Short-term rentals offer growing business opportunities for designers, furniture retailers

It has been just over a year since Texas-based retailer Star Furniture named interior designer Jessica Duce, founder of J Duce Designs, as its first trade ambassador and in that time period, the designer’s own “star” has continued to rise as one of the faces for an evolving and profitable business category in the furniture and design industries: short term rental property design.

As co-founder of the Vacation Rental Design Summit along with High Point x Design‘s Jane Dagmi and branding and marketing strategist Ericka Saurit of Saurit Creative, Duce has been a vocal proponent of the opportunities for retailers, designers and manufacturers presented by short-term rentals (STR). Although not as common of a category as residential projects for many designers, STRs can represent an ongoing profit stream and built-in repeat business, and Duce is enthusiastic about the opportunities for all parties involved.

“With short term rental design, we have an opportunity to create something out of the ordinary,” said Duce. “We also get to explore new products and ideas that can make an STR stand out. For example, cold plunges and wellness rooms are being requested now. Developing unique experiences is a way for designers to stretch their design muscles.”

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The creativity factor required for short-term rental design is only one part of the skillset required, according to Duce. Equally important is evaluating how to allocate the budget for the best return on investment, all with the goal of creating an exemplary guest experience and a profitable business for the owner, a different focus from those inherent in residential design and one dependent on analytical thinking and strong vendor partnerships.

“Understanding where to spend the dollars most effectively, along with the quality of your project, is crucial,” Duce said. “Gone are the days of filling a home with rejected furniture from the basement or purchasing items with a short life span. We want smart and sustainable options that make sense.”

New furniture, every few years

The no-rejected furniture directive increases the potential for regular repeat business for furniture retailers and their designer customers. If a short-term rental property is successful, then routine refreshes become part of the plan, along with furniture purchases to replace worn or dated items.

With consumers replacing a sofa on average between seven and 10 years and STR investors replacing upholstery every five years or so at the most, the frequency of short-term rental purchases outpaces the general time line for residential projects, and Duce said the partnership she has with her vendors is vital to a successful outcome.

“With the demand of STR purchases, we rely heavily on our relationships with our brands. Knowing the product lines that work and the timelines they have are key to our install success,” explained Duce. “Having a great relationship with a brand helps my business and my projects in so many ways.

“We seek out and vet specific brands that can help our community, from lighting to furniture to bedding and more. What makes us unique is that we are NOT a buying group. Your relationship with a company/brand is direct, and you build your own volume and grow that relationship. We have just advanced your buying power beyond what you could get on your own.”

Duce added that she makes herself available to her investor clients for impromptu Facetime calls or texted images if the investor is considering a potential purchase.

“Being a part of the process from the beginning really helps us stay on track and be prepared,” she said. “One challenge is getting investors and property managers to trust the process. Designers have amazing resources that can create a better product and outcome, and truly make their property stand out. We need to help them understand this.”

Investor perspective

Gary Pietrock and his wife, based in Omaha, Neb., are the owners of several short-term rental properties across the U.S., and they have worked with Duce to differentiate their short-term real estate investments from other properties in the same vicinity.

“Growth has been significant, and in many locations, growth has probably exceeded current capacity needs,” Pietrock said, referring to his personal STR investments. “If you think this is a get-rich-quick scheme, STR’s are not for you. STRs are a long-term investment that requires continuous monitoring to trends, upgrading furnishings and facilities, and (that is) about the end user experience. A VRD interior designer (STR focused) is a key member of the team.”

Brent Peterson of Oceanfront Properties on the Central Oregon Coast is also a client of Duce’s. He said that the market for short-term rentals has decreased in Oregon over the past three years due to higher home prices and restrictions that can delay the required permits, preventing buyers from renting their homes as a STR to offset the debt.

“Prior to three or four years ago, there was lots of growth which led to where we are now with restrictions,” Peterson said. “Locals tend to not like the idea of lots of STRs. Most of the owners are out-of-state or out of the area.”

The proximity between short-term rental property and owner underscores the necessity of a “boots-on-the-ground” designer that implements property enhancements in line with the surrounding neighborhood. Additionally, as competition for rental customers grows, properties that stand out represent a stronger financial potential, according to Pietrock.

“There are too many STRs in most locations, which leads to STR owners not continually investing in their property,” he said. “We consider this a huge advantage because it’s way easier for us to differentiate our STR experience versus someone not investing in their STR.”

Retail intel and collaboration

At Star Furniture, Duce works with Michael Galloway, vice president of marketing, on video and content campaigns that highlight the retail offering. Along with the public facing ambassadorship, Duce also assisted in the establishment of a trade program late last year that continues to expand, and Star is also implementing other initiatives to support designers not only in Texas, but across the U.S.

These success stories will be part of the dialogue at the upcoming Vacation Rental Design Summit as an increasing audience of both retailers and designers look for new ways to increase business and grow market share in a challenging economic environment.

“If you are in the STR design world or are considering it, I highly recommend joining Vacation Rental Designers,” Duce said. “We have education, collaborations, coaching and brand support with special discounts just for our members.

“We created a community because there was a void in short term rental design,” she added. “STR designers source and design differently so having your community understand that is pretty special.”