Lesson #2 : Overall Home Layout Matters in Short-Term Rental Profitability
Welcome to Lesson Two in our Short-Term Rental Training Series. This is part of Section One: Analyzing a Property for Potential Profitability.
In Lesson One, we talked about bedroom configuration and how bedroom count directly affects rate, group size, and overall income. Today, in Lesson Two, we’re talking about layout—one of the most overlooked but most important drivers of a successful vacation rental.
I always say: we rent an experience as much as we rent a property. The layout—inside and out—plays a huge role in shaping that experience. Amenities matter, but how your guests use the spaces matters even more.
And as a reminder: everything we’re talking about here describes the ideal property. No lake home is perfect. But understanding the ideal gives you a roadmap for improving profitability and identifying high-performing opportunities.
The Big Surprise for Most Owners and Buyers
People are often shocked when I show them which properties in our portfolio perform the best. It’s not always the homes with the fancy granite countertops or luxury finishes. Instead, the strongest performers usually have:
✅ A functional layout
✅ Multiple gathering spaces
✅ Strong indoor and outdoor hangout zones
✅ A game room or bonus area
✅ Amenities that encourage shared experiences
Families and groups are coming together to make memories, and layout is what makes that possible.
What an “Ideal” STR Layout Looks Like
In Lesson One, we talked about the value of having more bedrooms—three, four, five+ so larger groups can book at a higher nightly rate. The next step is understanding how those groups actually use the home.
Inside: Aim for 3–4 Hangout Spaces
This can include:
A main living room
A second family room or sitting room
A basement lounge
A theater area
A game room
A loft hangout
Or converted spaces like garages
And here’s something that surprises people:
The number one return-on-investment upgrade is a game room—especially in a garage.
It doesn’t have to be fancy. Ping pong, darts, foosball, a pool table, a bar counter, a TV, an old couch—add heating and cooling, and you’re done. These spaces photograph well and dramatically increase guest satisfaction.
The same goes for theater rooms. One of my most profitable places literally has a sheet as a screen, an overhead projector, and two couches. People love it—and when you can list “theater room” on the OTAs, it gets clicks.
A primary bedroom with an attached bath is also appreciated—while not required, it does broaden your guest base.
Outside: Aim for 3–4 Outdoor Hangout Areas
Outdoor spaces are equally important:
A deck
A patio
A fire pit area
Dock seating
A screened-in porch (this is huge—guests love them)
A yard for games
A modest swimming beach
A hot tub (these are gold in the off-season)
I’ve had properties where simply adding a small, clean swimming beach increased summer rates by $100 per night. And screened-in porches? They consistently get some of the best feedback from guests.
Dining Spaces Need to Match Occupancy
This is something owners often overlook:
Your seating should match your sleeping capacity—inside and outside.
If your home sleeps 12 but your dining table seats 8, your reviews will reflect it. Guests gather around food more than anything, and they expect seating that supports the group size.
Additional Layout Considerations That Matter
Office Space: More guests work remotely during their stay. A dedicated office—desk, monitor, fast Wi-Fi—is a huge selling point.
Laundry: Essential for week-long stays and critical for housekeeping turnover.
Climate Control: All sleeping spaces and hangout areas should have adequate heat and A/C.
Storage: Guests need open closets or at least a place to put their things.
Bathrooms: Two to three bathrooms for larger homes makes a big difference.
What We’re Really Looking For
In short, the best-performing STRs have a more expansive or “broken up” floor plan—multiple zones where different parts of the group can hang out simultaneously.
Compared to a simple one-room, lofted cabin layout, these layered spaces create far more value and guest satisfaction.
This isn’t about right or wrong—it’s about understanding what gives you the best chance of maximizing profitability.
So the ideal formula?
✅ 3–4 hangout spaces inside
✅ 3–4 hangout spaces outside
Keep that in mind as you buy, build, or improve your short-term rental.
Wrapping Up
Again, I’m Mike Fish, and this is Lesson Two in our first section on analyzing a lake home for short-term rental profitability.
Wherever you’re watching or reading this, make sure to subscribe or follow along—we’re releasing a ton of practical content to help you evaluate, build, and grow successful STRs in Central Minnesota.
And remember:
We also offer our “Just Ask Mike” feature on our website. If you have a question, submit it—we’ll answer it directly and often turn it into training content that gets sent right back to you.
Thanks for taking the time, and we’ll see you in Lesson Three.
