Investor · West Palm Beach, FL · Member since 2024 · 90 posts · 47 votes
To ensure your STR performs well, do your kitchen and bathrooms need to be fully renovated and updated?
We’re probably the only designers and contractors who would say no—unless you’re in the luxury STR space.
Why?
As long as your kitchen and bathrooms are in good condition and functional, there's no significant ROI in fully renovating them. Instead, invest in areas with a higher ROI, like backyard amenities, game rooms, and standout design.
Most of our clients refresh these spaces with a new coat of cabinet paint, updated flooring, and small changes that make a big impact. Take a look:
Rental Property Investor · Phoenix, AZ and Rehoboth Beach DE · Member since 2019 · 1k+ posts · 1k+ votes
2y
I agree that totally remodeled kitchens aren't always necessary. My own STR is an example. It really needs new cabinets, but guests think the kitchen is great because they have a new coat of paint, and already had granite counters. Re your example #3, that kitchen has new cabinets, countertop, flooring, stove, microwave, island built, all new lighting, a half wall removed. In fact, the only thing original thing for sure is the fridge. So that is a complete remodel.
My thought is that the 2 before and afters above don't look much different . . . Looks like a waste of money for a marginal improvement. Especially on the right, where I wouldn't call those outdated finishes and the colors look nice, maybe just needs better lighting. I would also rather have upper cabinets than floating shelves, except for maybe in a compact unit with very outdated cabinets.
That said what you are saying seems to be echoed elsewhere and fits how I would look for properties to rent. I would much rather have a place with a great outdoor space or game room and an OK kitchen than the opposite, especially since a lot of meals are eaten out anyway. OTOH bathroom renovations aren't too expensive, and I am always a fan of a larger walk in shower stall.
I'm sure it does . . . but it's not because of the kitchen reno. I can see either a pool or a shuffleboard table in the background, and I imagine it is in a good-to-great location.
I am simply not seeing why any of those would be considered smart design decisions. They already had what look like good quality cabinets with a nice subtle finish. If anything the newer wood finishes are more outdated. The old backsplash looks good and all the colors worked together. Only thing I'm not sure of is the old countertop material, but it does look look in the photo.
What exactly am I missing? Not trying to be mean here but kitchen rehab #2 is not making sense to me at all. Rehab 1 is marginally better, and 3 looks pretty good.
Austin, TX · Member since 2019 · 5k+ posts · 5k+ votes
2y
Your upgrades look very attractive.
For rental though, I would have not spent a nickel changing either of those kitchens.
White cabinets are going to show a lot more grime at turn time then the brown ones will.
I would simply have left a welcome kit for each renter that included some shelf paper, toilet paper, and a new milky white shower curtain, plus a small bag of Purina if they have a pet.
The shower curtain because sometimes renters don't have one when they move in and they want to take a shower after moving their stuff in and flood the floor until they get a shower curtain. A couple of dollars at the dollar store for a cheapy milky white curtain prevents this.
Back to the kitchens, I especially like the (before) galley kitchen with the tile floor, and if there was a door opening at both ends at ADA specified widths that would be a nice feature too.
Investor · West Palm Beach, FL · Member since 2024 · 90 posts · 47 votes
2y
The point is, in these types of markets, original or slightly enhanced kitchens are adequate. The majority of the budgets were spent on design, furnishings, and amenities, so in return, these STRs perform very well, actually exceeding revenue projections. Many new investors think an overhaul is needed in kitchens and bathrooms and we haven't seen the need - based on data. These pictures are not listing pictures.
For rental though, I would have not spent a nickel changing either of those kitchens.
White cabinets are going to show a lot more grime at turn time then the brown ones will.
I would simply have left a welcome kit for each renter that included some shelf paper, toilet paper, and a new milky white shower curtain, plus a small bag of Purina if they have a pet.
The shower curtain because sometimes renters don't have one when they move in and they want to take a shower after moving their stuff in and flood the floor until they get a shower curtain. A couple of dollars at the dollar store for a cheapy milky white curtain prevents this.
Back to the kitchens, I especially like the (before) galley kitchen with the tile floor, and if there was a door opening at both ends at ADA specified widths that would be a nice feature too.
Good Luck!
We work within our clients budgets and ultimately want they want as well! It's a balancing act where we guide our clients as best we can but ultimately they make the final decision.
Rental Property Investor · Phoenix, AZ and Rehoboth Beach DE · Member since 2019 · 1k+ posts · 1k+ votes
2y
I agree that totally remodeled kitchens aren't always necessary. My own STR is an example. It really needs new cabinets, but guests think the kitchen is great because they have a new coat of paint, and already had granite counters. Re your example #3, that kitchen has new cabinets, countertop, flooring, stove, microwave, island built, all new lighting, a half wall removed. In fact, the only thing original thing for sure is the fridge. So that is a complete remodel.
Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
2y
Each property/owner situation and unique but there are 2 general thoughts. The market is competitive in most markets, so the best properties win. If you have 2 very similar houses priced the same on the same street the nicer one will win. However, in that scenario is you can compete on price even 5% cheaper you may win.
In FL - Clean and comfortable interiors with awesome backyards do much better than awesome interiors with blah exteriors.
Obviously to have it all is the best, but dollar for dollar exterior amenities in FL have a higher ROI.
Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
2y
Most of the STRs that I've owned - or stayed in, did not have freshly remodeled baths and kitchens. Many actually had older, basic, bery avergae both. But they were functional and I didn't care. I guess if I were staying in a top dollar place, I would expect more fanciness, but I don't stay in those places.
Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
2y
Personally I don't really care for the upgrades. Some lose their charm and that all open shelf thing is annoying.
I don't think any of the changes would increase the nightly rate in and of themselves.
We have a well stocked but modest kitchen that plain works. Natural cabinets with white appliances and a white Corian countertop. People are here for the lake and bike trail.
When you are in a less than optimal area, then upgrading the interior makes a bit more sense. If you have a ton of things to do (like the lake, amusement parks etc), then a good kitchen is fine. It doesn't need to be super high style.
Once again it comes back to..."Location, Location, Location."