additional costs may occur during the renovation and account for them in your budget.
Remodeling your rental property requires an investment, so it’s about maths above everything else. With a budget, you’ll be able to see clearly what you can afford and when you should stop. Then you won’t get tempted by visions of rental renovations that you don’t need and can’t afford.
Download our free guide to learn about cost-saving techniques that can help you make informed decisions to balance aesthetics vs budget when renovating your property for short-term rentals.
9 Solutions to Reduce Operational Costs
Rental Renovation Ideas
There are many ways to spruce up a space for guests. But what renovations add the most value to a vacation rental property? Here are some interior and exterior rental renovation ideas with the best ROI.
Update your flooring
New flooring can significantly transform the appearance and functionality of a rental space. You can install new floors in certain rooms or the entire home. It will depend on the condition and the style of the existing flooring. It’s better to choose durable flooring, such as luxury vinyl tile or engineered hardwood, that will withstand the constant coming and going of your short-term rental guests. Such floors look elegant and are also easy to clean and maintain.
Remodel the bathroom
Guests traveling for a getaway or vacation look for a clean, up-to-date bathroom with modern touches, so remodeling this area of your rental is important to ensure it’s attractive to potential guests. A well-designed bathroom that combines functionality, comfort, and thoughtful details is an excellent way to elevate the guest experience.
You certainly don’t have to recreate a spa in your bathroom space, but sparkling fixtures, beautiful tile, and a bright coat of paint on the walls can achieve the desired relaxation effect. You can purchase large, absorbent, spa-quality towels and add small touches, such as nice-smelling soaps or candles, to make your guests feel special. You can also install lighter, more attractive lighting.
Renovate the kitchen
One of the primary reasons travelers opt for vacation rentals over hotels is that they want to have a full kitchen to cook in. This means they look for a kitchen with modern appliances, a dining table, stylish cabinets and countertops, and contemporary fixtures.
So if the kitchen in your rental looks like it belongs in a different century, upgrading the flooring, backsplash, cabinets, and countertops can give it a contemporary flair. A newly remodeled kitchen will stand out in your listing photos and help you earn amazing reviews. Designing a kitchen that balances style and functionality presents many creative challenges, so you may want to check out our article where we share some interesting Airbnb kitchen ideas.
Renovating a kitchen entirely isn’t always the best route. It’s expensive and can take a long time, and you want your vacation home to be available for rent. However, by blocking off a week or two to implement some quick upgrades, you’ll make up for the time and money spent with more bookings and happier guests. And you’ll be able to charge higher nightly rates for your property.
If you’re planning to block some dates on your calendar for upgrading your short-term rental property, consider using software with a channel manager feature, such as Hospitable. Our tool will automatically sync your booking calendars on all your connected channels, so you don’t have to manually update your availability and pricing. Moreover, with Hospitable, you’ll be able to automate most routine operations, making your business more efficient.
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Energy efficiency
Energy-efficient vacation rentals appeal to eco-conscious travelers who prioritize sustainability. Improving the energy efficiency of your property also means lower costs on utility bills. Consider upgrading electrical sockets and light switches and replacing inefficient appliances with eco-friendly models that offer advanced features and improved performance.
Other eco-friendly practices include installing low-flow faucets, showerheads, and toilets that reduce water consumption, as well as upgrading heating and cooling systems. You can also consider installing smart thermostats that make it easy to control the temperature in your rental and reduce energy consumption, while ensuring comfort for your guests.
The good news is that you can connect your smart thermostats to Hospitable to automate temperature control and optimize energy usage in your property. Currently, the supported thermostats include models from Ecobee and Honeywell, with more to be added soon.
Once you connect your smart thermostats, our system will automatically adjust the temperature settings based on your guest’s reservation status. Watch the video to learn how this feature works, and refer to our help article for more details.
Don’t forget the exterior
Location and curb appeal are significant factors that travelers consider when choosing a place to stay. The easiest way to completely transform the look of your rental property is to update the exterior paint. You can use bold colors to make a statement and set your house apart from the rest.
Adding shrubbery, small trees, or flowers to the front of your home will create a welcoming atmosphere for your guests and make a good first impression. Larger shrubs and trees in the backyard can be a great way to add privacy and provide shade for your guests.
You may also want to check out our blog article to find some stunning Airbnb backyard ideas that can help you create a welcoming and comfortable outdoor space.
Final Thoughts
Rental renovation is a way to ensure that your STR property remains in good condition and stays attractive to potential guests. Even the most minor updates to your vacation rental can help you get more bookings and great reviews, and increase your income.
But you should remember that your remodeling project is an investment, and your goal is to increase your ROI. That’s why you need to identify which renovations make sense for your vacation rental home, put together a plan, and then take steps to minimize the risk of the project going over budget.
You may also want to check out some interesting Airbnb interior design tips and ideas that can help make your property stand out from the crowd.
