Designing a short-term rental (STR) requires more than aesthetics, it’s about creating a space that drives returns. Two critical factors to consider when budgeting your unit setup are setup time to market and break-even time-based budgeting.
Setup Time to Market:
The faster your property is guest-ready, the sooner it starts generating revenue. Focus on essentials first to minimize downtime while still offering a high-quality guest experience. A well-planned furnishing strategy can help you launch quickly without compromising on impact.
Break-Even Time-Based Budgeting:
To invest wisely, determine your property’s revenue potential upfront and align your furnishing expenses accordingly. Budgeting with a goal of breaking even within 12 months ensures your investment is both strategic and efficient.
To help clients make informed decisions, we have partnered with Sigma Property Group to provide revenue forecasts and due diligence. By combining investment strategy with design expertise, we ensure owners are budgeting and designing for maximum ROI while minimizing risk.
With the right planning and support, your STR can go from concept to cash flow seamlessly and profitably.
The Game-Changing Benefits of Hiring a Pro Designer
VIP Package (Full Service Design)
Approximate Design Fee Per Room: $2,000 - $3,000
What’s Included: A VIP Full-service design encompasses everything from initial consultations to concept development, sourcing furniture and decor, managing purchases, and coordinating installation. It’s perfect for larger properties or high-end rentals requiring a polished, hands-off approach.
Pros: Completely managed by the designer, often with trade discounts and exclusive sourcing.
Cons: Higher upfront cost, although, your breakeven is often sooner due to the ability to rent at higher rates.
Essentials Package (Remote 3D Design)
Approximate Design Fee Per Room: $749
What’s Included: Ideal for budget-conscious owners, remote 3D design offers remote design services, making it a great choice if you’re focusing on just a few main rooms. Designers provide concepts, and shopping lists, and manage purchases and deliveries. Assembly and implementation are optional, as owners can choose to assemble themselves to save on costs.
Pros: Budget-friendly and flexible, great for single rooms or smaller properties
Cons: Owners must manage installation and setup.
Finishing Touches Package (Focused on Accessorizing)
What’s Included: Ideal for DIY'er who already have the furniture pieces in place but need a designer's touch to level up the space. This is also a great option for STR that have been furnished and on the rental market for a while but needs decor upgrading to increase its potential and return on investment.
Pros: Budget-friendly and great for investors who have put in the sweat equity of getting the main furniture in the space.
Cons: Owners must manage installation and setup. Only for accessorizing and finishing details, it does not include major furniture pieces.
Visual Staging
Approximate Design Fee: $175/hr (Approx hours per room)
What’s Included: Virtual staging adds digital furniture and decor to your space, boosting its appeal in online listings. It’s perfect for properties under renovation or waiting for a sale to close—investors can list the property early and secure future bookings.
Pros: Affordable and quick.
Cons: The accuracy between the staged photos and the actual space depends on the furniture and color scheme the investor ultimately chooses.
Factors Influencing Design Costs
Property Size: Larger or high-end properties cost more.
Luxe level: low-mid - or mid-high-end look and feel.
Scope of Service: Additional features like furniture assembly, on-site visits, or custom furniture increase costs.
How to Get the Best Value
For smaller budgets, consider packages by the room or hourly design work. These services balance aesthetics and functionality while staying cost-efficient. Designers specializing in STRs like us often streamline their processes to deliver impactful results at reasonable rates.
The Cost of Furnishing a STR
We get it! As a savvy investor, you want to make the most of your money, but cutting corners on furniture quality and layout can backfire. Many learn this the hard way when bookings and reviews don’t meet expectations. While some might opt for an Ikea shopping spree or secondhand furniture, you'll be surprised at how much your ROI can improve with that first investment in quality furnishings and decor. Although DIY might save you money upfront, hiring an interior designer usually leads to a higher ROI, especially in competitive or high-end markets where guest experience and presentation are key. The initial design investment can quickly pay off through more bookings, higher pricing, and an overall better guest experience.
Beyond design services, furnishing your property is a critical investment. Here’s what to expect:
1. Living Room
Budget: $3,500 to $6,300 USD |
CAD $5,000 to CAD $9,000
What’s Included: Sofa, coffee and side tables, chairs, rug, media console, lighting, wall art, and decor.
Key Tip: Durable sofas and striking rugs create great first impressions. Ensure there is enough comfortable seating for every guest
2. Bedroom
Budget: $3,000 to $5,000 USD per bedroom | CAD $4,500 to CAD $7,000 per bedroom
What’s Included: Bed frame, mattress, nightstands, mirrors, lamps, wall art, decor, rug and linens.
Key Tip: Invest in quality mattresses for guest satisfaction. Consider adding additional beds in the form of a pull-out, or Murphy bed.
3. Kitchen
Budget: $2,000 to $3,500 USD |
CAD $2,900 to CAD $5,000
What’s Included: cookware, dishes, and small appliances.
Key Tip: Functional and easy-to-clean options are ideal
4. Dinning Room
Budget: $2,000 to $3,500 USD |
CAD $2,800 to CAD $5,000
What’s Included: Dining sets, rug, lighting, console table, decor, and rug.
Key Tip: Functional, adjustable to the maximum number of bookable guests, and easy-to-clean options are ideal
5. Entryway
Budget: $300 to $1,000 USD |
CAD $400 to CAD $1,200
What’s Included: Console table or shelf, hooks, mirror, rug, and small decor.
Key Tip: Functional storage makes a great first impression.
6. Bathroom
Budget: $1,000 to $1,400 USD |
CAD $1,500 to CAD $2,000
What’s Included: Towels, storage, toiletries, area rugs, and decor.
Key Tip: Plush towels and upgraded hardware create a luxury feel.
7. Powder Room
Budget: $350 to $700 USD |
CAD $500 to CAD $1,000
What’s Included: Towels, toiletries, area rug and decor.
Key Tip: Plush towels and upgraded hardware create a luxury feel.
8. Outdoor Space (if applicable)
Budget: $500 to $3,000+ USD | CAD $700 to CAD $4,000+
What’s Included: Seating, string lights, fire pit, and plants.
Key Tip: Durable furniture enhances outdoor appeal.
Investing in professional design and quality furnishings not only enhances guest experiences but also boosts your rental’s marketability. Choose the service level that fits your budget and goals, and watch your bookings soar!
For a 1,000 sq. ft. 2-bedroom, 1-bath property:
Budget-Friendly: $7,000 to $15,000 USD | CAD $8,000 to CAD $16,000
Mid-Range: $15,000 to $25,000 USD | CAD $18,000 to CAD $32,000
High-End: $25,000 to $50,000+ USD | CAD $28,000 to CAD $55,000+
The estimated ROI figures come from a mix of industry reports, short-term rental performance studies, and real estate market trends. Key sources include:
Airbnb & Short-Term Rental Market Trends: Data from Airbnb and platforms like VRBO and Booking.com shows that professionally designed properties with appealing photos tend to have higher occupancy and nightly rates.
Design and Real Estate Studies: Research suggests well-designed properties have a 20%–50% increase in rental income and 5%–10% increase in property value during a sale.
Guest Expectations and Design Impact: Studies from Guestline and AirDNA indicate that better design leads to higher guest satisfaction, more positive reviews, and higher occupancy rates. According to Airbnb and other short-term rental sources, professional photos of well-designed spaces can boost booking rates by 20% to 40%, depending on location and market as of 2024.
The Takeaway
Yes, professional design services do require an investment, but the numbers prove that it positively impacts your returns. Properties that are professionally designed can see booking rates and nightly rates that are 40% to 50% higher than those that aren't. Well-designed spaces look great in photos and grab more attention on platforms like Airbnb, which helps create a better guest experience. This leads to better reviews, repeat bookings, and referrals.
If you'd like to learn more about how we can help with your investment property, give us a call! During our free consultation, we can chat about your needs, and budget, and create a quote just for you. Schedule your call here!
We’d love to collaborate with you!
STR Design Lab Team & Sigma Property Group