How Much Does It Truly Cost to Furnish a New Airbnb

[Boris Mordkovich]

After furnishing quite a few properties for short-term rentals, we generally have a pretty good sense of how much to budget for furnishing whenever we’re putting together a budget for new properties. Being able to budget properly upfront helps reduce surprises down the road and ensures that you have a true, honest view of how much it’ll cost to get started.

I figured that this information may be helpful to others who are considering doing short-term rentals and also was curious to get a sense of how the numbers shake out for other people as well. It’s worth mentioning that the costs can vary wildly - depending on the type of property, target guest audience, and your personal style and preferences.

In our experience, a 4-bedroom, 2-bathroom property costs between $12,000 to $14,000 to furnish and setup from start to finish (including all furniture, decor, supplies and labor). This number has been surprisingly consistent across multiple properties.

To better understand the economics of setting up a property, let’s look at individual components:

• Bedroom Furniture - this can range anywhere from $1,000 to $2,000 per bedroom, depending on where you shop. A bedroom would typically include a bedframe, mattress, nightstand, desk, desk chair, another sitting surface, lighting and some decorative art. So, with a 4-bedroom property, you would typically spend around $6,000 on bedroom furniture (plus or minus $2K).
  
  
• Living Room Furniture - this can also add up quickly, so you can plan for $2,000 to cover the couch, coffee table, lighting and decorative art.
  
  
• Kitchen - with a dining table and chairs, you can usually plan for $500 to $1,000.
  
  
• Supplies - these begin to add up quickly due to volume. For example, for each bedroom, you would typically need to get at least 3 sets of sheets, 12 towels, 4 pillows, 1-2 blankets and a throw. This can easily end up being $300 per bedroom. Once you account for kitchen supplies and a never-ending list of small things around the house, you can easily allocate $2,000 to the overall supplies category.
  
  
• Appliances - if you’re lucky, your property already comes with everything included. If not, keep in mind that a washer and dryer will set you back between $1,000 to $1,500.
  
  
• Security - this typically includes things like outdoor web cams, new digital locks on the front doors, and perhaps keyed locks on the bedrooms. This can be between $500 to $1,000 depending on the brands you choose.
  
  
• Labor - if you’re treating this as an investment, you may want to hire a couple of people to help you move everything in and put all of the furniture together. On average, you’d need about $500 there.

Once you properly account for all of the things involved in setting up a new property, you can see where the $14,000 comes from.

Of course, if your property is smaller or you’re thrifty and have a bit of time to look for better deals, you could get it done for less. However, be careful not to underestimate it when you’re planning out your budget - it’s better to come in less than expected than over.

Lastly, it’s worth taking a moment to talk about where to get the furnishings in the first place.

We typically get more of our furnishings from Wayfair, Cost Plus World Market, Article.com and Amazon. We end up ordering 90-95% of it online, as it allows us to plan and execute more efficiently vs. trying to figure it out in person in the stores (especially during these times!).

We generally steer away from places like Ikea, as it’s a bit too well known, quality can vary widely and it’s harder to actually order from them online.

How about you? 

It’d be great to learn how others furnish their short-term rental properties! How much do you budget for them? What are your favorite sources for getting the furnishings?

[Loyd Tomlinson]

Boris-

Thanks for posting this resource! You wouldnt believe how many times i have tried to price out the cost to outfit an air bnb in order to factor it into the ROI. Have you found that design and quality of pieces you put in the bnb matter to the renters - whether it shows in the reviews or in the rental rate/price?

Thanks again for putting this together!

[Luke Carl]

Anywhere from $1000 to $100,000

[Collin H.]

We spend substantially more than this, as we are believers in buying high end furnishings, appliances, and decor.  We spent $4000 for a handmade hickory dining table and chairs alone.  But our guests appreciate the quality and treat our things with great care most of the time.

[Nathan Gesner]

It depends on the size of the unit, the quality of furnishings, whether you are buying brand new or used, in many other factors.

I'm not sure how useful your guide is for the average investor, but it's nice of you to take the time to share your experience with others.

[Boris Mordkovich]

@Loyd Tomlinson It's a good question. So here's our approach:

1. The difference between designing a space that's stylish vs. average/mediocre is not necessarily significant in terms of expenses. In other words, you don't necessarily HAVE to spend more -- as mediocre looking furniture from big box stores will oftentimes cost the same or more as nice looking, original pieces that you can find elsewhere. The main difference is just spending the time on it. In our case, my wife - who designs all of our spaces - will typically spend a couple of weeks designing, researching and selecting the pieces that we then order.

2. We usually do like to have 1-2 high end pieces in every room, as we find that it elevates the feel of the entire space. So if you get 90% of your stuff on Wayfair (low/medium cost), you may want to get 10% on Article, West Elm, CB2, and so on. That strikes a nice balance between keeping it cost effective but nice.

3. Lastly, yes - we certainly do find a correlation in nice design and reviews. But even more importantly, we focus a lot of presentation and photos upfront. So if you have a nice space and spend a bit on photography, it'll pop better on Airbnb / VRBO / Booking search results and should have a higher conversion rate as a result. 

One of the things we always try to keep in mind is that people book Airbnbs to get an experience that they can't quite get at home or at a traditional hotel. So having nice design, good furniture and some surprises (e.g. hammock in the living room) lends itself well to good photography and a listing that beats out the competition. 

Hope it helps!

[Paul Sandhu]

I do it for around $1000.  That's 4 appliances, 3 bedrooms and a living room.  I take a flatbed trailer and an appliance dolly to estate auctions and buy most everything I need from there.  Linens and utensils come from Wal Mart.  But my tenants are ruffians, they don't care if it's not brand new looking.  It's better than staying for months in the cheapest motel in this town.

[John Underwood]

As everyone else is saying it really depends on size of house, quality, new vs secondhand etc.

I would say at least 10k if you scrimp, 30k if you buy all new quality stuff.

[Collin H.]

Originally posted by @Paul Sandhu:

I do it for around $1000.  That's 4 appliances, 3 bedrooms and a living room.  I take a flatbed trailer and an appliance dolly to estate auctions and buy most everything I need from there.  Linens and utensils come from Wal Mart.  But my tenants are ruffians, they don't care if it's not brand new looking.  It's better than staying for months in the cheapest motel in this town.

 Don't forget your expense for the hot tub you made!  Can you explain that again?

[Collin H.]

Originally posted by @Boris Mordkovich:

@Loyd Tomlinson It's a good question. So here's our approach:

1. The difference between designing a space that's stylish vs. average/mediocre is not necessarily significant in terms of expenses. In other words, you don't necessarily HAVE to spend more -- as mediocre looking furniture from big box stores will oftentimes cost the same or more as nice looking, original pieces that you can find elsewhere. The main difference is just spending the time on it. In our case, my wife - who designs all of our spaces - will typically spend a couple of weeks designing, researching and selecting the pieces that we then order.

2. We usually do like to have 1-2 high end pieces in every room, as we find that it elevates the feel of the entire space. So if you get 90% of your stuff on Wayfair (low/medium cost), you may want to get 10% on Article, West Elm, CB2, and so on. That strikes a nice balance between keeping it cost effective but nice.

3. Lastly, yes - we certainly do find a correlation in nice design and reviews. But even more importantly, we focus a lot of presentation and photos upfront. So if you have a nice space and spend a bit on photography, it'll pop better on Airbnb / VRBO / Booking search results and should have a higher conversion rate as a result. 

One of the things we always try to keep in mind is that people book Airbnbs to get an experience that they can't quite get at home or at a traditional hotel. So having nice design, good furniture and some surprises (e.g. hammock in the living room) lends itself well to good photography and a listing that beats out the competition. 

Hope it helps!

Sounds like you've found a plan that works for you!

[Justin Gottuso]

@Boris Mordkovich

Super helpful and accurate based on my experience as an Airbnb host a coupe years ago. In hindsight, it is a TON of work and takes a lot of start up money that first year. Based on all our expenses up front plus ongoing supplies we broke even the first year, and we were 95% booked all year. Can’t imagine starting out now with all the expenses, it wouldn’t make sense.

[Marlen Weber]

It depends on how high-end of how affordable you want the pieces to be. You can even do a mixture of both and invest on the pieces and appliances that matter most. Ikea tends to be a go-to for Airbnb owners. @Boris Mordkovich

[Joe Splitrock]

@Boris Mordkovich like anything in real estate the answer is it depends. I had a guy on Facebook tell me if you spend more than $1000 TOTAL to furnish a STR, you are doing it wrong. He claimed to furnish a 4 or 5 bedroom million dollar house in Oregon for $1000. He never said how, but obviously he was buying used stuff.

We just did a two bedroom house and the cost was around $7,000, which was all new accept the kitchen table. Based on that your numbers seem reasonable.

Part of this comes down to quality. Some of the short term rentals out there are pretty bad. I have stayed in some with 20 year old beds, horrible couches with slip covers, etc. People doing the expensive cabins in the mountain or on a lake will usually do it right and spend some money.

[Michael Elefante]

I think it's market dependent too.. If you are catering towards a mix of quick weekend trips or business travel, you can probably go on the cheaper side.. If you want to really stand out in a hot, competitive market, catering towards vacations or special occasions - spending a few extra bucks in the rooms or outdoor spaces that will be your first few key photos online - those are your money shots and will ultimately get you more clicks, bookings, better reviews, higher ranking on Airbnb / VRBO and coming full circle - ultimately you'll be able to charge more with the higher demand and occupancy goes up = more money in your pocket.. 

I personally budget for $5k/# of Bedrooms as a ballpark. So for a 4 BR house with some outdoor space, I would budget for around $20k - this includes common spaces like kitchen, living room, etc. It will vary from property to property... Again, if it's a special occasion, people are willing to spend the extra money on a place they are emotionally drawn to. It's worth spending the extra $5-10k on furnishings if it means you could go from grossing $50k/year to $85k/year. 

We try and have one or two things with each property that really stand out. For example, in Nashville, we put in a custom interactive mural on our living room wall - catering towards the bachelorette crowds who typically spend more money for a once in a lifetime trip. We are able to capture $200-400 higher per night on the weekends than the surrounding Airbnbs because of that mural. This will bring our annual revenue up from $75k to above $90k/year.. People want to post on instagram and show everybody out there how great of a time they're having. Again - it's an emotional decision IMO, and it's worth spending the extra money up front if it means higher future earnings. Just my perspective.. 

[Nikita Herrod]

@Boris Mordkovich

I have also furnished a 4 bed 2 bath home for short term rental and spent the same amount you quoted. I was amazed by how little things kept adding up.

In addition, I'm finding that replacement costs keep raising that total as well carpet cleaning, replacement towels, removing the smoke smell from people who break the house rule of not smoking. Trash bags, dish soap, etc. I have also had some big repairs like electric panel upgrades to accommodate the higher number and usage of electrical devices.

It's important to note that a furnishing is just the beginning. Budgeting for maintenance is so important.

I'm now using the Capex and vacancy recommendation of 10% by biggerpockets calculator from every payout to account for the many things that add extra cost.

Good luck to all. Go forward and prosper!

Nikita

[Paul Sandhu]

Originally posted by @Collin H.:

 Don't forget your expense for the hot tub you made!  Can you explain that again?

 Hot tub. 

The 110 gallon tub was free, some renters left it behind.

The heat exchanger shell was free, it was a 30 gallon water storage tank for an RV.

The pump and hose I had sitting around.

Fire wood is free.

Most of the piping for the exchanger was stuff I had sitting around, but paid about $50 for 50 feet of pipe.

Welding consumables, about $10.

With a good fire, the water delta is about 30 degrees.  I can bring the hot tub up to 100 degrees in about 90 minutes.

The can is for relaxing.  The Glock is for taking pot shots at any creatures that wander by.  Mostly squirrels, you can see my squirrel launcher in the background.  I modified the arm of a skeet thrower to keep a squirrel on the arm when it is released.

[Collin H.]

Good work Paul. I would hope that some of these other STR owners are inspired by this and make their own hot tubs. Squirrel launcher is a very nice added touch, too. Guests appreciate these sorts of amenities.

Thanks for sharing.

[Anand S.]

This is pretty spot on. Thanks for the detailed posting.

[Paul Sandhu]

Originally posted by @Anand S.:

This is pretty spot on. Thanks for the detailed posting.

 Post a pic of your outdoor hot tub once you fabricate it.  Thanks.

[JJ P.]

I think that no matter how much a place costs on a per night basis, people want their vacation rental to be nice.  They are, after all, on vacation.  

 What ever your price point is, make the surroundings clean, tidy and inviting. Make sure it smells good in there.  Pick nice colors for the pillows, rugs, bedspreads, decor items and art work so that the room is not boring.   Add a little pizazz where you can.  Don't let the potted plants die.  Replace worn out pillows, slip covers, dishtowels, etc.   Shop at Ross or Home Goods and there are plenty of great, hip things at bargain prices.  The prices are low enough to be able to spend again if you need to replace things in a few years.  

 Some rental rooms can be dire.   Don't be that guy.  

[Georgeanna Tracey Newmones]

Originally posted by @Collin H.:

We spend substantially more than this, as we are believers in buying high end furnishings, appliances, and decor.  We spent $4000 for a handmade hickory dining table and chairs alone.  But our guests appreciate the quality and treat our things with great care most of the time.

[Georgeanna Tracey Newmones]

Well said and I certainly agree. I enjoy going to high-end str and will pay extra for quality furnishing and linens. I guess it depends on who your market is and the clients you serve. 

[Sheeva R.]

Question - does nice stuff hold on for longer? My realtor mentioned not wanting to put nice stuff in because it will inevitably get destroyed and you want to change everything out every 3 years. Thoughts?

[Edward Hernandez]

It all depends on the clientele that you generally looking for and the location of your property. I do believe that the furnishings should match the house so it may not be wise to put $2,000 tires on an old Toyota Camry. 

Basic rules: You want the house to look nice, be clean, and smell good. Don't break the bank of decorations. Nobody really remembers the decor but the decorations should look good and match the design on the room.  I would consider spending extra money on the bed and pillows, bathroom and kitchen stuff. Again, it all depends on your general cliental. If you anticipate people using the kitchen often then you can buy some nice stuff without breaking the bank. Ikea is my friend. 

[Marek Ma]

Wow, where are you shopping on Wayfair? I can't fathom doing it for that little. Couches for under $1k all have reviews that they sag in no time, have frames that break, etc. 

We did a house in late 2021 that cost us about $25k in total (3bed/2bath), and are doing a house now that will be substantially more. Just to replace a worn out kitchen counter is running minimum $6k (for laminate!!) or $10k for lower quality quartz. We DIY all we can - paint the cabinets instead of replacing, even paint floor tile to spruce up bathrooms, etc. But labor right now for the things we can't do - yikes! 

Our goal is to make up all start-up costs by 1 year. We'll hit it for that $25k price tag on house #1 (in 11 months, at current trajectory). That one was a happy accident, but now I use that on purpose - my start-up budget needs to be what I expect to pull in during year 1 (after utilities/taxes/upkeep/etc). That way, the quality of things match the estimated amount I think we'll charge for the site.

[Colleen F.]

@Boris Mordkovich Thanks for the estimate. I can't really say what it would cost now but we did beach/student so we shopped secondhand. Your online furnishing mode is probably great for alot of stuff but it is generic. I think some of the people who are spending more are doing so to customize the destination experience. A STR should not look like a hotel room anywhere IMHO.
One of the pluses for using a STR rental include it looks like the destination experience you want to create for your family.   You can do that inexpensively or not.  Do you customize to the destination?

Another thing is how long do the furnishing last for a typical STR?  For example that $1200 couch?