Air BNB BRRRR- best value add

[Alexandra Reeves]

Hello all, we are so excited to close on our first StR/ MTR that will be a complete gut job. The property is a 3/2, in a great family friendly area and very close to a commuter college. It’s in very bad condition right now and we’re trying to determine what areas we want to make nice and what areas we can get by with basic updates. 

I’ve heard for AirBnBs the bathrooms don’t matter much and we plan to put money/ focus into the living room, kitchen and outdoor space. But I’m curious on others thoughts on priorities when you have such a large rehab. I’m thinking a less expensive granite vs. quartz in kitchen, maybe not spending a lot on the showers/ glass and trying to finding cheaper cabinets for everything but the kitchen. 

[Brook Davenport]

Congrats on your upcoming renovation!

I found that the bookerer of the property spends the most money with me, with a 3/2 I would assume you are having large single families in there. I would target the master bedroom and bathroom since it is most likely that couple that is spending the majority of the money on the stay (and the one making the booking decision/leaving the review). Kitchens and living areas will be other high traffic areas for those two as well. 

It’s a balancing act between functionality and curb appeal as well. Quartz won’t get you a 5 star review or boost your ADR per se, but having a place parents can let their kids play may. Best of luck!

[Annie Seurer]

Quote from @Alexandra Reeves:

Hello all, we are so excited to close on our first StR/ MTR that will be a complete gut job. The property is a 3/2, in a great family friendly area and very close to a commuter college. It’s in very bad condition right now and we’re trying to determine what areas we want to make nice and what areas we can get by with basic updates. 

I’ve heard for AirBnBs the bathrooms don’t matter much and we plan to put money/ focus into the living room, kitchen and outdoor space. But I’m curious on others thoughts on priorities when you have such a large rehab. I’m thinking a less expensive granite vs. quartz in kitchen, maybe not spending a lot on the showers/ glass and trying to finding cheaper cabinets for everything but the kitchen. 

Hi Alexandra - we are experts in this space and I would agree, bathrooms and kitchens don't provide a high ROI, its the common spaces, amenities, backyard and bedrooms. You want bathrooms and the kitchen to be presentable, but do not go over the top. Spend your money on built in bunk beds, a garage conversion to make it a 4 bed (we find 4 beds perform much better than 3 beds), and your entertainment spaces (living room, game room and backyard).

[Sarah Kensinger]

Mid-priced cabinets at Ikea are perfect for a STR and would help lower costs for you! Bathrooms are actually the best to put more money into then the kitchen, because people want a bathroom to feel fresh and clean. Whereas a kitchen, guests may barely even spend time in. Wayfair pro line has excellent light fixtures and other items, that would look great in a STR rehab and help keep costs down as well.

Look at your market and see what other STR have. Just because something worked for one host, doesn't mean it'll work for you since each market is different. And always think about your return on investment as you make decisions for rehab. In some cases, it may not help you make more as a STR, but you need to think about when you possibly sell the property and make good decisions for that time.

[Bonnie Low]

Definitely look at your market to see what the competition looks like. Almost everywhere, STRs are becoming extremely competitive. You have to rank at or near the top to stay booked. If your competition has granite counter tops, you need granite. If your competition has spa-like master bathrooms, you need spa-like master bathrooms. If the competition has hot tubs, you need a hot tub. More and more we're seeing a lot of this evolution spill over into MTRs as well, especially as jurisdictions have banned or restricted STRs and those owners pivot to the midterm rental space. Just really, really understand your market and your competition and make your decisions based on that or set your expectations accordingly.