This is the sixth article from our short-term rental design series. We’ve consulted several professional STR designers in the Minoan community to bring hosts the best design advice from their experiences. Their expertise is invaluable to both new and seasoned hosts, and you'll see their projects highlighted throughout this series.
You may think design doesn’t matter in a short-term rental property — guests just want an inexpensive place to stay, right? Wrong. Design is a crucial element that can elevate the guest experience at short-term vacation rentals. From creating a pleasant atmosphere to enhancing functionality, thoughtful design leaves a lasting impression on guests. In this article, we explore why design matters in the realm of short-term rentals, backed by insights from four professional designers and hosts who showcase stunning properties as real-life examples of design done right.
1. Design draws in a larger market of guests
Focusing on design has the ability to expand the pool of potential guests eager to experience your property. From captivating interior decor to thoughtful amenities and eye-catching furnishings, each element contributes to the overall appeal of the property, enticing groups of travelers that were not initially considering the location of your property
“I own and designed a short-term rental in a secondary market, 45 minutes from a popular ski area. We went all in on the design, but we thought we would mostly get workers in town for their jobs, people visiting family, etc…. But, we are routinely getting guests who are coming to the area for vacation and are willing to drive that 45 minutes to the resort just because they want to stay at our property! It’s extremely clear that design makes a difference.” – Paige Hayes, Interior Designer
2. Investing in design can give you a strong return
Investing in design for your short-term rental vacation property can yield a robust return on investment (ROI) by enhancing the overall guest experience. Guests are willing to pay more for homes with jaw-dropping designs. If you’re struggling to maximize your booking potential, investing in design may seem daunting, but for many STR hosts it is a catalyst that jump-starts success in the vacation rental property industry.
“We worked with a client who had a Fort Lauderdale property that was previously a short-term rental and was making $150k a year in revenue. Now, having made no renovations, just design and cosmetic upgrades, the property is projected to make a staggering $300,000, doubling their yearly revenue. This case clearly demonstrates that the right design, captivating photography, and strong management can bring about an impressive return on investment.”
– Somerled Designs, STR Interior Designer
3. You can increase your ADR after improving design
ADR stands for Average Daily Rate, which is the average dollar amount hosts earn at their property. Vacation rental owners can leverage strong interior design to differentiate their property in a competitive market, command higher nightly rates, and ultimately maximize their ADR, thus driving greater profitability and success in the short-term rental industry.
“I have one property in Banner Elk, North Carolina, that went from an ADR of $600 to $1,300 ADR after I redesigned the entire house. That's more than a 2x increase!” – Brea Faeth, STR Interior Designer
4. Design gives you a leg up on the competition
In popular vacation destinations, there’s a plethora of properties for guests to choose from. Many of these properties have similar floor plans, locations, and square footage. Similar properties lacking in design may appear uninspired or generic, failing to evoke excitement or allure potential guests in like well-designed properties do. Ultimately, the investment in strong interior design not only enhances the property's visual appeal but also elevates its perceived value, leaving a lasting impression on guests and setting it apart as a desirable destination in the competitive vacation rental market.
“When comparing one of my own properties to a neighboring one (both properties have the same floor plan, building materials, and layout), I realized the only difference is that with my property, I invested in a curated design geared toward my ideal guest. After reviewing our numbers and doing a comparative analysis, we were able to determine that our property's ROI was 157.5% more than our neighbor – all due to the design.” – Tatianna Taylor-Tait, STR Interior Designer and Coach
If you’re thinking of making an investment in design, consider this your sign! Become a Minoan Member for free and get access to incredible deals on show-stopping pieces for your vacation rental property. Join today!
