Ep 8 | The $20,000 Lesson – What My Wife Taught Me About Rental Design

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Ever think you've got your short-term rental business all figured out?

I did too. Then my wife handed me a $20,000 wake-up call that changed everything. But don't take my word for it - I've got not one, but two eye-opening stories that'll make you rethink everything you thought you knew about rental design.

The Duplex Experiment

A few years back, I decided to test my rental design skills against my wife's professional eye. We each took charge of one side of a duplex, decorating and furnishing it for the short-term rental market. I was confident in my choices - after all, I'd been in real estate for years. How hard could it be to pick out some furniture and artwork?

My Side: The "Good Enough" Approach

For my half of the duplex, I went with what I thought was a solid, no-frills approach:

• Functional furniture that looked decent in photos

• Basic artwork that didn't offend anyone

• A color scheme that I deemed "neutral enough"

I was pretty satisfied with the result. It looked fine to me, and I figured guests would appreciate the clean, straightforward design.

Her Side: The Professional Touch

My wife, on the other hand, approached her side with a designer's eye:

• Carefully curated furniture that photographed beautifully

• Artwork and decor that told a cohesive story

• A color palette that created a mood and enhanced the space

At first glance, I didn't see a huge difference. Sure, her side looked a bit fancier, but was it really going to matter to guests?

The $20,000 Surprise

Fast forward one year, and the numbers told a shocking story. Her professionally designed side had outearned mine by almost $20,000. That's right - $20,000 more in a single year, just from design choices.

But here's the kicker - this wasn't just a one-off fluke. I recently witnessed another powerful example that drove this lesson home even further.

The Reluctant Investor's Revelation

A client of mine, a successful real estate broker and investor, sold his short-term rental property to another investor. The new owner, also experienced in real estate and construction, was initially reluctant to invest in redesigning the space. His argument was familiar:

• The property was already performing well

• He had already spent a significant amount on the purchase

• The current design didn't look "bad"

Sound familiar? I've been there too.

The Designer's Challenge

Here's where it gets interesting. The new owner's wife happens to be a professional designer, partnering with my wife in their firm, Element 321 Design. She saw the potential in the space that her husband had overlooked. Despite his initial resistance, she convinced him to let her work her magic on the property.

The Before and After

The transformation was subtle but stunning. Here are some of the key changes:

• Exterior: Fresh paint, improved landscaping, and strategic lighting

• Living Room: New furniture, artwork, and thoughtful decor accents

• Kitchen: Minor tweaks with big impact - stylish accessories and pops of color

• Bathrooms: Updated linens and sleek dispensers for a spa-like feel

• Bedrooms: Upgraded bedding and curated decor pieces

• Outdoor Spaces: Cleaned up and styled for better functionality and appeal

The Numbers Don't Lie

Now, here's where it gets really interesting. Let's look at the revenue for the same two-month period (May 22nd to July 22nd) before and after the redesign:

• Before: $5,157 with a 70% occupancy rate

• After: $10,922 with improved occupancy

That's more than double the revenue in the same timeframe, just one year apart. And remember, this increase happened in a market where supply was actually up and demand hadn't increased at the same rate.

Why Professional Design Matters in Short-Term Rentals

After swallowing my pride (and the $20,000 lesson), and seeing the dramatic results in my client's property, I dug deeper into why design makes such a big difference. Here's what I discovered:

The Psychology of Perceived Value

When guests see a beautifully designed space, they automatically assume it's worth more. This perceived value allows you to charge higher rates without pushback.

The Instagram Effect

In today's social media-driven world, guests want spaces that are not just comfortable, but photo-worthy. A professionally designed rental gives them the perfect backdrop for their vacation photos, increasing the likelihood of bookings and positive reviews.

Creating an Emotional Connection

Good design isn't just about looks - it's about creating a feeling. When guests walk into a thoughtfully designed space, they feel special, valued, and excited about their stay. This emotional connection translates to better reviews and more repeat bookings.

Standing Out in a Crowded Market

With so many rental options available, professional design gives you a significant edge. It's the difference between being just another listing and being the listing that guests can't wait to book.

Implementing Professional Design in Your Rental

Ready to give your rental the professional touch? Here are some actionable steps:

1. Hire a professional designer (trust me, it's worth it)

2. Invest in quality, photogenic furniture and decor

3. Create a cohesive theme or story throughout the space

4. Don't forget about the details - linens, artwork, and even coffee makers matter

5. Get professional photos taken once the design is complete

Remember, you don't have to break the bank. Even small, strategic design upgrades can make a big difference in your rental's appeal and earning potential.

The Bottom Line: Design is an Investment, Not an Expense

These two experiences - my own $20,000 lesson and my client's revenue doubling - taught me that professional design isn't just about making a space look pretty. It's a strategic business decision that can significantly boost your bottom line. Whether you're just starting out or looking to upgrade your existing rentals, investing in professional design is one of the smartest moves you can make.

In the world of short-term rentals, you're not just competing with other properties. You're competing with hotels, resorts, and the rising expectations of travelers who are looking for unique, Instagram-worthy experiences.

So, the next time you're tempted to cut corners on design or think "it's good enough," remember these stories. The extra effort and investment in professional design could be the difference between a good rental and a great one - and your bank account will show it.

Take it from someone who learned the hard way: don't underestimate the power of good design in your short-term rental business. Your future profits (and your guests) will thank you.