Experiences "upscaling" your STR for higher rates versus competing on price

[JD Martin]

Good afternoon all my fellow STR'ers!

I have a home in Florida that I STR in Four Corners, FL when I'm not there. It is a good sized home (3000 sf) in a great location on a lake. I've done reasonably well renting it out, though I'm a little different than many STR owners in that it doesn't particularly bother me if it makes any money since I use it myself.

I'm at the point where I really need (or maybe want is a better term, since technically these things still function) to make some larger improvements - I want to remove the remaining carpet in the home for all LVT, finish out the modern touches I've put in like modern light fixtures, furniture, high dollar ceiling fans, etc, replace the countertops with a nice quartz, etc. For my own personal use and preferences, all of these things make sense. From a dollar cost point of view, I think they are probably of low utility, as a lot of the properties around here compete essentially on price only. 

My personal point of view is that I don't want to compete with the bottom feeders around here. Not only do I want a nicer home for the times I am there (several months during the year), I think that there could be a niche market for upscale properties that offer better furnishings and amenities. For example, up until now we've been strictly self-service, but I am considering adding some specific concierge services to stays. I am considering axing the weekend stay people as they seem to be hardest on properties and are also the cheapest/brokest guests. ETC. I've discussed the idea with my PM who doesn't think it is a bad idea but that it will almost certainly generate less bookings. That seems likely to me as well, though I'm not sure I care (I could leave the house vacant all year if I wanted). I'm not interested in "theming" like Star Wars or Disney rooms as my adult kids, siblings and older parents also come stay with us here and they don't need to sleep in Little Mermaid rooms. 

In any case, I'm hoping to get some insight from anyone who has upscaled their properties to attract a better class (and higher paying) of guests - what was your experience? Of course, if you're in the Orlando/Florida area that's a bonus, but anywhere is fine with me especially if it's a big vacation area. 

[John Carbone]

Quote from @JD Martin:

Good afternoon all my fellow STR'ers!

I have a home in Florida that I STR in Four Corners, FL when I'm not there. It is a good sized home (3000 sf) in a great location on a lake. I've done reasonably well renting it out, though I'm a little different than many STR owners in that it doesn't particularly bother me if it makes any money since I use it myself.

I'm at the point where I really need (or maybe want is a better term, since technically these things still function) to make some larger improvements - I want to remove the remaining carpet in the home for all LVT, finish out the modern touches I've put in like modern light fixtures, furniture, high dollar ceiling fans, etc, replace the countertops with a nice quartz, etc. For my own personal use and preferences, all of these things make sense. From a dollar cost point of view, I think they are probably of low utility, as a lot of the properties around here compete essentially on price only. 

My personal point of view is that I don't want to compete with the bottom feeders around here. Not only do I want a nicer home for the times I am there (several months during the year), I think that there could be a niche market for upscale properties that offer better furnishings and amenities. For example, up until now we've been strictly self-service, but I am considering adding some specific concierge services to stays. I am considering axing the weekend stay people as they seem to be hardest on properties and are also the cheapest/brokest guests. ETC. I've discussed the idea with my PM who doesn't think it is a bad idea but that it will almost certainly generate less bookings. That seems likely to me as well, though I'm not sure I care (I could leave the house vacant all year if I wanted). I'm not interested in "theming" like Star Wars or Disney rooms as my adult kids, siblings and older parents also come stay with us here and they don't need to sleep in Little Mermaid rooms. 

In any case, I'm hoping to get some insight from anyone who has upscaled their properties to attract a better class (and higher paying) of guests - what was your experience? Of course, if you're in the Orlando/Florida area that's a bonus, but anywhere is fine with me especially if it's a big vacation area. 

I go pretty much All out for my STR renovations. Not ridiculously priced stuff, but I try to make everything as updated as possible. I still price compare on everything, but the way I see it, the labor to do stuff should be the same so might as well add better quality material. I’d especially do this if I used the properties myself. In the long run, since your renting this out, someone else will be paying for it, it’s just a matter of how long before it happens.