Renovating a short-term rental is one of the most exciting — and risky — parts of the investment journey. It’s where you can create value, elevate guest experience, and separate your property from the competition… or burn through your budget on things that won’t move the needle.
This guide is built to help you prioritize high-impact renovations, avoid common money pits, and make every dollar count toward boosting your nightly rate and occupancy.
One of the biggest mistakes new investors make? Renovating the home as if they’re living in it.
You’re not designing for your taste — you’re designing for guests. Your goal is to maximize the “scroll appeal” of your listing, eliminate friction during a stay, and create a space that photographs beautifully.
Before you start demo day, get crystal clear on three things:
Now, let’s dive into where to splurge and where to save.
These are the renovations and upgrades that consistently yield a strong return in most STR markets.
💡 ROI Tip: Most guests don’t cook extensively. Make it pretty and photo-worthy, not chef-level.
💡 ROI Tip: A $300–$500 bathroom facelift can earn you 20–30% higher perceived value in photos.
Outdoor areas are booking boosters, especially in drive-to or vacation destinations.
Top ROI features:
💡 ROI Tip: Listings with well-lit outdoor spaces earn more weekend and last-minute bookings.
Paint is the cheapest high-ROI upgrade.
💡 ROI Tip: Guests perceive better lighting as “cleaner” and “higher-end.”
Durable, easy-to-clean flooring prevents complaints and saves cleaning time.
💡 ROI Tip: LVP + area rugs = durable, stylish, and cleaner-friendly combo.
Some upgrades may feel important but don’t justify their cost in STRs. Here’s what you can skip or delay unless it’s critical.
💸 Savings Tip: Scratch-and-dent or bundle deals = lower cost, same appeal
👎 Risk: The more customized, the harder (and pricier) it is to maintain or replace
💡 Simplicity wins — if a guest can’t figure it out in 30 seconds, it’s a support ticket waiting to happen
💸 Better Alternatives: Quartz, LVP, performance fabrics, and faux leathers
| Category | Budget Range | Notes |
| Paint + Lighting | $3,000–$5,000 | Big impact, budget-friendly |
| Kitchen Refresh | $5,000–$10,000 | Cabinet paint, lighting, counters |
| Bathroom Updates | $2,000–$5,000 | Light fixtures, vanities, mirrors |
| Flooring (LVP) | $4,000–$8,000 | Depends on size and layout |
| Outdoor Space | $3,000–$7,000 | Firepit, dining set, landscaping |
| Furniture + Decor | $8,000–$15,000 | Mid-market, STR-optimized brands |
| Smart Tech | $1,000–$2,500 | Lock, thermostat, Wi-Fi, cameras |
Total Cosmetic Rehab: $26,000–$52,500
Expected ADR Increase: +15%–30%, depending on market and design
Don’t forget your photo plan! After the work is done, take the time to:
📌 Pro tip: Add captions to photos on Airbnb. Guide guests through your home visually.
Renovating a short-term rental doesn’t mean gutting everything or going full HGTV. It means being strategic, focusing on what matters most to guests, and building a space that books itself with scroll-stopping visuals and thoughtful upgrades.
So before you spend $30K on a kitchen gut or a marble bathroom, ask:
Will this drive more bookings or better reviews?
If not, save that money — and reinvest it in features that will.
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