Best Airbnb Renovations - ROI Ranked

Not all renovations deliver equal value. Understanding Return on Investment (ROI). The additional revenue generated compared to the spending is crucial for Short-Term Rental (STR) success. The right improvements justify higher nightly rates, increase occupancy, and generate positive reviews that boost your listing.

This guide ranks the best Airbnb renovations based on ROI potential. It helps you make informed decisions about where to allocate your budget for maximum impact on your bottom line.

Why Prioritize Renovation ROI for Your Airbnb?

Strategic property upgrades impact your Airbnb's success metrics. Well-chosen renovations justify higher nightly rates, increase booking frequency, earn better guest reviews, and help you achieve Superhost status. In a saturated market, these improvements create a competitive advantage that keeps your property booked while others sit vacant.

The impact of ROI-focused improvements is measurable and significant. Companies specializing in STR design and furnishing, like Showplace, report clients seeing an average 22% revenue increase after optimizing their properties. This demonstrates that thoughtful renovation investments can deliver substantial returns when approached with care.

Understanding & Estimating Airbnb Renovation ROI

You can estimate renovation ROI using this formula:

ROI = (Estimated Annual Revenue Increase / Renovation Cost) x 100%. 

Costs include materials, labor, and financing, while revenue increases come from higher nightly rates and greater occupancy.

However, this calculation provides only an estimate. Actual ROI varies significantly based on:

• Property location and local market interest

• Target guest demographic and preferences

• Execution quality (DIY vs. professional)

• Renovation project

• Initial condition

Certain renovations offer intangible benefits contributing to long-term ROI beyond direct revenue: positive reviews lead to sustained bookings, lasting improvements reduce maintenance costs, and quality upgrades increase the property's value.

Best Airbnb Renovations Ranked by ROI Potential

The renovations are ranked based on industry consensus and observed impact on guest appeal and revenue potential. #1 typically offers the highest potential ROI, but individual results may differ based on your property and market.

1. Kitchen Refresh/Update

The kitchen is called the heart of the home for good reason. It's one of the most scrutinized spaces in your listing photos and a critical area for guests, especially those booking longer stays. A dated, worn kitchen can significantly diminish perceived property value, while a fresh, appealing one justifies premium rates.

High-ROI Ideas:

• Painting cabinets is a cost-effective transformation that updates the space.

• Updating cabinet hardware with modern pulls and knobs

• Replacing countertops (quartz, butcher block, or laminate)

• Adding or updating a backsplash for aesthetic enhancement

• Ensuring essential, clean, and functioning appliances (refrigerator, stove, microwave, and coffee maker are must-haves)

• Improving lighting (under-cabinet lighting, pendant fixtures over islands)

A well-executed kitchen update can justify higher nightly rates, attract families and longer-stay guests, and feature prominently in listing photos that increase bookings.

To upgrade your kitchen cost-effectively, consider stylish and affordable cabinet pulls or a quality gooseneck faucet from retailers like Amazon.

2. Bathroom Boost

For most guests, bathroom cleanliness and modernity are essential. A dated or dingy bathroom often leads to negative reviews and deters bookings, while a fresh, clean one suggests overall property quality.

High-ROI Ideas:

• Replacing the vanity, sink, and faucet with modern options

• Reglazing or replacing tub/shower tile (clean grout is important!)

• Updating the showerhead, as rain showerheads are in demand.

• Replacing the toilet seat or the entire toilet if it is old or stained.

• Improving lighting with bright, attractive vanity lights

• Adding contemporary towel bars and hooks

• Applying fresh paint and installing a new shower curtain or glass door

Bathroom improvements impact guest comfort and cleanliness perception, leading to better reviews and increased future bookings.

Upgrade guest experience by making a cost-effective yet noticeable difference in bathroom comfort with plush bath towels and a high-pressure shower head from Amazon.

3. Enhancing Curb Appeal

First impressions count! Curb appeal affects potential guests' initial perception from listing photos and arrival experience. A welcoming exterior creates positive expectations and starts the guest experience well.

High-ROI Ideas:

• Fresh paint on the front door creates an eye-catching entrance with bold colors.

• Updated modern house numbers

• Improved exterior lighting for safety and atmosphere

• Basic landscaping (mowed lawn, weeded beds, potted plants)

• Clean walkway and porch

• New welcome mat that reflects your property's style.

Curb appeal improvements enhance photo quality, create a welcoming first impression, and reduce guest anxiety upon arrival. These upgrades are cost-effective relative to their impact.

Simple touches like modern house numbers or Amazon solar pathway lights can greatly influence the crucial first impression.

4. Bedroom Comfort & Style

Sleep quality is a significant factor in guest reviews. To ensure satisfaction, bedrooms need to be comfortable, clean, and relaxing.

High-ROI Ideas:

• Invest in a quality mattress and bedding.

• Provide multiple pillow options (firm/soft) to suit different preferences.

• Add blackout curtains or blinds for improved sleep quality.

• Ensure adequate bedside lighting and convenient outlets; USB ports are beneficial.

• Simple, attractive decor that fosters a serene atmosphere (avoid clutter)

• Include a full-length mirror for guest comfort.

Bedroom improvements directly impact reviews and don't require major construction, making them a wise investment.

Ensure guest comfort by creating a sleep experience with highly-rated blackout curtains and hotel-style bedding sets from Amazon.

5. Living/Common Area Refresh

Living areas are where guests relax, socialize, and spend much of their stay. These spaces need to be comfortable, functional, and visually appealing to create a true experience of being away from home.

High-ROI Ideas:

• Comfortable and durable seating (sofa, armchairs) for regular use.

• Appropriate overhead, task, and ambient lighting layers for various activities

• Fresh neutral paint to enhance and modernize the space.

• Area rug to define the space and enhance comfort.

• Functional coffee table and side tables with space for guest belongings

• Minimal decor and wall art (local themes can improve the guest experience)

Improvements to the living area enhance guest experience and property photos. Focus on durability and style suitable for rental use rather than trendy pieces that may lose their appeal.

6. Tech & Smart Home Features

Modern tech amenities add convenience, security, and a contemporary feel that appeal to many guests, particularly millennials and business travelers.

High-ROI Ideas:

• Keyless entry simplifies check-in/out and enhances security. Recommended for operational efficiency.

• High-speed Wi-Fi with good coverage throughout the property (necessary)

• Smart TV with streaming options (guests use their own accounts)

• Smart thermostat for energy efficiency and guest comfort

• USB charging ports integrated into outlets or lamps

Tech upgrades mainly improve guest convenience and operational efficiency. Smart locks are highlighted in listings and appreciated in reviews.

A reliable smart lock for keyless entry and a user-friendly thermostat are excellent investments that enhance guest experience and hosting operations.

7. Adding Distinctive Amenities or Experiences

Distinctive amenities can help your property stand out, target niche travelers, and command premium rates in competitive markets.

High-ROI Ideas (depends on property/market):

• Dedicated workspace (desk, comfortable chair, adequate lighting)

• Outdoor seating area, fire pit, or BBQ grill

• Hot tub (high appeal, more maintenance required)

• Themed decor that relates to your location.

• High-quality coffee station with local beans

• If targeting that demographic, family-friendly items (crib, high chair, games).

A distinctive amenity can be high ROI if it taps into unmet local demand or creates a unique selling proposition. It requires careful consideration of cost versus appeal to target guests.

Budgeting and Prioritizing Airbnb Renovations

Before renovations, assess your property's current state and identify the biggest weaknesses or areas that detract from the guest experience. Review your listing images or ask a friend for honest feedback.

When prioritizing improvements, consider:

• Impact: Which changes will guests notice and appreciate most? (Refer back to the ranked list)

• Cost: What fits your budget? Start with high-impact, low-cost items like paint, hardware, lighting, and curb appeal.

• Necessity: Before cosmetic improvements, address urgent repairs or critical items (e.g., leaky faucets, uncomfortable mattresses).

You can do renovations in phases as your budget allows. Start with the highest ROI improvements, then reinvest some increased revenue into the next phase.

Common Airbnb Renovation Pitfalls to Avoid

Even well-intentioned renovations can fall short of delivering optimal ROI. Here are important mistakes to avoid:

• Over-Personalization: Designing for personal taste instead of broad guest appeal. Neutrals with pops of color work better than specific themes.

• Ignoring Durability: Choosing inexpensive furniture/finishes that wear out quickly under rental use (false economy)

• Poor Quality Photos: Failing to get professional photos after renovations undermines the marketing benefit (guests won't book what they can't see).

• Neglecting the Target Guest: Not tailoring amenities/style to likely renters (e.g., business travelers vs. families have different priorities)

• Scope Creep: Letting renovation costs spiral out of control without a clear plan. (Stick to your budget and prioritization strategy)

Conclusion: Invest Smart, Host Effectively

The best way to allocate your Airbnb improvement budget is to focus on high-ROI renovations. These include your kitchen, bathroom, curb appeal, and guest comfort features. These investments enhance your property's appeal, justify higher nightly rates, and generate positive reviews for long-term success.

Are you ready to transform your property and maximize its earning potential with expert design and furnishing? Explore Showplace's tailored solutions to achieve guest-ready results and proven ROI with minimal effort. Their STR design experts can guide you in creating a standout rental that delivers impressive returns.