Best Renovations for Your Short-Term Rental: What to Upgrade for Higher Rates & ROI

Now that I also own a short-term rental, I find myself applying those same principles, but with a slightly different lens. While sellers usually renovate for buyers, STR owners renovate for guests. And while some upgrades are cosmetic luxuries, others are critical: safety, comfort, and durability always come first.

So if you’re thinking, “I want to make some updates to my Airbnb or vacation rental, but I don’t know where to start”, here’s how I recommend approaching your renovation wishlist, from safety essentials to splurge-worthy upgrades.

First Things First: Safety & Deferred Maintenance

Before you even think about trendy tile or luxury throw pillows, take a hard look at your property’s bones:

• Is your water heater in good condition?
• Are smoke and CO detectors working and up-to-date?
• Any leaky faucets, soft floorboards, or drafty windows?
• Does the deck need sealing?
• Are there exposed wires or outdated electrical outlets?

I know, this part isn’t sexy. But guests notice if something feels off or unsafe. And more importantly, ignoring deferred maintenance can lead to negative reviews, costly repairs, and even legal liability. Always prioritize safety and function before investing in aesthetics.

Renovations & Upgrades by Budget Tier

Let’s break this down into actionable ideas based on what you’re ready to spend:

Budget: $50 – $100

Check out my other blog post, “5 Amazon Finds Under $50 That Guests (and You!) Will Love; I Use All of These in My Airbnb and Home“

Budget: $100 – $500

Great for quick wins and light facelifts.

• Swap out outdated light fixtures for modern, energy-efficient ones. Instant upgrade to mood and perception.
• Add weather stripping or blackout curtains to improve comfort and energy efficiency.
• Install smart locks or keypad entry for guest convenience and host security.
• Repaint high-traffic walls or touch up baseboards. Clean, fresh paint goes a long way.
• Buy quality mattress protectors and fresh pillows: comfort counts and these small touches matter.
• Upgrade your welcome basket to include locally loved snacks or a QR code to your guidebook.

ROI? Yes. These upgrades won’t necessarily let you raise your nightly rate, but they can boost 5-star reviews and reduce guest questions or complaints.

Budget: $500 – $1,000

For more impactful updates that improve both design and guest experience.

• Replace dated faucets or cabinet hardware for a modern kitchen or bath vibe.
• Add an accent wall with peel-and-stick wallpaper: a renter-friendly way to add “wow” to your listing photos.
• Upgrade to higher thread count sheets, plush towels, and layered bedding for a luxury feel.
• Install a statement mirror or entry bench: great for guest convenience and staging.
• Create a dedicated workspace with a desk, ergonomic chair, and fast Wi-Fi, especially if you’re in a workcation market.

ROI? Likely. These types of updates often allow for a small bump in nightly rate and help you stand out from similar listings.

Budget: $1,000 – $5,000

For structural, functional, or multi-room upgrades that can change your value proposition.

• Replace old carpet with LVP (luxury vinyl plank) flooring: It’s waterproof, modern, and pet/kid-friendly.
• Remodel a dated bathroom vanity area or tile the shower surround.
• Create a coffee station with a high-end machine and stylish barware: something guests will photograph and rave about.
• Upgrade major appliances: (especially if you’re STR is family-friendly or long-stay focused).
• Build a fire pit area or install a pergola in the backyard: amazing ROI if your property has outdoor potential.

ROI? Definitely. These upgrades can help increase your nightly rate and your resale value.

Budget: $5,000+

These are your larger investments, often with long-term return in mind.

• Kitchen renovation: Even a small galley kitchen can be transformed with new cabinets, countertops, and open shelving.
• Bathroom gut job: Full remodel with walk-in shower, double vanity, modern tile. This pays off both in nightly rate and resale.
• Add a hot tub: One of the top amenities guests filter for on Airbnb, especially in mountain or winter destinations.
• Convert unused space into a bedroom or media room: More sleeping capacity = more nightly income.

ROI? High, if done with intention. These projects must align with your location, guest expectations, and future resale plans. Not every property needs a hot tub, but the right one might thrive because of it.

Renovations to Avoid

Not every upgrade pays off. Some might even backfire:

Wall-to-wall carpet: Hard to keep clean and guests with allergies will notice. Go for LVP or tile instead.
Over-customized decor: That Moroccan-style arched doorway might be beautiful but could narrow your resale pool.
Luxury upgrades in budget markets: If you’re in a $90/night market, a $7,000 bathroom remodel might not pay off. Know your guest demographic.
Ultra high-maintenance materials: Marble countertops? Gorgeous, but high-maintenance. Guests don’t baby things the way owners do.

Final Thoughts: Always Ask Yourself…

• Will this help increase my nightly rate?
• Will this reduce cleaning/maintenance headaches?
• Will this add resale value or broaden my buyer pool later?
• Does it enhance guest comfort or create a 5-star experience?

My personal approach is to invest wisely in durability, comfort, and a little bit of “wow.” I keep my guests’ needs front and center, and I never forget the big picture. After all, every STR property is also an asset. Renovate like both a host and a homeowner.

Thinking of making changes to your short-term rental? Leave a comment below or connect with me on social; I’d love to hear what you’re planning or help you brainstorm!

– KP