When designing a short-term rental (STR), aesthetics alone won’t guarantee success. While a stylish space may attract guests initially, poor design choices can negatively impact your return on investment (ROI). From impractical layouts to bad lighting, small details can lead to fewer bookings, bad reviews, and higher maintenance costs.
If you want to maximize profits and guest satisfaction, avoid these five costly STR design mistakes.
1. Ignoring Functionality for Aesthetics
Many STR hosts focus too much on creating an Instagram-worthy space without considering functionality. While aesthetics are important, a rental must also be practical and comfortable for guests.
Common Functional Mistakes:
- Choosing trendy but uncomfortable furniture.
- Overcrowding the space with unnecessary décor.
- Ignoring storage solutions for longer-stay guests.
How It Hurts Your ROI:
- Guests may leave negative reviews about discomfort.
- Higher chances of damage to impractical or fragile décor.
- Fewer repeat bookings due to poor usability.
How to Avoid It:
- Invest in comfortable, durable furniture.
- Prioritize storage options like luggage racks, closet space, and extra shelves.
- Balance aesthetics with practicality—choose easy-to-clean materials and layouts that enhance flow.
2. Poor Lighting Choices
Lighting plays a crucial role in guest experience, yet many STR owners get it wrong. Too much harsh lighting or overly dim spaces can make a rental feel unwelcoming.
Common Lighting Mistakes:
- Relying only on overhead lighting with no ambient or task lighting.
- Using cool, sterile lighting instead of warm, inviting tones.
- Not providing enough lighting for workspaces, bedside tables, or kitchen counters.
How It Hurts Your ROI:
- Creates a cold, uninviting atmosphere that turns off potential guests.
- Increases the likelihood of negative reviews regarding ambiance.
- Makes the space less versatile for different guest needs (e.g., remote work).
How to Avoid It:
- Layer lighting with ceiling fixtures, table lamps, and under-cabinet lighting.
- Use warm white bulbs (2700K-3000K) to create a cozy atmosphere.
- Ensure well-lit workspaces for remote workers and business travelers.
3. Overlooking the Importance of Durable Materials
Short-term rentals experience more wear and tear than regular homes, yet many owners opt for delicate finishes and furnishings that don’t last.
Common Material Mistakes:
- Choosing cheap, low-quality furniture that wears out quickly.
- Installing carpets that stain easily instead of durable flooring.
- Using light-colored fabrics that show dirt and require constant cleaning.
How It Hurts Your ROI:
- Higher replacement and maintenance costs.
- More negative reviews from guests frustrated by worn-out or damaged items.
- Lost income from downtime during repairs or replacements.
How to Avoid It:
- Invest in stain-resistant and scratch-resistant materials, such as luxury vinyl flooring and performance fabrics.
- Choose furniture that can withstand frequent use without deteriorating.
- Use washable slipcovers and darker fabrics for high-traffic areas.
This guide to STR-friendly materials can help you select durable, cost-effective options.
4. Cluttered or Confusing Layouts
A well-designed STR should be easy to navigate. If guests struggle to move around or find essential items, they’re less likely to leave positive reviews or return.
Common Layout Mistakes:
- Placing large furniture in small spaces, making movement difficult.
- Not providing clear pathways to key areas like the bathroom or kitchen.
- Poorly positioned TVs, seating, or beds that disrupt flow and comfort.
How It Hurts Your ROI:
- Leads to guest frustration and lower ratings.
- Reduces the perceived value of the space, making it less appealing.
- Can create safety hazards (e.g., tripping over misplaced furniture).
How to Avoid It:
- Arrange furniture with flow in mind—leave ample walking space.
- Use mirrors and smart storage solutions to create an open feel.
- Consider a professional floor plan analysis to optimize the layout.
5. Neglecting Outdoor and Entryway Appeal
First impressions matter. The entryway and any outdoor space are the first things guests see, yet many STR owners neglect them.
Common Exterior Mistakes:
- An unkempt or poorly lit entrance that feels unwelcoming.
- Outdoor furniture that is uncomfortable or weather-damaged.
- A lack of outdoor entertainment options, even in properties with balconies or patios.
How It Hurts Your ROI:
- Can lead to lower bookings if the exterior photos are unappealing.
- Guests may feel unsafe or unimpressed upon arrival.
- Missed opportunity to increase rental value with an attractive outdoor area.
How to Avoid It:
- Ensure the entrance is clean, well-lit, and welcoming with clear signage.
- Invest in weather-resistant outdoor furniture and add simple décor touches.
- If space allows, create an inviting outdoor dining or lounge area for guests.
Design for Maximum ROI
Every design choice in an STR directly impacts its profitability. By avoiding these five common design mistakes—prioritizing function, improving lighting, using durable materials, optimizing layouts, and enhancing outdoor appeal—you can create a space that attracts more bookings, earns great reviews, and minimizes costly maintenance issues.
Smart design isn’t just about aesthetics—it’s about building a space that enhances guest experience and maximizes your investment returns.
