Putting together an Airbnb from scratch is not for the faint of heart—or wallet. When we talk about a “design budget,” we’re talking about all of it: the big-ticket couch, those little artisanal candles, fees for the handyman when your IKEA assembly skills go sideways, and even the hidden costs nobody remembers to budget for.
In this guide, we're assuming you're starting with an empty space, though the principles work just as well if you’re looking to give an existing property a facelift. We'll break down exactly what to budget, where to save, and where to invest to drive bookings and boost your bottom line.
Let’s dive in.
Are you spending too much on design… or not enough?
Here’s the reality: design is an investment —and running a STR is a business. That means every dollar you spend on design should be tracked, and you should expect to see a return on your investment for years to come.
Great design creates a flywheel:
Why Great Design Pays Off
Let’s talk numbers.
Studies show that STRs with cohesive, high-quality design can charge more per night, achieve higher occupancy rates, and enjoy stronger repeat bookings. In short, good design is not a cost—it’s a strategy.
So, If you’re thinking, “Can’t I just put in a Craigslist couch and call it a day?” Think again.
Think about it this way:
- Higher Rates (ADR): Well-designed spaces can command 15-30% higher rates than their poorly designed competition.
- Increased Occupancy: Rentals with appealing photos and high guest ratings get booked more and stay booked longer. Design is directly linked to positive reviews and guest experience.
- Better ROI: By investing strategically, you create a property that doesn’t just pay for itself but generates long-term value.
- Attracts High-Quality Guests: The right design choices appeal to discerning guests who respect the property, leave positive reviews, and become repeat visitors—reducing wear and tear and boosting overall property reputation.
In short, when done right, design is an investment that keeps paying off.
Step 1: Define Your Space & Audience
Start with the big picture, because no matter how pretty, a place needs a plan. Here’s your checklist:
- Who’s Your Ideal Guest? Business travelers? Families with kiddos? Bachelor/Bachelorette crews?
- Research Style Preferences: Dive into what aesthetics appeal to your target audience and fit your local market. Ex: mid-century modern, coastal, rustic, farmhouse…you get the picture.
- Pick Your Market Tier: Mid-range? High-end? Just don’t go bargain-basement—nobody’s out here designing their rental to scream “budget,” and cutting corners will only make it harder to compete.
With these basics in place, you’re ready to make some budgeting decisions.
Step 2: Get Real With Your Budget
Let’s cut to the chase on numbers. Design budgets are highly flexible, depending on your taste, market, and ambition:
- Tighter budget: $7–$10 per square foot
- Mid-range: Around $15 per square foot
- High-end: $15–$25 per square foot
So, the design budget for a 1,500-square-foot property could range from $10,500 to $37,500.
Pro tip: Luxury isn’t essential to launching a successful Airbnb; even well-chosen budget finds can make a big impact.
Check in: At this stage, you should:
- Know your target audience
- Have a style in mind that resonates with them
- Know if you’re shooting for Mid-range or High-end
- Have a rough budget range
Step 3: Track Your Budget (Use This Simple System)
Once you’ve established your budget range, it’s time to get granular. Create a Google Sheet with categories for each room in the property, then list each item, quantity, price, and links to the specific products you’ll need.
Pro Tip: Tracking costs item-by-item will help you stay on budget and give you flexibility to adjust as you go. This will also make shopping a breeze and help coordinate the delivery logistics.
Step 4: Where to Save and Where to Invest
Smart spending is the key to profitable design. Here’s where to focus your budget:
Where to Invest:
- Statement Furniture: Invest in standout pieces like the couch, coffee table, and dining table. These are the focal points of a room and need to be both durable and stylish.
- Quality Bedding and Mattresses: Guests remember a comfortable bed. Don’t skimp here.
- The Cover Photo: Choose a standout area—say, the living room or the patio—and invest in creating a “scroll-stopping” space that’ll appear in your listing’s Cover Photo. Those first five images are key to attracting bookings, so splurge strategically on this spot!
Where to Save:
- Accessories and Small Decor: These items enhance your space but don’t need to be pricey. Look for budget-friendly accessories that add character.
- Light Fixtures: Stylish yet affordable options are everywhere. If a fixture doesn’t define the room, save here.
- Secondhand Deals: Craigslist, Facebook Marketplace, and LetGo are treasure troves for budget finds. The key is to take secondhand deals to the next level using:
- DIY Magic: Sometimes old furniture just needs a little facelift. Reupholster vintage chairs, or give a tired sofa a fresh, sturdy fabric update.
- Repaint and Reimagine: A fresh coat of paint and some new hardware can make dated consoles and tables look brand new.
Step 5: Don't Forget Hidden Costs
Furniture and decor are just part of the design budget. Here are a few often-overlooked items that should be factored in:
- Travel Costs: If your property isn’t local, expect $1,000–$4,000 for travel, food, lodging, and vehicle rentals for setup. (Yes, this setup trip can cost more than your last vacation.)
- Setup Assistance: Need an extra set of hands? Search for local help on TaskRabbit, get a sense of hourly costs, and budget accordingly.
- Utility Deposits: Budget around $500 for initial utility deposits and set-up bills while the property’s offline and not yet profitable. After all, you need the lights on while you’re working!
- Legal Fees: Forming an LLC or handling property legalities can cost around $1,500, especially with an attorney’s help.
- Professional Photography: This one is non-negotiable. After all the design effort, don’t settle for phone pics. Professional photos = more clicks = more bookings. Budget $300–$500. This isn’t just an expense; it’s an investment in your future bookings.
Done right, your design budget isn’t just money spent; it’s an investment to make your property stand out, look sharp, and stay booked.
