Book a Discovery Call
Interior Design Blog

How Strategic Design Turns Vacation Rentals into Profitable Assets

How Strategic Design Turns Vacation Rentals into Profitable Assets

Think about the last time you booked a short-term rental (STR). You probably scrolled through a handful of listings before one finally grabbed your attention.  

What made you stop?  

Most people connect with the photos first, especially the lighting, the colors, and the way the rooms feel through a screen. Design creates an instant connection between a guest and your space, long before they ever pack a bag.

A vacation rental is a working asset, and the design must carry that responsibility. The right decisions, made early, can shift your short-term rental from average to top-tier, with better STR ROI numbers to show for it.

As a Minneapolis Airbnb designer, I’ve spent the past twenty years designing vacation rentals across Minneapolis, St. Paul, Mexico, and several U.S. markets. The properties that consistently rise above the rest share one thing in common: every design choice serves both the guest experience and the business outcome.

In this guide, we’ll walk through what makes an STR profitable and the steps that help you increase Airbnb bookings in a crowded market.

What ‘Profitable’ Means for Vacation Rentals

Currently, there are nearly 2.5 million rental listings in the U.S. However, truly profitable vacation rental properties do a few things extremely well:

  • They get booked quickly.
  • They support stronger nightly rates.
  • They earn better reviews.
  • They hold their value over time.

A property has to make an impression in two places: online and in person. Online, the listing should stop people mid-scroll. In person, the layout, lighting, and comfort need to match the promise of the photos.

When both sides work together, you see better pricing, longer stays, stronger reviews, and repeat guests who trust your space.

Three STR Projects That Prove the Power of Good Style

I don’t decorate for fun. I design spaces to perform. These three projects are ones I am incredibly proud of, and a clear depiction of what happens when a space’s design finally supports the experience it’s meant to deliver.

Oceanfront STR Turnaround in Rosarito, Mexico

This condo had one of the most stunning ocean views I’ve ever worked with, but you would never know it from the listing photos. The interior felt flat, cold, and completely disconnected from the beauty just outside the balcony.

To fix that, I warmed up the lighting, brought in durable coastal textures, upgraded to contract-grade upholstery, and styled the entire space with a photo-first mindset.

Within three months, the average daily rate climbed more than 30 percent, bookings stayed above 90 percent, and review after review mentioned the comfort, warmth, and overall vibe. The listing finally showed what the space always had the potential to be.

Family-Friendly Boutique in Plymouth, Minnesota

Again, this home needed personality and a sense of direction. We brought everything together with scaled furniture, kid-friendly textiles, and a color rhythm repeated just enough to feel intentional.  

My team and I also made sure the photography felt warm and bright without over-styling.

The listing immediately started outperforming similar rentals because it finally looked and lived like a boutique-style stay instead of a generic family rental.

Urban STR in Minneapolis, Minnesota

For this city condo, we rearranged the layout to create natural conversation zones, brought in right-sized rugs, managed the cord clutter, and layered in lamps to soften the lighting. Then we styled the entire space for the camera.

Of course, guests started commenting on how comfortable and convenient everything felt. Bookings also picked up, which is exactly what you’d expect from effective Airbnb interior design.

Guest Psychology = Profit Psychology

Here’s the truth I repeat to every STR owner I work with: guests book with their eyes first and fall in love with comfort once they arrive.

Your listing is a set of photos before it’s anything else. Once guests get there, the design either confirms the photos or breaks the charm. The STRs that stay booked all year long deliver on both.

Let's talk about this.

Photography Appeal

Guests can sniff out cold or staged images instantly. Your photos should feel warm, natural, and believable. Soft lighting, calm colors, and thoughtful styling make someone scrolling through the app stop and think, “I want to stay there.”

Comfort Noticed in Reviews

Reviews like ‘so comfortable’ or ‘slept like a dream’ are usually born out of hotel-quality bedding, seating scaled to the room, functional surfaces, and thoughtful storage. When guests can move easily and rest well, they remember how the place made them feel, and they’ll book again.

Durable Surfaces

You’re hosting dozens of people every year. You need materials with staying power. Performance fabrics, contract-grade seating, washable rugs, and durable finishes keep your STR in shape without endless touch-ups.

Effortless Flow

Flow is the quiet hero of a great stay. Guests shouldn’t be guessing where to put their bags, how to gather as a group, or where to walk without bumping into something. Clear paths, logical room transitions, and group-friendly seating set the tone for a memorable stay.

Quick Wins That Move the Needle (No Renovation Needed)

If a full overhaul isn’t in this year’s budget, start with these high-impact upgrades. They’re fast, cost-effective, and highly visible in photos.

1) Layer the Lighting

Lighting might be the simplest change with the biggest payoff. It affects everything. Swap mismatched bulbs for warm 2700–3000K LEDs, add dimmers, and mix overhead, task, and accent lighting.  

Warm, layered light makes rooms feel bigger, calmer, and more inviting. It also photographs beautifully and helps your listing stand out the moment it goes live.

2) Upgrade to Hotel-Quality Bedding

Sleep is the quiet driver behind so many five-star reviews. You can never go wrong with crisp, breathable sheets, a medium-loft duvet with corner ties, a comfortable pillow setup, and a textured throw at the foot of the bed.

3) Fix the Layout and Scale

Most rentals already have the right furnishings; the magic is in how they’re arranged. A properly sized rug, a clear conversation zone, a sofa positioned to open up the room, and simple cord control can help the space function and photograph better.

4) Style for the Camera

Remove about a quarter of the décor, repeat a simple color palette from room to room, and create a few intentional moments, like a clean coffee setup or art lit by a picture light.  

Then, bring in a professional photographer who understands STR angles. Clean, styled images can shift booking activity almost overnight.

Your Rental Could Be the Next Big Booking Spot

Your place could absolutely be the one guests bookmark, save, and rush to book, especially if you’re in a great location.  

Sometimes it just comes down to a few intentional design moves. I know it can feel a little intimidating when you’re designing for paying guests instead of yourself, but once the pieces come together, the payoff is fantastic. That’s how you increase Airbnb bookings without relying on constant discounts.  

And you don’t have to figure it out alone. With twenty years of award-winning short-term rental design behind me, I can help you shape a space that looks incredible online and feels even better in person.  

Let’s team up and turn your rental into the kind of stay people talk about long after checkout.

free download