Why Good Design is Your Best Short-Term Rental Investment

In the competitive world of hospitality, short-term rental interior design is no longer just a "nice-to-have" feature; it is a core business strategy. While many new hosts focus solely on logistics, savvy investors know that the physical pillar of the guest experience, design and aesthetics are also direct contributors to revenue.

Well-designed rentals don't just look better; they perform better too, often achieving significantly higher occupancy rates and commanding premium nightly prices compared to generic listings. To explore how design directly impacts the bottom line in the short-term rental market, we sat down with Julia Weber. Julia is an Interior Designer and Visual Communication expert who is currently launching her own portfolio of design-driven rentals in Berlin.

Does Design Actually Increase Rental Profits?

Before diving into furniture catalogs, investors must understand the ROI of Aesthetics. In a crowded marketplace like Airbnb or Booking.com, your photos are your first chance to make a sale.

"Good design can be one of the most powerful levers in short-term rentals, especially when combined with professional photography," Julia explains. "Even a small investment beyond the usual standard can pay off faster than many hosts expect. Well-designed rentals stand out among crowded listings and often achieve higher nightly rates or more consistent booking performance. A professional redesign of an outdated property can double or even triple revenue. This isn't just about expensive furniture; it's about strategic positioning that meets the demand of guests."

1. Julia, what are your three essential tips for short-term rental interior design?

• A solid foundation remains important, as short-term rentals naturally experience more wear than private homes. Think sturdy, neutral, cost-efficient if you're starting. Within a neutral color scheme, material contrasts can create a strong visual impact.
• Comfort, especially when it comes to mattresses and seating in a living room, are both things hosts should not compromise on.
• Impact often comes from carefully selected highlights and thoughtful details. Many hosts tend to save too much on accessories or small design elements, even though these extras noticeably elevate the overall appearance. Just a few well-placed highlights, such as distinctive lamps, side tables, or color and material accents, can quickly make a rental feel like a designer space rather than a purely functional one.

In the end, what matters most is the overall atmosphere. When materials, function, and details work together well, the result is a space that guests immediately connect with emotionally, and that is the real strength of good design. There is no universal formula for calculating the return on design investments. What really matters is whether the concept fits the location, the target audience, and the local market conditions. In other words, the positioning meets real demand from guests willing to pay for that experience. Each property needs to be evaluated on a case-by-case basis.

2. You are currently working with a calculation specialist to validate your investment. What does a calculation specialist do? And how do you determine the sweet spot between spending on design and ensuring the nightly rate justifies that expenditure?

I had the opportunity to work with a calculation expert called Claudia Schiffer of C. Schiffer Consulting who specializes in short-term rental investments and business consulting. With her support, we analyzed specific locations, calculated economic potential and answered how much additional investment would yield the most effective ROI for a particular property.

This allowed me to compare my own calculations with additional data and market insights. The result was very helpful because it gave me a much clearer understanding of which rentals and investments are realistic and where the economic  sweet spot lies.  I was even more surprised that the numbers suggested I could invest more. I now have a clear data-backed guide on the best rental sizes and where it is easiest to enter the market with higher daily rates which helps me feel even more confident in my decisions.

3. For your upcoming Berlin project, you're creating a design guideline in advance. Why is it vital to have a visual strategy in place during the getting ready phase?

Having a clear vision and concept from the beginning helps when decisions need to be made later in the process. If the design direction is defined early on, the entire project can be executed more structurally and efficiently.

As an interior and brand designer, it is very natural to start projects with a clear conceptual foundation. Since I plan to develop multiple rentals over time, it is important to establish a consistent design language and a recognizable concept. A design guideline does not mean that every rental needs to look identical. Instead, it creates a framework that allows individual rentals to develop their own character while still following a coherent design strategy.

It can also be helpful during the property acquisition process. When landlords see a clear plan and a professional-looking brand behind a request, it can create a stronger first impression and convey professionalism.

4. How do you find the balance between design that pops in pictures and real life, too?

Professional photos often shape a listing's first impression. A good photographer can convey a space's atmosphere through lighting, perspective, and detail shots. However, design should not exist only for photography, guest experience in real life is paramount.

That is why I recommend working with real materials whenever possible. Or otherwise using neutral colors and simple surfaces instead of artificial material imitations or very glossy finishes. These might look interesting in photos, but can appear cheap in person. A timeless base design combined with a few carefully selected highlights usually creates spaces that work both visually in photos and emotionally for guests in real life. 

5. If a host is starting with a limited budget, where should they invest first?

Wall color can have a strong impact. Even with a small budget, updating a few details can help modernize the overall look, for example, replacing cabinet handles in kitchens. If the basics are well thought out, larger elements such as a properly sized rug, floor-to-ceiling curtains, or improved lighting can create a refined atmosphere. Very cold lighting often feels uninviting, while warmer light sources can dramatically improve a space's mood.

If the rental is very outdated, a complete redesign can make sense. In such a case, furniture leasing can be an interesting option because it allows furniture upgrades without investing a large amount of capital upfront. The short-term rental market is becoming increasingly professional. As more well-equipped, visually appealing rentals become the new standard, standing out takes on a new meaning. Guests often decide within seconds whether to click a listing or move on.

6. As you prepare to launch, you've chosen Smoobu to manage your rentals. What was the deciding factor?

I have been active in short-term rental networks for some time now, through meet ups, industry events, and smaller workshops. In many conversations with hosts and operators, Smoobu was frequently mentioned as one of the most commonly used tools for managing vacation rentals.

For smaller or growing portfolios, it is a very reliable solution that allows hosts to manage bookings and multiple platforms efficiently.

Design Wins the Booking, Management Wins the Review

Investing in short-term rental interior design is the most effective way to stop the scroll and secure a booking in a competitive market like Berlin. However, as Julia highlights, design is only one half of the equation.

Great design and photography capture the booking, but only alongside great management can it secure the five-star review. Once your space is curated, Smoobu ensures your operations are just as polished as your interiors.

If you’d like support getting started on your journey, download Smoobu’s Beginner’s Guide to Vacation Rental Hosting. Or continue learning about interior design here.