I get this question a lot, and the short answer is that there is no short answer! Yes, I could throw out a number based on number of bedrooms and bathrooms, but ultimately I like to get more information before doing so because there are a LOT of factors that play into it and I never want to mislead anyone.
Your expenses will basically break down into four categories:
Design services: Obviously not everyone hires a designer, but I can reasonably assume that anyone contacting me about my services intends to! In most cases, this service includes creating a concept and/or theme, color palettes, layouts, and sourcing furnishings. In some cases it may also include design work related to renovations, depending on the current state of the property.
Trade labor: Again, this is not applicable to all situations, but if renovations or updating are required, you could be looking at hiring a contractor, plumber, dry wall installer and finisher, flooring installer, etc. Even when renovations are not involved, a professionally designed property will probably require the services of an electrician to replace light fixtures, a painter, and possibly a wallpaper hanger and/or mural artist. Keep in mind someone will also have to coordinate with these third parties to explain what needs to be done, schedule all the work, and sign off on it when completed.
Ordering, receiving and installation: This is a huge element that is typically overlooked when property owners are budgeting for their project. When the design plan is nailed down, someone has to order allllllll the things and track shipments. In many cases the property is unoccupied, which means that shipments cannot be sent there. Someone, whether the designer, a receiving warehouse, or the owner, has to accept the shipments at another address, inspect the merchandise, store it until install day, and then deliver it to the property. I can guarantee you that this takes a bazillion times longer than you might think. Once everything has been received, someone (usually the designer in full-service situations, or the owner in e-design situations) goes to the property and installs it. This can include a variety of tasks including arranging furniture and accessories, hanging artwork and window treatments, organizing kitchen supplies, etc.
Furnishings: This is the number that most property owners are thinking about when they ask what it costs to furnish a short term rental. But again, even if you plan to DIY the three other aspects listed above, cost of furnishings can vary greatly even for two properties with the same square footage and same number of bedrooms and bathrooms. If your property is in a resort town that caters to luxury travelers, you're going to need to invest in higher quality furnishings than you would if you're catering to 21 year olds looking to do a beach trip on the cheap. If you intend to put one king or queen bed in each bedroom, that math is different than if you intend to max out your capacity with 3 bunk beds in each room. And if you are doing the latter, you will also need to budget for sufficient seating in main areas like the dining room and living room. Other common spaces are also a big factor in total furnishing cost. Are you going to have a game room or a nice outdoor space? (Hint: The answer is "yes" if at all possible!) Things such as hot tubs, pool tables, grills, and durable patio furniture can add up quickly!
All that being said, I also completely understand the need for property owners to have a ballpark estimate in order to create a budget. I list a base price ($X and up per room) on my website, but I never guesstimate what trade labor may cost simply because different markets can vary so much. Even in my home market of Nashville, it may come down to whatever painter, electrician, etc. is available RIGHT NOW so that you can get your property listed ASAP, and their pricing may be very different than that of the person I used on the last property. Regarding actual furnishings (again, depending on factors listed above!) in my experience most rooms fall in the following range (again, this is for just the actual merchandise!). These numbers would of course be for a space that was DESIGNED and not just FURNISHED, so we are not talking a mash up of stuff from Marketplace and stuff you don't really want in your own home anymore.
Bedroom with a king or queen bed: $2,000- $5,000
This would include furniture, a NICE mattress, accessories, updated lighting, and art, as well as bedding. If you're using a management company, then your bedding may already be factored into the fee you pay them.
Living room: $2,000- $6,000
Again, this includes all furniture, accessories, updated lighting, and art. The sofa will be your biggest expense here. I like to make sure it's not only stylish but also comfortable, but some property owners prioritize cost over comfort and certainly that's their prerogative.
Dining room (assuming separate from Living Room): $1,200- $4,000
If your property is an open concept then you may not necessarily need everything you would in a separate room. But you do need to consider the capacity of your house. If you advertise that you can accommodate 12 people, you can't really get away for a table for 4!
Bathroom: $300- $2,000
If you're just accessorizing then the cost of the bathroom can be minimal, but I usually like to update lighting at the very least. Also, if you aren't working with a management company that supplies towels, you will want to purchase some nice ones. In some cases I also like to update plumbing fixtures because I think they make a huge difference in the vibe of a small space, so that will get you into the higher end of things.
A study by VRBO found that design is important in the booking decision of about 70% of their users, and a similar study by Air BnB found that 92% of people say that design influenced their overall experience staying at a property. So in the end, this is an investment, not an expense!
Comments