There is no question that your revenue is directly linked to the standard of your furniture items in short term rentals and serviced accommodation furniture and overall setup. Your home should be looking like a holiday home.
So what do you actually need if it is that important?
Having hosted over 50,000 guests in multiple countries, we have a lot of data. And we know what turns a guest into a booker that gets a great review and what attracts negative reviews.
At the start, it is easy to jump on websites such as FB Marketplace, gumtree, craigslist, etc. Sourcing cheap second-hand furniture or low-quality new furniture. We get this and this is what we did to get going as well. In hindsight, however, we wish we found the money and spent a bit more initially. As these properties have always achieved the lowest reviews from the start. Versus the properties, we invested a bit more into from day 1.
As a short term rental and serviced accommodation host, you are in a very competitive space and that competition is getting bigger and better. Since COVID the standards have increased dramatically and you must start investing more to get more.
Notice we use the word investing and not cost.
If we invest in our properties we expect a greater ROI when we put more investment in at the beginning. Now, this doesn’t mean we go crazy and spend tens of thousands it just means we are sensible and are always thinking about the guest first and not our wallet.
These are the 5 key things you should be thinking about:
- The guests experience
- Your brand identity in the future, NOT NOW!!
- Durability
- ROI
- Ease of replacement
So let’s unpack these a bit more.
Table of Contents
The Guest Experience
Without guests, you haven’t got a business in the holiday let industry and you definitely won’t have a lifetime client if you disappoint them on the first visit. It is imperative that you make a first good impression and how you dress your property and design it is crucial. Put yourself in their shoes as they approach the property and go inside. If there is something you don’t like guess what… YEP!! They aren’t going to like it either. So fix it now while you still have the chance before it costs you money.
Your Brand Identity
You may not think it is a big thing or for most, it doesn’t even cross their mind. Especially at the beginning when you just want to get started. You will take any property on as long as it makes money… BIG MISTAKE!!
And it will hurt your profitability later on.
Think about how you want to look and feel like a brand in 3 years or even 5 years’ time and set yourself up now like that. Maintain your brand standards with all your setups and your acquisitions and never break the boundaries.
Do this and you will increase your profits in the medium to long term substantially.
Durability
It’s easy to buy a cheap bed from FB or the cheapest sofa bed you can find from Ikea however I have news for you…
“Buy cheap, buy twice” and ultimately it will cost you more.
Your furniture is going to get some hammer so make sure it can take it or your ongoing furniture costs will eat into your profits.
ROI (Return on Investment)
Anything in business should be viewed as an ROI, whether it’s a staff member a piece of advertising or the furniture for your short term rental and service accommodation properties. The more luxurious you make the property the more money you will be able to attract. However, there will be a ceiling price on this so you have to find the middle ground.
You will need to identify your avatar before you buy anything to ensure you maximise your returns. For example, there is no point kitting out a property for a hen party if you have no hen parties visiting your city regularly and the area is more suited to contractors.
By doing this you will increase your chances of achieving a high ROI from your setup cost and get guest bookings almost immediately after listing the property.
Ease of Replacement
We will end on this one however do not think it is not important.
DO NOT… go and buy fancy blue plates for one property and yellow for the next only to find out they don’t stock them anymore when you come to replace a broken one and have to get a different colour which looks terrible in your cupboards. Remember the finer details matter and these small things make a huge difference to your guests’ experience. Stick to plain and white would be our expert advice.
If you would like to work more with Luke Stays short term rentals and serviced accommodation we have many ways to do that.
Whether you’re looking for an expert to design and set up your property for your ideal avatar or maybe you’re a landlord looking for an expert to maximise the bookings and run the day today. We have you covered, hey we can even offer you a guaranteed rent if that suits your appetite for investing better.
Visit our Home Styles page, to know more about how Luke Capital Group will handle the furniture of your short term rentals and serviced accommodation.
You can also see our properties and their photos, on our online booking platform Luke Stays.
List your property with us now.
