Major renovations? Then raise fee?

Hi Folks, I need some opinions. Our listing is a small guesthouse on our property. It needs new windows, (they don’t leak, work fine and have screens, just look crappy); bathroom shower needs replacing, (older fiberglass. Walls will need new sheet rock, probably rot in framing) Exterior siding is becoming brittle. In a nutshell, money.
If we accomplish these repairs, I will need to go from $90. per night to a higher charge.
Could I do that?

There are so many variables. Where are you, what is your competition like, how much will the renovations cost and how much more for how long will it take to pay for them, are your reviews currently suffering because of these things, etc etc.


Depending on costs involved could you not take repairs out of your profits and then you can offset as a business cost?

As @Arlene_Larsson mentioned what you can charge would depend on what your competition charges for comparable properties.

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Not enough information. There are many variables.

I did $16,000 of renovations and addition to my Airbnb room. I added a separate entrance, made the doorway between the Air room and mine into a closet space, added an ensuite bathroom and closet and put a front porch on my home. I did this without any need or expectation of recouping my investment. I did it to my personal home to improve my home for my use. Nevertheless, as a direct result I was able to triple my bookings, keep my price steady and get better reviews.

I discovered that in my area people don’t want to make crepes with the host in the morning. They want to get in and out at all hours of the night, they don’t want to bother or be bothered. They want a clean space and new=clean. I think if you remodel you will be able to raise your price some. Higher price and better reviews might lead to more bookings and higher price over time. Or it may enable you to maintain your price and not feel pressured by competition to lower your price.


We have had a couple bad reviews about these issues. We have had to take the “profits” to enable other repairs on the property that we didn’t realize were problems until we had guests, and were in the guesthouse cleaning and preparing. We just installed a very expensive central heat and air, in it to make life more comfortable. That will take a while to pay off.
We are cheap because I feel the renovations are needed. Guests, for the majority, love the place and never mention the needed reno.
I don’t know if I am being too sensitive? Maybe we should stay cheap and accessible. Our area is flooded with nice, newly renovated, listings. But because they are “nice”, they discourage dogs and kids, and charge alot!

Then just be very clear in your listing that the bathroom is a bit shabby, etc. If I’m traveling with my dog I prefer a place that’s not too nice!!

It makes me think about a home I sold a while back. We made so many renovations and when the realtor suggested the sale price it did not reimburse us for all the renovation expenses. She said the house would sell quickly because the renovations made the home beautiful but we should not expect to make back the money spent on renovations. I think the same applies to rentals, it will rent quickly but not necessarily reimburse you for all the expenses. The price depends on location and demand.

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Redo the bathroom, Paint the windows, old aluminum windows paint out nice. Flat black. Paint the siding… What do you mean rot? Does the roof leak? Fix the problem that caused the rot first then fix the walls. It does not have to cost a fortune depending on your skill set, what parts of the job can you do?



I put in a $30K bathroom and gutted the old Master bath and created a luxury master bath.
While it prevented guests from complaining about my being too high priced after the remodel, …
I was not able to increase my rates.
This was a big big lesson.
I thought that by creating a gorgeous master bath…like in magazines…it would be enticing and increase my rates…it did nothing. Nada. My rates are lower than they used to be.
I will admit that I have fewer 4 star reviews, and more 5 star reviews.
That’s that.

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You can do anything you want with your Nightly charge; the question is whether potential guests will book at a higher rate. If you’re in line with other, similar listings in your area, I would just “eat” the cost of the reno – but take it as an amortized cost of doing business tax deduction.

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I think my view is a bit of several voiced on this thread. It all depends on the actual renovations made.

  1. maintain overall property value and ease of re-sell (e.g. updated decor)
  2. what is important to the owner (eg. New windows for energy efficiency)
  3. Increase appeal of the rental (e.g. spa bathroom, private entrance, addition of a kitchenette, updated appearance)

1 & 2 will increase your value either by increasing the price/appreciation or how quickly you can sell.

  1. You can charge a bit more; how much depends upon your market, it should make your listing standout among the others and be more appealing so easier to rent (more rentals).

I’ve been updating my beach condo as I have the money. I really haven’t been able to increase my price by much because the market is saturated with rentals BUT my condo rents quicker/earlier/faster than before.

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I watched Stay Here on Netflix and it really opened my eyes. I would rather rent fewer nights at a higher rate than more nights at a lower rate. I have a profit goal per month. I did a major renovation to one of my listings and raised the price. I also revamped linens, pictures, description and made the amenities on par with higher priced listings while still not being the most expensive place on the market in my area. I made back the $5,000 I put into the renovations in 3 months. I increased my target $$ per month to make the money back. You can and should get the money back that you put into it. That’s called making a profit and running it like a business. When I start feeling like the rooms are running me, I remind myself that my Airbnb is my b*^$% and not the other way around.


The best way to do renovations is to finance them from profits you already have in your hands. It’s highly unlikely you will get your reno investment back from the incriments of rate increases.
Otherwise, it also makes sense if properties in your area appreciate 10-15% a year. At least you will have some piece of mind that you will get your investment back sooner or later.
People pay for location and amenities based on the av rates in that particular area. Any luxury stuff rarely pays off unless it’s HNWI area (Monaco, Maldives…)

If you’re worried about charging too much, so your prices are currently low, then you can renovate and charge more.
Beware of a ceiling price though…a two bed apartment in Michegan will still be a 2 bed apartment in Michegan, even if it has a heli-pad


Absolutely if you don’t price yourself out of your market. I’ve just re-grouted some tiles in the bathroom. Not a line I ever thought I would find myself writing. But I have had the occasional mark down on Cleanliness that mentioned the bathroom even though I’m on top of cleaning it. i will be interested to see if it makes a difference. As far as how much to charge extra for improvements, as opposed to ongoing repairs, think about how much it would cost you to borrow the money to do it and therefore how much (as a minimum) you should charge to cover the cost. About 10-15% of the capital cost per year extra seems about right. Maybe less if you can claim the cost back on your taxes.

And the price of a new ceiling can send your costs through the roof. :japanese_goblin:


I can laugh freely, now that I now the frowny satanic emoji is a smiley face!

It’s only Kabuki, Barns san.

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ああ歌舞伎! まあ私はちょうどそのすぐにGoogle!

Mōshiwakearimasen, watashi wa Youtube de Cher no konsāto o mite imasu. Watashi wa zōn ni iru,

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