How much should I spend furnishing my vacation rental? (interior design expert advice)
With the explosion of vacation rental properties in the Branson, Missouri, area, this is usually the first question I hear from investors – and rightfully so. Buying a short-term rental property is a business decision. To make a great profit, you must consider not only the purchase price of the building but also the cost to properly furnish and equip this “home away from home.” There’s not a “one size fits all” dollar amount. But I have a special process to estimate the investment budget for each interior design client.
Ask the right questions to understand vacation rental interior design budgeting
Three important questions I ask at the start of each vacation rental interior design project:
- Level: What “level” would you consider your short-term rental property (basic, mid-tier, or luxury)?
- Size: What is the square footage of your vacation rental property?
- Professional help: Will you set this up yourself or hire a designer and project manager?
What “furnishings” does a vacation rental property need?
When we talk about budgeting short-term rental property “furnishings” the features we include are:
- All the furniture in each room (beds, couches, nightstands, etc.) as well as patio furniture.
- All the accessories and decor that set the mood and give your space a theme (artwork, throw pillows, blankets, rugs, plants, and more).
- All the other functional items, such as towels, sheets, pillows, kitchen supplies, etc.
- See my article on ‘How to “equip” your vacation rental for success’
Understand your target audience to understand your investment
The first question is key when assessing how much to spend on furnishings. Not all vacation rentals require the same type or level of furnishings.
- What is your guest's expectation level at this particular rental?
- How much will they be paying per night?
- Who is the target guest for your vacation rental?
Answering these questions will help you assess whether your vacation rental needs to be furnished at a Basic Level, Mid-Tier Level, or Luxury Level.
The most reliable budget model for vacation rental properties
The second question is critical since square footage is a determining factor in all real estate investing. Some designers may use a flat fee pricing model, or per bedroom pricing model, but in my experience, the square footage pricing model is the most accurate in determining actual costs.
The vacation rental budgeting model I use at Branson Upstaging ranges from:
- Basic Level: Starting at $15 per square foot
- Luxury Level: Up to $26 per square foot
Using the square footage of the property and multiplying that by the level of investment (basic, mid-tier, or lux) will give us the base to factor furniture budget.
Other nightly rental set-up costs
When I work with clients, my square footage pricing model only applies to essential furnishings in the bedrooms and common rooms. You need to add separate line items for kitchen and bathroom essentials (except for the dinning table), as these prices are based on your max guest occupancy.
For extra character and appeal you may want to add amenities like gaming tables, a hot tub, or a fire pit. These items will also be added as separate line items in your budget.
How much should you outsource when setting up your short-term rental property?
You may be great at choosing great investment properties, but do you have the time and talent needed to prepare it for listing on Airbnb or Vrbo? Consider these details:
- How much of this process are you willing to take on yourself?
- Should you consult a Vacation Rental Interior Design Service?
- How will you find all the furniture and accessories?
- Where will these pieces be delivered, and who will receive them?
- Who will assemble and place each piece for optimal usage and appeal?
- Will you manage this process (and any subcontractors) yourself, or should you hire a project manager?
If you live in the same area as your vacation rental property – and have the time to handle all the ordering, logistics, and installation – then you can budget based solely on the cost of goods needed.
But if you live far away (or don’t have time to be on-site), you must also factor in design and project management costs. These will vary based on the person or company you hire, so be sure to find out those fees up front, and add them to the cost of your total investment.
Proper planning will help you manage the investment and minimize unwanted surprises!
Does this sound overwhelming? I’m here to help!
I am a certified Short-term Rental Stylist. You can book a
free discovery call with me to learn how Branson Upstaging can help you find your property’s full potential for success in the vacation rental business.
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