When setting up your short-term rental (STR), one of the most important – and sometimes overlooked – decisions you’ll make is how many guests your property can (and should) accommodate overnight. On the surface, it might seem simple: just count the beds and list the maximum number of people who can fit. But in practice, it’s a balancing act between maximizing income potential and ensuring guest comfort, all while protecting your property from unnecessary wear and tear.
Let’s break it down.
Why Guest Capacity Matters
- Revenue potential: More beds usually mean higher booking rates, especially for larger families or groups of friends traveling together.
- Guest comfort: An overcrowded space leads to poor reviews. Guests expect to have enough room to eat, relax, and sleep without feeling like sardines.
- Wear and tear: More guests = more utilities, faster furniture breakdown, and a higher chance of accidents or damages.
- Platform algorithms: Airbnb and Vrbo search filters often prioritize properties based on guest capacity: you may show up in more searches if your place can host larger groups.
Maximizing Sleeping Spaces Without Compromising Comfort
If your property has limited bedrooms, creativity is your best friend. Here are some smart strategies:
1. Bunk Beds for Flexibility
Bunk beds aren’t just for kids anymore. With modern designs, they can comfortably sleep adults too.
- Best picks:
- Full over Full
- Twin over Queen
- Why it works: An adult family can comfortably use a bunk room if the bottom bunk is a queen. One of my favorite setups? A queen bottom with a twin or full top. It works for kids and adults.
2. Pull-Out Couches
A pull-out sleeper sofa in the living room doubles your flexibility. It’s perfect for groups traveling with kids or when family members don’t mind sharing space. In my opinion this isn’t ideal, especially when I’m booking for my own family. If a property lists 4 beds and they are all Queen, I still double check because I don’t want one of us to end up in the living room without privacy.
3. Day Beds with Trundles
Day beds in a game room, office, or loft provide extra beds that don’t scream “bunkhouse.” With a trundle underneath, you’ve got two sleeping spots that take up minimal space.
4. Converted Nooks or Closets
If you’ve got an odd alcove or oversized closet, consider converting it into a small sleeping nook with a twin bed or custom-built bunk. Guests love unique spaces like these.
Earlier this year I stayed in a beautiful waterfront house in Galveston, TX. One of the primary bedroom closets was converted to a built-in triple twin bunk. So clever! It wouldn’t be very comfortable for an adult, but I can see it being a big appeal to kids!
The Golden Rule: Match Amenities to Sleeping Capacity
It’s not enough to simply add beds. If you advertise space for 12 guests, your property should comfortably host 12 people beyond bedtime. Ask yourself:
- Dining: Is there seating for everyone at the table? If not, add benches or extendable tables.
- Dishes: At minimum, one place setting per guest. Running out of forks isn’t a good look.
- Living area: Enough couches, chairs, or floor cushions for everyone to relax together.
- Bathrooms: Consider guest load. A 4-bedroom house with one bathroom won’t cut it for 12 people.
Safety First, Especially for Families
If your STR is family-friendly, make sure sleeping arrangements and amenities reflect that:
- Childproofing: Sturdy bunk beds with rails, outlet covers, baby gates.
- Cribs or Pack ‘n Plays: Airbnb doesn’t count children under 2 years old toward guest capacity, so plan accordingly.
- Honest listing notes: Clearly state whether your property is suitable (or not) for young kids.
To Charge or Not to Charge for Extra Guests
This is where strategy comes in. Many hosts cap their base price at a certain guest number, then add an additional per-person fee.
Example:
- Property accommodates 16 people.
- Base rate includes 8 guests.
- $50 per guest per night beyond 8.
This method makes your listing appealing for smaller groups (who won’t feel like they’re overpaying), while still capturing revenue from larger groups who bring the extra wear and tear.
Balancing Comfort, Value, and Income
When deciding your maximum capacity, consider these key questions:
- Does the number of beds match the number of dining seats and dishes?
- Will the bathrooms handle the guest capacity?
- Are you charging appropriately for additional wear and tear?
- Would you feel comfortable staying in your own property with that many people?
Real-Life Example
Last week I was looking at a 4-bedroom home for an adult family trip. One of the bedrooms had twin beds, which is great for kids, and not so much for four full-sized adults. If even one of those twins had been swapped for a full or queen, the space would have worked perfectly for both scenarios. This flexibility can be the difference between landing a booking and losing it to a competitor.
Pro Tip for STR Hosts: Before updating your Airbnb listing, spend one night in your rental as if you were a guest. Invite friends or family to “fill” the beds and test whether the space still feels comfortable. You’ll quickly spot areas that need adjusting (before your guests do!)
How Adding Sleeping Capacity Affects Revenue (With Real Examples)
When you add beds (bunks, pull-outs, Murphy beds) you don’t just change the layout, you change the economics. Below are simple formulas and worked examples that show how to think about the revenue upside, the added costs (cleaning, utilities, wear-and-tear), and how long it takes to recoup the investment.
Quick formulas
- Extra revenue per night = Additional guest fee per night × average additional guests per night
- Extra revenue per month = Extra revenue per night × average nights booked per month
- Extra variable cost per night = (Extra cleaning cost per booking / avg nights per booking) + utility cost per guest per night
- Net extra per night = Extra revenue per night − Extra variable cost per night
- Payback period (months) = Cost of addition ÷ (Net extra per month)
Example assumptions I’ll use for the worked examples
(These are conservative defaults you can swap for your market.)
- Base occupancy = 65% (about 20 nights/month on average)
- Base nightly rates: 1-bed = $120; 3-bed = $280
- Cleaning fee (one-time per stay): 1-bed = $50; 3-bed = $100
- Extra guest fee (per additional guest per night): 1-bed = $25; 3-bed = $35
- Extra cleaning/turnover cost per additional guest per stay = $10 (1-bed) / $15 (3-bed)
- Utility incremental cost per extra guest per night = $2 (1-bed) / $3 (3-bed)
- Typical add-on costs:
- Bunk (good quality): $600
- Pull-out sofa (mid-range): $800
- Murphy bed: $1,200
- Murphy installation (labor): $300–$800 (already included in price above if pre-built)
Scenario A — Transforming a 1-Bedroom into a 3-Sleeper (Maximizing a Small Footprint)
Objective: Turn a 1-bed apartment (sleeping 2) into a flexible 3-sleeper or even 4-sleeper without changing the footprint.
Options:
- Queen bed + add a twin bunk or daybed with trundle in a nook.
- Cost: twin-over-queen bunk ≈ $900 (higher-quality frame + mattress)
- Use a pull-out couch or Murphy bed in the living room.
- Cost: pull-out sofa ≈ $800
Revenue math — option 1 (add one extra guest capacity)
- Extra guest fee: $25/night
- Average extra guests per booked night: assume +0.6 (not every booking uses the extra bed)
- Extra revenue per night = $25 × 0.6 = $15/night
- Extra revenue per month (20 nights booked) = $15 × 20 = $300/month
Costs
- Extra variable cost per night = (extra cleaning per stay / avg nights per stay) + utility cost
- Assume avg nights per stay = 3; extra cleaning per stay $10 → $10/3 ≈ $3.33/night
- Utility cost = $2/night
- Extra variable cost per night ≈ $5.33
Net extra per night = $15 − $5.33 = $9.67
Net extra per month = $9.67 × 20 = $193.40
Payback period (bunk cost $900) = $900 ÷ $193.40 ≈ 4.7 months
Takeaway: Adding one realistic, comfortable extra guest option (twin bunk or trundle) can pay for itself in 4–6 months in many markets.
Scenario B — Optimizing a 3-Bedroom Property (Maximizing Group Revenue)
Objective: Increase sleeping flexibility from 6 adults to 8–10 guests by using bunk rooms, a pull-out in the den, and a Murphy bed in a den.
Typical configuration pre-change: 3 bedrooms with queen beds = sleeps 6
Possible new config:
- Bedroom 1: queen (2)
- Bedroom 2: queen/twin bunk (3)
- Bedroom 3: queen + daybed trundle (3)
- Den (no closet): Murphy bed or pull-out couch (2)
Costs to add:
- Queen/twin bunk = $700
- Daybed w/ trundle = $700
- Murphy bed (quality) = $1,200
- Total cost ≈ $2,600
Revenue math (incremental capacity from 6 → 10 usable sleeping spots)
- Extra guest fee: $35/night
- Extra potential guests booked nightly: conservatively, +1.6 average (because large groups don’t book every night at capacity)
- Extra revenue per night = $35 × 1.6 = $56/night
- Extra revenue per month (20 booked nights) = $56 × 20 = $1,120/month
Costs
- Extra cleaning charge per added guest per stay assumed $15; avg stay = 3 nights → $15/3 = $5/night
- Utility incremental per guest per night = $3
- Extra variable cost per night ≈ $8
Net extra per night = $56 − $8 = $48/night
Net extra per month = $48 × 20 = $960/month
Payback period = $2,600 ÷ $960 ≈ 2.7 months
Takeaway: In larger homes used for groups, the ROI on adding durable additional beds (bunks, trundles, Murphy) can be very fast (often under 4 months) because per-night extra fees compound quickly for group bookings.
Using a Den (No Closet) as Flexible Space: Practical Tips & Math
A den is often an underused asset. Convert it into a flexible “bonus” sleeping area by choosing one of the following based on budget and desired guest comfort:
- Pull-out couch ($800) — low cost, doubles as living seating. Good for occasional adults or kids.
- Murphy bed with desk combo ($1,200–$1,800) — higher cost, high comfort. Converts an office into a full bedroom at night.
- Daybed with trundle ($700) — great for kids or 1–2 adults; feels homey.
Practical revenue math (Murphy vs Pull-out)
- Murphy: assume +1.4 average extra guests per night × $35 = $49/night extra revenue
- Pull-out: assume +0.8 average extra guests per night × $35 = $28/night extra revenue
Net extra per night after $8 incremental costs:
- Murphy net ≈ $41/night → $820/month → payback (cost $1,500) ≈ 1.8 months
- Pull-out net ≈ $20/night → $400/month → payback (cost $800) ≈ 2 months
Interpretation: Murphy beds cost more but offer higher nightly usage and comfort (often converts higher-paying adult groups). Pull-outs are budget-friendly and still profitable.
Non-Math Considerations That Impact the Numbers
- Local demand & comps: A market that regularly books large groups will push faster ROI.
- Listing accuracy & review risk: If the den feels too cramped, negative reviews will cut occupancy and cancel math. Comfort still matters.
- Insurability & safety: Bunks for adults should be sturdy; fire code and exit routes matter. Always be honest in the listing (i.e., “lower bunk queen; upper bunk twin”).
- Cleaning logistics: More beds can mean longer turnovers; make sure your cleaner’s schedule can scale or you’ll lose nights.
Final Rules of Thumb
- 1–2 bed properties: Add modest, comfortable sleeping options (trundle, twin-over-queen) first. ROI is usually quick.
- 3+ bed properties: Invest in durable solutions (full/full bunks, Murphy beds), especially if your market has group demand.
- Den conversions: Murphy = premium product; pull-out = good value. Choose based on likely guest mix (families vs. adults).
- Always model conservatively: Use a modest “extra guests used per night” factor (0.6–1.6 in examples) unless you have hard booking data.
- Protect guest comfort: Never sacrifice circulation, seating, or dining capacity just to advertise a higher guest count. Overcrowding kills repeat business.
Final Thoughts
The key to maximizing your STR’s overnight capacity is balance. Yes, more beds can mean more bookings, but only if you’ve also designed your property to comfortably accommodate that many people during meals, downtime, and mornings when everyone’s fighting over the bathroom.
Think like a guest, plan like a host, and remember: happy guests leave glowing reviews, and glowing reviews equal more bookings. I’d love to hear some of the creative ways you’ve increased your guest count. Leave a comment below!
