With the explosion of vacation rental properties in the Branson, Missouri, area, this is usually the first question I hear from investors – and rightfully so. Buying a short-term rental property is a business decision. To make a great profit, you must consider not only the purchase price of the building but also the cost to properly furnish and equip this “home away from home.” There’s not a “one size fits all” dollar amount. But I have a special process to estimate the investment budget for each interior design client.
Three important questions I ask at the start of each vacation rental interior design project:
When we talk about budgeting short-term rental property “furnishings” the features we include are:
The first question is key when assessing how much to spend on furnishings. Not all vacation rentals require the same type or level of furnishings.
Answering these questions will help you assess whether your vacation rental needs to be furnished at a Basic Level, Mid-Tier Level, or Luxury Level.
The second question is critical since square footage is a determining factor in all real estate investing. Some designers may use a flat fee pricing model, or per bedroom pricing model, but in my experience, the square footage pricing model is the most accurate in determining actual costs.
The vacation rental budgeting model I use at Branson Upstaging ranges from:
Using the square footage of the property and multiplying that by the level of investment (basic, mid-tier, or lux) will give us the base to factor furniture budget.
When I work with clients, my square footage pricing model only applies to essential furnishings in the bedrooms and common rooms. You need to add separate line items for kitchen and bathroom essentials (except for the dinning table), as these prices are based on your max guest occupancy.
For extra character and appeal you may want to add amenities like gaming tables, a hot tub, or a fire pit. These items will also be added as separate line items in your budget.
You may be great at choosing great investment properties, but do you have the time and talent needed to prepare it for listing on Airbnb or Vrbo? Consider these details:
If you live in the same area as your vacation rental property – and have the time to handle all the ordering, logistics, and installation – then you can budget based solely on the cost of goods needed.
But if you live far away (or don’t have time to be on-site), you must also factor in design and project management costs. These will vary based on the person or company you hire, so be sure to find out those fees up front, and add them to the cost of your total investment.
Proper planning will help you manage the investment and minimize unwanted surprises!
I am a certified Short-term Rental Stylist. You can book a
free discovery call with me to learn how Branson Upstaging can help you find your property’s full potential for success in the vacation rental business.
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Holly Jones with Branson Upstaging specializes in residential interior design and vacation rental interior design. She works with local clients in the greater Springfield-Branson MO area as well as remote clients around the United States.