Airbnb Property Renovations: Which Upgrades Help Owners Increase Nightly Rates?

One challenge of owning a short-term rental property is deciding which renovations are worth your money. Unlike a standard home renovation, which focuses on what you need from the space, a short-term rental renovation is a cost-benefit decision.

Many Airbnb property renovations could improve your property’s comfort or aesthetics…but you don’t have unlimited cash flow. So which Airbnb renovations are likely to help you increase your nightly rates and scale revenue year on year?

Your guests choose to stay at your property for a specific reason. Perhaps it’s the location, certain amenities you offer, or the price you currently list at. Overall, guests choose where they stay based on what they expect. They rate properties based on how comfortable their stay was and how much value they feel they received for the price.

That means it’s worth prioritising renovations your guests will notice and benefit from immediately. Cover the essentials, like reliable hot water pressure, and the aesthetic standouts that get mentioned in reviews, like a beautifully tiled walk-in shower.

Every renovation has a cost, so spend where your guests will respond, not where you’d personally spend. That, in turn, helps you raise your nightly rates without pricing yourself out of your ideal guest bracket.

The upgrades that pay off most are the ones that improve your listing photos or the guest experience straight away. Both support a higher nightly rate that still feels worthwhile to the guest.

The kitchen.

A modern, well-equipped kitchen is central to a high-value property. Airbnb property renovations often focus on the kitchen because guests booking short-term rentals (especially families and anyone staying a week or more) care a lot about its quality.

Kitchens come up often in reviews; they are often one of the first photographs in a listing, and a better-equipped kitchen helps support your nightly rate.

Even small Airbnb kitchen renovations can go a long way. Consider replacing your benchtops, upgrading your appliances, or repainting your cabinets for an immediate boost.

The bathrooms.

For most guests, the bathroom is the home’s sanctuary. Guests travelling for pleasure want a luxurious space to retreat to when they wind down for the day, while families and guests staying a week or more want a functional space that feels as good on the first day as it does the last.

Airbnb renovations targeting the bathroom can be extensive, such as reconfiguring the entire layout, or they can focus on upgrading the tapware and linens for a quick improvement.

If your property has only one bathroom, an ensuite or second bathroom can be a worthwhile upgrade, particularly for families. It is also one of the costlier jobs, and it usually needs building consent, so weigh the cost against what it could add to your nightly rate before you commit.

The outdoor space.

New Zealand is beautiful, and pulling some of that beauty into your property’s outdoor area is a great way to make it feel more expansive. Guests immediately feel they are getting more value for their stay if they can relax outside, enjoy some beautiful scenery, and ideally recline in privacy. It’s almost like adding an entire new room to your home.

Short-term rental renovations to your outdoor space can range from completely landscaping the area to adding high-quality outdoor furniture and reliable lighting. A thoughtfully designed garden or deck will usually support a higher nightly rate than a few small improvements, though the cost goes up. Before adding a deck, hot tub or pool, check whether you need building consent and what your council and body corporate rules allow.

A few things don’t qualify as full short-term rental renovations, but they still add plenty of value for your guests (and, in turn, your listing’s reviews). We recommend focusing on a few simple upgrades that can do a lot for the property:

• Investing in high-quality bedding and linen.
• Installing fast, reliable Wi-Fi (preferably fibre, where possible).
•  Ensuring your property has good lighting (even changing the bulbs to a warmer tone helps).
• Giving the walls a fresh coat of paint in neutral tones.
• Keeping the home comfortable year-round with heating and cooling that work, such as a heat pump or air conditioning. Guests notice a cold or stuffy house quickly, and it shows up in reviews.
• Checking that your bed setup matches the number of guests you advertise for.
• Adding a comfortable workspace if you want to appeal to guests who work while they travel.

You don’t always need a full short-term rental renovation. Sometimes, a few small targeted upgrades can make all the difference. However, if you opt for Airbnb property renovations, start with the highest-impact changes to your guests’ comfort.

Focus on the kitchen and bathrooms, the overall feel of the property, and anything broken or worn. That keeps your ratings high and your nightly rate worthwhile.

Plan the timing and the cost

A renovation also costs you bookings while the work is under way, so build that into the numbers. Schedule the work for a quieter part of the year where you can, and decide up front how many nights you are prepared to lose and how long the upgrade will take to pay for itself. The best way to decide is to talk it through with whoever manages your property, because they can see how guests are responding.

Work with Stayhub for your Airbnb renovations.

Stayhub manages short-term rentals across Auckland, Rotorua, Taupō and Tauranga, and works with owners on short-term rental renovations, listings, management, and more.

Our team can help you work out which upgrades to prioritise, so your investment goes where guests will notice it. If you’re considering listing your property or growing your short-term rental portfolio, get in touch for a free appraisal to see what you could earn.