How much have you spent bringing your listing online and improving or expanding it over time?
Roughly 1500$ for linens, towels and a simple extra bed. Will be spending another 2k for changing the AC split system.
For 2 new beds,tv,tablett around 1000 dollars i guess.
We’ve spent $1200 on a new mattress and box spring, linens, towels, accessories and a mini fridge.
Profits will be used to install a ceiling fan and buy a headboard. We will also purchase a microwave and coffee maker is guests say they want one in the room as opposed to using the ones in the kitchen.
If we actually make any money before we get regulated out of existence (I’m always thinking ahead!) then we will build a deck and make some other home improvements that we currently can’t afford.
About $5000 – new AC, new Bed, new linens x 3, new curtains and sheers for 5 windows, new area rugs and mats, new bath towel sets x 3, new shower curtain, miscellaneous.
550 GBP. new towels, duvet sets, light bulbs, duvets, pillows, cleaning supplies, power adapter, essentials, hair dryer, iron and board. Lots of other things too. But thats the bulk of the cost out of the way.
Reinvesting is a bit different than initial investment. One implies you are already making money. The other implies you are hoping to make money, and have possibly taken on debt without guarantee of traffic.
I’m really curious to know if people have gone full steam into this and now possibly have to keep renting just to pay for the improvements they made.
I know, for example, a competitor nearby spent $40,000 to add a system of stairs and landings to add a “private entrance” to the 4th floor of his townhouse and only rents it for $39/night.
Hi @felixcat,
Hah. True. Actually, I spent a ton of money getting my room set up. I didn’t really have a choice - it was a black hole. So far, traffic is not good, but not zero.
You asked how much I spent to get the room ready (at least, that’s how I understood the question). Well, I did everything from scratch, which in India is a bit cheaper to do than in the West. But still maybe Rs. 5 lakhs (around USD 7400 at current rates of exchange). I don’t have precise numbers - that’s just an educated guess, and the work was done over a fairly extended period of time. At the current rate of return, it’s going to take a while to get even that back.
Wow, that’s a lot of money. Why doesn’t he rent it for more? Is $39 the going rate? That’s not a lot for the USA.
Right now we are at $85,000 USD to renovate our whole guest home, install a septic and put on a new roof. We plan on putting in an in ground pool and hot tub, but not until we pay a little off first. We also plan to keep adding in things, like kayaks for our lake, and a dock, and anything else we can think of to make this even better.
No, it’s an abnormally low rate, but the stairs lead only to a tiny bedroom with half bath. At that rate, it will take a number of years to pay off even without factoring in taxes, etc.
I spent $15000 adding a separate entrance and bathroom and extending the front porch. It wasn’t exclusively for ABB and I wasn’t able to raise my rate because there is too much competition. But I am able to make the room available all the time. Previously I would block off a lot of days because I had so many dogs here. Now I am booked about half the month. Before I would book 5 or 6 times times a month on average. I expect to make 2x as much as last year and so the addition will be paid for in 3 years. My rate is between 31-45$ a night.
Spending $18,000 this month, (plus place closed for a month), for improvements, changes and new features; indirectly allowing me to raise prices by 30% for this coming season.
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Insane. Unless he is planning to have a son/daughter …living there
What’s your nightly rate?
With the amount I spend I already feel it is too much as I rent in very low rent. And I am still trying to convince myself the new AC split is worth it
Hi @Vera,
Around USD 30-35. Around 30 for 1 person, 35 for two. But things are moving very slowly right now. However, I was pleased to get my fourth review; I thought my guest has forgotten about me. But apparently he just waited till the last minute to post, for some reason. Anyway, if things don’t speed up, it could take like 2 years to recoup my investment…
Is the AC split system for the guests, or the whole house? Is it a single split A/C like they have in places like India, or one of those central air things?
Part of those 5 lakhs was a A/C for the guest room. We don’t have central air here.
s the AC split system for the guests, or the whole house? Is it a single split A/C like they have in places like India, or one of those central air things?
It will be a split system for the 2 guest rooms only. The AC they currently have on now is the ones you put on the window
Ah, right. That sounds like what we call a split A/C here. This consists of two components, one inside the room, and the other a box containing the compressor that sits outside, typically under a window on a support frame? Those are very common here. They run around USD 1000-1500 at the higher end here. What kind of area are your two rooms?
Yes, the structure is just like you described. They are private rooms in my apartment. We live together. Will lbe spending 2000$ + installation fees for both of the rooms.
That sounds a bit on the expensive side, but I suppose this is not India.
Though judging from the responses here, people are spending comparatively vast sums on improvements. I guess it makes sense if you are getting plenty of business.