Introduction
Estimating remodeling costs for a STR rental is like asking “what’s the price of a car”. It will depend on the make, model, year, and conditions. The goal with this guide is to share some guidelines you can use to quickly estimate the cost of remodeling and furnishing a STR for your due diligence.
Disclaimer
From experience, two contractors may give you very different quotes for the same job. It’s what makes estimating remodeling costs more of an art than a science. The numbers we are providing here could end up being very off from the reality. Hence the importance of budgeting conservatively. Additionally, this guide was created by and for Kissimmee Florida STR investors primarily.
Starting point: The Kitchen
When we look at the pictures in the MLS of a property we are looking to buy, the first area we look at is the kitchen. Guests of STR in Kissimmee usually travel with family or in groups, and they like to cook in the house. Hence, a remodeled kitchen can add value to your investment. There are three things you usually remodel in a kitchen: cabinets, countertops and appliances. Of course this also includes backsplash, paint, sink, etc.
Quick numbers:
- Replacing all cabinets: $8,000 to $10,000
- Optionally you can reface or refinish the cabinets for less
- Replacing all the appliances (we recommend stainless steel): $5,000
- Granite/Quartz countertops + sink: $5,000
As you can see, a kitchen remodel can cost anywhere between $15,000 to $30,000 depending on the size of the project. High-end remodels can cost significantly more, but for our market / builder quality it should be in that range.
Next: Bathroom
Estimating the cost of the bathroom is a bit easier than for the kitchen. There are four main components to it:
- Toilet
- Sink
- Tub/Shower
- Cabinets
Additionally, you may need a plumber, and if you want to upgrade the floor and the tiling that will be extra.
A quick and simple bathroom remodel should cost approximately $10,000. If you’ll be remodeling the master bathroom then potentially $15,000 to $20,000. A simple remodel (where you just upgrade the shower and maybe the toilet and some tiles) could be $5,000. It will all depend on the extent of the job.
Flooring
In all our properties we’ve replaced the carpets with either vinyl or laminate. The main reasons are to allow pets and that they are easier to maintain.
The cost to replace the flooring consists of two things: labor (measured by the square footage of the area) and materials. The contractor will measure your floor size and charge you approximately $2 to $4 per square foot, depending on the material. Then the materials will be another $2 to $5. Expect to spend approximately $4 to $10 per square foot. Tile flooring will be more expensive.
At a minimum, we would recommend removing the carpets from the common areas, especially if the house has a pool. Some owners leave the carpets in the room and that’s usually fine.
Furnishing the house
One question I get all the time from clients is “how much should I budget for furniture”. Again, the answer will always be “it depends”. Let’s say you need furniture for a guest room. You can buy a full bed, mattress, dresser, two night stands, decorations, and supplies from Wayfair for less than $2,000. I’ve seen people buy these items used from local stores for less than $1,000 and other hosts buy them from premium stores for close to $5,000. In order to keep this guide as simple as possible, my rule of thumb is:
- Master bedroom: $3,000
- Guest bedroom: $2,000
- Living room: $5,000
- Game room: $4,000
- Other decorations: $1,000 to 5,000
- Dinner area: $2,000
- Pool area: $3,000
- Common areas: $3,000
As an example, if I’m buying a 5 bedroom resort house with no furniture in it, I would budget the following:
- 5 bedrooms: $11,000 ($2k x 4 + $3k)
- Living room: $5,000
- Game room / garage: $4,000
- Pool area: $3,000
- Common areas: $3,000
- Dinner / breakfast table: $3,000
- Decorations: $5,000
- Electronics (Nest, TV, etc): $4,000
Total: $38,000, which is very close to the $35-40k that usually takes to remodel.
You shouldn’t be buying premium furniture unless you are catering to high-end guests. Similarly, guests won’t treat your house like you do. Focus on durability. A glass coffee table probably won’t last. Similarly, furniture with sharp edges could be a liability. STR furniture will deteriorate faster than your own. Expect the items in a STR to last at least three times less than in a normal house.
One more thing: budget for future replacements and repairs
Short-term rentals with pools in Kissimmee have three important items that you may need to repair or replace at some point. While they shouldn’t go into your remodeling budget immediately, they could eat up future profits, and hence it’s worth preparing for them.
Roof
The two most common roofs in central Florida are shingles which last 15 to 25yrs and tile which can last over 30yrs. Roof costs can vary but we typically use $25,000 as an estimate. We tend to see a lot of properties come to market once they become 20yrs old as owners know the roof will need to be replaced soon and don’t want to take on the expense. Do your research on these homes.
HVAC
They usually lasts around 15yrs but it’s not uncommon to see some units with well over 20yrs still operating. At that point we tend to replace them as you can save quite a bit on energy and repairs become expensive. The cost of an HVAC unit is around $7,000.
Water Heater
On average the water heater should last 15yrs, but it’s not uncommon to see them last well over 20yrs. You can replace it for around $1,000.
Pool Surface
A well maintained pool can be resurfaced every 10 to 15yrs on average. Lack of maintenance will shorten the life span. The cost to resurface a pool will be around $5,000
FAQ
How long does it take to furnish a house before listing it on Airbnb?
With my husband we’ve been able to remodel our properties on average in two weeks from closing day to marketing on hosting platforms. That includes touch up paints, fixing some items, building all the furniture, decorating, hiring a photographer, and other details. It’s a lot of work, and things don’t usually go according to plan. If doing everything by yourself then budget closer to a month from closing day to listing launch. On the hand, if you’ll be using a third party to do the work then it could take much longer.
What if the house I’m buying comes with the furniture?
That’s great! It’s rare to buy a STR in Kissimmee that comes empty. Most of them were either STR or the owner moved to another state or country and will be leaving all the furniture and decor with the house. In that case you can budget less and may be able to close and list the house quicker.
Where do you get your furniture and decorations for your STR?
Wayfair, Amazon, Ikea, Target, and a few local stores. Hosts with multiple properties tend to have specific brands they trust and like. Every time they buy another house they use the same items. We do that as well.
Any final words or recommendations?
The first remodel will take the longest. You’ll learn from it and once you do a few more you’ll know exactly what to buy. Spend some time on your first STR, look at all the details and create your own style. Imagine you are the guest entering the house. Is your first impression “wow”? Or is it “looks ok”? The whole process will be time consuming but worth it.
Feel free to reach out to me through our contact page with any questions or if you need a referral to a local decorator.
