Vacation Rental Home: An Investment for the New Year

Author: Anne Dailey Design Interiors |

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As we wrap up 2022, this is a perfect time to think about investments for the new year ahead. One of the greatest investments you can make is to create a vacation rental home. I know this, not only from working with my clients and watching the market trends, but my husband and I have built a vacation home this past year.

Due to the boom in the housing market and the travel industry, people are more interested now than ever before in staying at a vacation rental home. Many people can work from anywhere and enjoy going on work-cations where they can stay for a month (or more).

With Airbnb and Vrbo continuing to be hugely popular, now is the best time to consider creating a vacation rental home. In the hills of South Dakota, Vacasa has come to town and there are other wonderful local rental property managers that do very well in keeping properties filled and they handle all of the nitty gritty for you. Owning a vacation rental property is a great way to finance a second home, secure equity more quickly, and create quite a nice income. You might have so much success with your vacation home rental that you decide to invest in more than one property, in multiple areas!

So, what's the difference between residential design and designing for a vacation rental? It's a blend of hospitality and home. It's all about creating an experience for your renters, so they book again and again&—and spread the word to their friends. You want them to never want to leave, and ache to return once they do. To say: Oh wow, this one had everything we needed!; and to tell their friends to request your home on their next trip too.

The key to a successful vacation home rental is mixing hospitality in with your design. This can be done through a few key updates to accommodate renters. Here are my top three suggestions:


Walk-in closet

A walk-in closet is sure to impress any renter. If they plan on staying for an extended amount of time, knowing they have a space to store all their luggage, clothes, shoes, and accessories, is key to their comfort. Organizers and shelving can help them feel more grounded and at home. You can even include extra bedding, towels, and a few bathrobes to make the experience feel like a luxury retreat.

Color-coded bedding

One of the top tips I give to clients is to use one color bedding for each mattress size. This makes turnover between guests a breeze. If all the twin size beds have white sheets, it's easy to have someone come in and clean and swap the bedding. The same with Queen and King sizes. This simple tip makes life so much easier.

Luggage racks

You want your home to feel as hospitable as a hotel. Having a luggage rack or two will allow your renters to feel cared for—and give them a place to unpack. It’s a simple gesture, but one that can go a long way.

I'll be sharing a full Vacation Rental Checklist in the new year, so stay tuned for that. As you consider investing in a vacation rental property in the new year, remember that it’s not only an investment in your family’s future, but in the local community too. By driving activity in the area, you’re inviting tourist dollars to be re-invested in the local community. Here in South Dakota, that’s something we welcome, especially after the past two years.

I'm excited to be focusing on the market of vacation rental design out in the Hills myself, for my family and my clients. If you know of someone who needs one pulled together, send them my way!

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