Setting up my first Airbnb: do I need to renovate?

One of the most common questions that new Airbnb hosts ask themselves is: “how should I set up my Airbnb for my first guest”? Often, hosts get stuck choosing between making small changes to their home or going all out and spending more than they initially-planned.

But the truth is, you can have a guest-ready Airbnb without overspending, as long as you have a clear plan. Whether you’re a homeowner in Sydney, managing a holiday rental in Melbourne, or a new investor in Queensland, your goal is the same: a clean, inviting space that delivers great reviews and reliable returns. This guide outlines how to get there and where to spend (or save) your setup dollars.

Redecorating vs renovating: which is best?

While you may be tempted to go all out on overhauling your property, maybe even going as far as buying designer furniture or expensive art pieces, you should first ask yourself “what do guests really look for in an Airbnb?” In short-term rentals, guests pay for comfort and convenience, with cleanliness and functionality consistently topping Airbnb’s guest review criteria.

Before considering major purchases or renovations, start small and focus on what guests actually experience during their stay: lighting, bedding, layout, and amenities. Often, small changes like a fresh coat of paint, soft linens, a quiet bedframe, and thoughtful touches go much further than structural work.

The Airbnb amenities guests are looking for in 2025

Here’s what should appear on every host’s Airbnb amenities checklist:

• Fast and reliable Wi-Fi,
• Quality bedding and pillows,
• Blackout curtains,
• Self check-in,
• Air conditioning and fans in summer,
• Heaters or reverse-cycle systems in winter,
• A well-stocked kitchen,
• A coffee and tea station,
• Streaming TV or Chromecast,
• A dedicated workspace,
• Bathroom essentials, and
• Safety items such as a smoke alarm, fire extinguisher, and a clear house manual.

None of these are luxuries — they’re all must-haves for maintaining competitive bookings across Australia’s short-term rental market. Investing in these basics will make your property more appealing in listings and ensure guests feel at home from the moment they arrive.

Small touches that stand out

Once the essentials are covered, consider adding a few thoughtful additions that won’t break the bank but will leave a lasting impression:

• A local welcome guide with recommendations of nearby cafés and attractions,
• Luggage racks and wall hooks,
• Board games or books,
• A portable cot or high chair, and
• Pet cots or couch covers for pet-friendly Airbnbs.

What guests don’t often care about

Guests value functionality over flair. A simple, uncluttered space helps them imagine themselves in it, and it’s easier to clean between stays. Save your budget by avoiding:

• Excessive décor or clutter,
• Premium cable TV, and
• Dozens of decorative pillows.

Common mistakes to avoid during setup

Even well-intentioned hosts can make setup errors that affect performance. Avoid these pitfalls early on:

• No backup linen or towels: always keep spares at the property to manage quick turnovers.
• Poor lighting: dark rooms feel smaller and less inviting. It’s best to use warm LEDs and lamps in key areas.
• Neglecting temperature control: guests expect comfort in all seasons. No air-conditioning in summer or heating in winter is likely to result in a bad review.
• Overpromising in the listing: be as accurate as possible when describing your property.
• Ignoring property maintenance: fix small issues like dripping taps, faulty remotes before they’re noticed by guests.

Attention to these small details builds trust, improves reviews, and reduces management headaches down the track.

Setting up an Airbnb on a realistic budget

When creating a budget, note that overall cost varies depending on property size, quality, and scope. Refer to these cost estimates:

• A modest one-bedroom: AUD $5,000–$7,000
• Larger homes or luxury properties: AUD $8,000–$15,000 

If you’re going past these figures, take some time to reassess what changes you’re making, and whether they’re really worth it.

Here are some tips on how to spend strategically and stretch your setup dollars:

1. Prioritise a comfortable sleep

The bed and bedding are integral to a good night’s sleep. Invest in a non-squeaky bedframe, a medium-firm mattress, and spotless presentation.

2. Make sure your property is spotless

Guests will notice and leave a negative review if your property hasn’t been cleaned properly. Consider hiring a professional cleaner for turnovers — though it may seem costly, the return on time and reviews is worth it.

3. Go second-hand or local

You can find high-quality furniture through Facebook Marketplace, Gumtree, or local auction houses. Furniture made with wood or metal are preferable, as flat-pack pieces may wear quickly.

4. Use multifunctional furniture

For smaller properties like city apartments, space-saving designs such as sofa beds, fold-down tables, and storage ottomans are best.

5. Add smart tech

Smart locks, motion-sensor lighting, and affordable Wi-Fi boosters improve convenience and reduce maintenance calls.

Partner with professionals and get set up for success

Setting up your first Airbnb can be daunting, especially if you’re doing it by yourself. Partnering with professional Airbnb management to help set up your property not only saves you the stress, it can also help save on costs. Experts like Hometime partner with furniture suppliers like Home Remedy and A.H. Beard for exclusive discounts.

Hometime also helps you handle pricing, listing management, and more so you can focus on maximising your returns, not optimising logistics. Schedule a call to learn more about how you can earn more from your STR.