Short term rental property renovation options

[Chris Muller]

Okay this is a new post playing off my last one in regards to the short term property renovations.

The property is a small acreage with a rustic farmhouse vibe. Currently 3 bed/2 bath and can sleep 8 (king bed, queen bed, 2 singles and a pull out queen sofa.

Current amenities are a large deck with pool and hot tub, Lakeview, large outdoor firepit area, a small orchard, 1 RV setup with full services for additional guests (newer unit and can accommodate 4 more guests)

We have come up with 3 options and have a $30k budget. All of these fit within the budget.

1. kitchen - currently a 90’s kitchen of older melamine/oak trimmer cabinets with an older cooktop and wall over. Functional, decent condition but no wow factor.

Would redo kitchen with modern shakers, quartz counters, and update the flooring. Would have a custom hood fan and open upper shelving. With this would also be redoing the master bath. Again currently decent, just a bit older.

2. Basement reno - currently not a very inviting unfinished basement where laundry is located and access to pool equipment under the deck.

Would finish the basement to add a 4th bedroom and additional space for a games room and small workout/gym area. Would add 700 sq-ft of living area to the upper 1250. This would allow for upto another 4 guests with the bedroom and another pullout. Proper egress would be provided of course. Drywall for walls and drop ceiling etc

3. Outdoor rehab/Sauna area - this would be adding an area near the pool deck for an outdoor 4-6 person barrel sauna (electric) and a deck area setup with plunge pools and outdoor shower. With this would be redoing the landscaping around the home and adding some irrigation for the main lawn area.

Out of these options what brings the best ROI?

We are in the Okanagan Valley in British Columbia (well just north in the Shuswap region) - hot summers and snowy winters.

The winter would attract families, snowmobilers, and winter activity enthusiasts.

Where would you put your $$?

[Jon Martin]

All of the backyard/fun stuff is great but IMO you will get the most measurable ROI from adding another bedroom. If you look at revenue breakdowns between 3 and 4 bedrooms the slope hockeysticks in most markets. It also opens up the option of getting more than one family in the same place, which can be hard to do comfortably in a 3/2 (depending on family size).

Plus it sounds like you would still have room for a game room, which is also a nice addition that will attract more bookings. 

Maybe there is some way to breathe some life into the kitchen without breaking the bank? You could easily replace the uppers or do floating shelves without messing with countertops and then paint the lowers. There's some decent LVP out there that will look fine in photos without costing too much. At the end of the day, if your place is in a beautiful location, clean and has lots of beds most will not care about the kitchen being a bit dated.