STR Training Series – Lesson #1 Home Layout & Size
STR Training Series – Lesson #1: Why Bedroom Layout & Capacity Matter More Than Anything
Hello everyone — Mike Fish here with Minnesota Real Estate and Management. I’m incredibly excited to kick off our Short-Term Rental Training Series. After years of analyzing properties, managing thousands of bookings, and working across four counties, I’ve seen this industry grow and evolve faster than most people realize.
Just in Crow Wing County, we’ve gone from about 150 short-term rentals to over 350 in only a few years. That tells us two things:
The market is thriving
We’re approaching a true saturation point
Now — that doesn’t mean the opportunity is gone. Far from it. We’re still putting new properties up and seeing incredible results. One property we launched during the third week of June generated over $50,000 in the first two months. The demand is there.
But the days of “throw anything on VRBO and it will make money” are over. Today, you have to be more analytical, more strategic, and more intentional.
Understanding the Central Minnesota STR Landscape
Central Minnesota is extremely seasonal. When I evaluate a property, one of the first things I ask is:
“Is this a 1-family, 2-family, 3-family, or 4-family VRBO?”
That’s because 90% of our traffic is groups of people — families coming together to make memories at the lake. And the size of the groups you can host is directly tied to revenue potential.
✅ The On-Season:
May 20 – September 10
We shoot for 90 booked days during this window.
Some properties exceed 130–150 straight days depending on appeal, amenities, and lake quality.
Summer rates vary widely, but in our region, properties average anywhere from $350 to $1,200 per night depending on the lake, layout, and amenities.
✅ The Off-Season:
Weather plays a huge role — ice thickness, snowfall, trail conditions.
On average we aim for 50–60 off-season days, primarily weekends.
Some properties crush this. Others barely move. It’s extremely dependent on features, layout, and location.
Why Bedroom Count & Layout Are the #1 Profit Driver
The first thing I look at — right after location — is bedroom count, bedroom layout, and bedroom flexibility.
A lot of people assume a 4-bedroom is “twice as good” as a 2-bedroom.
But in STR world?
✅ A 4-bedroom can be worth multiple times more than a 2-bedroom.
That’s because once you can comfortably host 10–15 guests, you unlock a different tier of bookings and rates.
Example:
A 3-bedroom with three queen beds = often a one-family VRBO.
But a 3-bedroom with:
King
Queen
Large bedroom with two twin-over-queen bunks
…is now a two-family VRBO, and revenue potential doubles or triples.
Key Elements We Evaluate Immediately
1. Bedroom Setup & Flexibility
Are rooms sized to support bunks, kings, or additional sleepers?
2. Legal Bedrooms
This includes:
Proper egress
Adequate heat source
Ceiling height compliance
Lodging-permit spacing (beds must be 3 feet apart)
Inspectors will check this.
3. Bedroom Flow to Bathrooms
Number of bathrooms directly impacts group satisfaction and reviews.
4. Multiple Gathering Spaces
Bigger groups need:
A living room
A family room
Additional indoor/outdoor hangouts
This dramatically increases review quality.
The Hidden Issue: Septic Capacity
This one surprises nearly every new investor.
Your STR license capacity is always tied to the septic rating, not the number of beds.
I constantly see beautiful 4- or 5-bedroom homes with a septic system only compliant for two bedrooms. It’s extremely common.
Typical fixes:
Upgrading a drain field (approx. $5k)
Adding a 1,500-gallon tank (often $10k–$15k)
It’s not the end of the world — but it’s critical to know before purchasing.
The Big Picture: Why Bedroom Capacity Matters Most
Two-bedroom places have their place — cute, simple, cozy, and profitable in the right niche. I’ve developed many of them.
But if you’re looking to:
✅ Cover costs
✅ Maximize revenue
✅ Build a strong-performing STR
…then bedroom count and bedroom layout should be your top priority.
In Central Minnesota, a realistic ballpark is $200–$300 per family, per night.
So if you can host a 3-family VRBO or 4-family VRBO, hitting $800–$1,000+ per night becomes very realistic — as long as the property is developed and managed correctly.
Final Thoughts – Lesson #1
The very first thing I evaluate on any property is:
✅ Location
✅ Bedroom configuration
In many cases, it’s wiser to buy a 4- or 5-bedroom that needs work than a pristine 2-bedroom with limited capacity.
And don’t forget — “bedrooms” can be added in:
Lower-level spaces
Lofts
Guest houses
Bunkhouses above garages
We’ll go into all of that in later lessons.
This is Lesson #1 of our new STR Training Series. I’m committed to releasing one new lesson every single day. Stay tuned — and reach out anytime with questions.
— Mike Fish
Minnesota Real Estate & Management
