Why furnished rentals need specialized design

Unlike traditional residential design, furnished rental properties have a number of stakeholders with a number of different perspectives. Owner/ Investor/Host, Designer, Property Manager, Cleaner, Hosting Site, and Tenant. From each of these viewpoints, it’s important to think about what the relationship to the rental is about? Guests aside, these viewpoints all share something in common. Business.

Another important thing to consider is how far both the short-term and medium-term rental market has come. The emergence of Airbnb back in 2008 and other rental property platforms like Furnished Finder have completely changed the game. Today it’s a very competitive and sophisticated market that has seen a huge rise in growth and popularity as both a “way to stay” and an an investor asset class.

To show how the different perspectives play out, let’s look at the example of a property that needs renovating and how those decisions impact the design choices.

The Owner/Operator Hat

As the Owner, Investor, or Host (you may be one or all three of these things) you are in both the property business and very importantly, you’re in the hospitality business! As the business owner, decisions need to be made around metrics such as rental rates, occupancy rates, revenue growth opportunities, and bottom line profits. Decisions around renovating your rental are therefore driven more by economics and return on investment (ROI).

For the owner/investor/host it’s important to consider the timing and duration of the works so that it can be planned to best minimize rental down time. Working backward it’s essential to determine the level of investment and budget that makes sense for the project and have a clearly defined and detailed scope of work bottomed out. Materials, fixtures, and fitting need to be specified and often ordered ahead of time and a contractor needs to be lined up with a clearly defined scope and contract in place. Scope creep, change orders and unforeseen delays need to be avoided at all costs in the preservation of the bottom line.

Designers Viewpoint

From the designer’s perspective, decisions need to be made that maximize functionality, ensure longevity, enhance bang for your buck, look beautiful, are readily available and afford the best amenity possible. For example, when specifying new countertops for a kitchen or bathroom, Cararra Marble is considered a classic in high-end residential design. For a rental property, this is a bad choice. Whilst beautiful, it etches easily and will not maintain that pristine look for long. Scheduling refinishes will take time out of your bookings calendar and will require additional expense. From a guest’s perspective, it’s hard to relax and have fun around the kitchen island when you know that bottle of red wine is going to leave a tell-tale round mark the morning after. Your property manager, your cleaner, and your guests will all thank you for installing something like Quartz as an alternative.

Similarly, when renovating spaces, the opportunity exists to maximize the layout and create more functional spaces. Is there an opportunity to play with the floor plan to add an en-suite bathroom? or be creative with a bedroom to design a bunk-house style room, increasing capacity and rates. For guest amenities, designing a small but well-equipped workstation into an underused nook can be the difference between a tenant selecting your property over the competition. Every detail counts when considering the design details for your property.

Cleaning & Maintenance

From your cleaner’s perspective, renovation choices are all about practicality and time. Are the materials, fixtures, and fittings in the home practical to clean, quick to clean, and maintain that newly renovated look? Using dark grout, for example, was a trend that started a few years back and is a great option for a rental. White tiles and black grout have an elevated look, help conceal dirt, and are less likely to change in color as quickly as a light-colored grout making it an overall lower maintenance choice.

Turnover time is another important consideration when making decisions around your renovation. Taking into account some level of seasonality, there will be times when check-out to check-in has a very limited turnover window. Ensuring materials choices are consistent around the home for flooring, surfaces, fixtures, and fittings make for good design cohesion as well as easier and faster cleaning protocols.

Tenant Experience

As a tenant, your furnished rental presents an opportunity to experience living a lifestyle that is different and sometimes aspirational from the  everyday reality. Stating the obvious, most people don’t live in newly renovated homes, or homes designed for living in for a few weeks rather than years. Choices around renovation should always be driven by good business but they do allow for some bolder, more fun, and sometimes less traditional choices.

Marketing

It’s also worth considering your marketing channels and brand identity when planning and implementing your renovation. Hosting platforms like Airbnb, VRBO and HomeAway prioritize rentals that have consistent high-star reviews, great photography, and unique features. Renovation choices that help your property stand out will remain more memorable as tenants consider their different options. Having your own property website also provides another layer of professionalism and credibility for potential tenants.

There are many examples of why a furnished rental requires a specialized approach to design beyond the example of renovation. Interior decorating, design refresh, styling, hospitality, amenities, and overall guest experience all provide significant opportunities for design choices that influence the bottom line. Whatever the specific design choice may be, one thing is true, great-looking properties book more frequently and command higher rents.

If you are an operator needing renovation, interior decorating, or refresh help for your new, or current furnished rental, contact our sister company, Henry Hosts at jules@henryhosts.com and we’d love to chat with you.