Which STR Upgrades Actually Increase Bookings? How to Invest Wisely in Your Rental Property

Investing in your short-term rental can be a big decision—so how do you know which upgrades will actually pay off?

On this week’s Hosting Hotline, listener Bree called in with a great question:

“I’m considering investing $15,000–$25,000 in privacy fencing to create a more enclosed, retreat-like atmosphere. Some guests have mentioned feeling uneasy about the neighborhood, but I’m still getting solid five-star reviews. Will this investment actually increase bookings and revenue—or is it an unnecessary expense?”

This is something many STR hosts face: deciding which property improvements will lead to higher occupancy and nightly rates versus which might not make a big impact. In this episode, we break down the factors that determine whether an upgrade is truly worth it—so you can confidently invest in your rental business.

How to Know if an Upgrade Will Increase Bookings

Not all property upgrades lead to more reservations or higher revenue. Before committing to a major investment, consider these factors:

1. Check Guest Feedback & Reviews

• Are guests consistently mentioning a concern in their reviews (even if they’re still giving five stars overall)?
• Are they making comments in private feedback about feeling unsafe, exposed, or needing more privacy?
• Have you seen any reviews that mention a lack of outdoor amenities?

Even if it’s not in the public reviews yet, guest feedback can help predict future challenges. If multiple guests feel uneasy about the area, a privacy fence could enhance their sense of security and improve future bookings.

2. Analyze Market Data & Competitor Listings

Before spending thousands, take a data-driven approach to see if the upgrade aligns with demand.

• Use PriceLabs Market Dashboard or AirDNA to evaluate similar listings in your area.
• Are other properties with privacy fencing commanding higher nightly rates?
• Do top-performing listings in your price range include features like enclosed yards or gated spaces?
• If other listings offer privacy fencing and yours doesn’t, could this be affecting your ability to compete?

If the answer to these questions is yes, the investment could help boost revenue. If not, you may want to consider other upgrades.

3. Will This Upgrade Allow for Additional Amenities?

• Fencing can unlock new revenue streams—for example, if you add a fence, could you also:
  • Become pet-friendly, allowing you to charge a pet fee and attract more bookings?
  • Install a hot tub or fire pit, both of which could justify higher rates?
  • Add an outdoor shower or cold plunge, creating an upgraded experience?

If privacy fencing allows you to introduce new amenities that increase perceived value, the return on investment could be stronger.

4. Consider Long-Term Financial Planning

A privacy fence won’t just impact short-term bookings—it could also:

• Increase the property’s overall value when it’s time to sell.
• Reduce neighbor complaints by creating a sound barrier.
• Improve guest experience, potentially leading to better reviews and return bookings.

Even if you don’t install the fence today, consider setting aside a percentage of each booking in a separate business banking account (like Relay) to save for the investment over time.

Other High-Impact STR Upgrades to Consider

If you’re looking to maximize your revenue without breaking the bank, consider these guest-favorite enhancements:

✔️ Outdoor Spaces – A well-designed patio, cozy fire pit, or seating area can elevate your listing without a massive investment.

✔️ Smart Locks & Security Features – Keyless entry, outdoor cameras (facing entryways, not guest spaces), and motion-sensor lights can increase guest confidence.

✔️ Luxury Bedding & Towels – Premium linens can make a huge difference in guest comfort and reviews.

✔️ Themed or Unique Decor – Stand out from the competition by creating a unique experience, such as a well-designed space with a cohesive theme.

✔️ Strong WiFi & Work-Friendly Spaces – With remote work on the rise, offering fast internet and a designated workspace can attract a new segment of travelers.

Final Thoughts: Make the Numbers Work for You

Bree’s question is a great example of smart investing in short-term rentals. While privacy fencing could provide a sense of security, it’s crucial to run the numbers, evaluate market data, and consider long-term benefits before making the leap.

Want to analyze your own potential STR upgrades? Download our FREE STR Deal Analyzer to break down your costs and projected revenue before making a decision.

Have More Questions? We’d love to hear from you! Submit your hosting questions to the Hosting Hotline and tune in to the podcast for answers. Don’t forget to follow us on Instagram for more tips: @thanksforvisiting_.

Thanks to everyone who submitted questions. To hear your voice on the show and send a question to Sarah and Annette, submit your burning hosting questions at: hostinghotline.com.

Download a transcript of this episode.

Resources:

• Stayfi: Use code THANKS for 50% your first 3 months of service
• No bookings for your Airbnb? 5 Reasons Why and How to Fix ASAP! | Subscribe to our YouTube Channel
• Design Upgrades That Drive Higher STR Bookings with Somerled | Check out this episode
• Learn How to Strategically Design your Property | Book a call with Somerled
• Download our FREE STR Deal Analyzer