Real Estate Agent · Austin, TX · Member since 2020 · 102 posts · 51 votes
I feel like the last few years we have been in an 'amenity arms race' of sorts in the STR worls. I feel like the next pivot is going to be all about intentionality with the setup. You used to be able to put a couch and a bed and do well. Then, before anyone else did it you could put a pool and a pickleball court and it would crush. Now I feel like we are seeing the STR market truly mature to where it is more about being intentional and curated in the space you have vs just trying to amenity max tf out of a property. That is at least what we are seeing in the Austin/Central Texas market.
The amenity arms race got stupid. A pickleball court does not fix a bad layout, cheap beds or a sloppy turn. Guests remember if the house worked for their group.
@Blake Anthony Carter, one thing I’ve noticed from being around real estate investors is that adding more does not always make a property better. At some point, every amenity has to make sense for the guest you’re actually trying to attract.
If the guest is coming for a weekend with family, a great outdoor space may matter more than five extra features inside. If they’re working remotely, a quiet workspace and good internet may matter more than a game room.
I also think owners are starting to look harder at what each amenity costs to maintain versus whether guests actually care about it.
To me, “intentional” means the property feels like it was built around a certain type of guest instead of just adding things because other STRs have them. That feels like a much more sustainable way to compete.
Agree, you need to know your audience & understand the type of customers you are going to engage and build around it: Kids oriented, retreat style, sports style etc.
I am seeing some of the same in Tampa area. When I examine comps now I am seeing some well done homes with the core amenities outperform the pickleball court homes. Amenities are not a replacement for the basics, but a balance between all is usually a recipe for success.
The amenity arms race got stupid. A pickleball court does not fix a bad layout, cheap beds or a sloppy turn. Guests remember if the house worked for their group.
The amenity arms race got stupid. A pickleball court does not fix a bad layout, cheap beds or a sloppy turn. Guests remember if the house worked for their group.
Yes agree with this 100% - drove me crazy when people would blindly just give a list of "hot amenities" for a property without looking at the actual property's unique situation -- for example, a property right in the best neighborhood of town for nightlife and parks and recreation doesn't need all the backyard bells and whistles and gimmicks that one in the middle of nowhere "needs"
as a user and a str owner for a very short while ( did not like it) for me its all about the bed bedding and quiet enjoyment. But I am basically looking for fishing cabins . But even when we travelled as family kids grandkids grandpa ( me) beds and bedding and quiet place to sleep was top of mind.. I dont know how one markets those amenities in the STR space.. but in motel Hotel you certainly can get those amenities by price point.. Crappy bed and I would never go back.
Having a white duvet with a nice scarf or blanket sends the message that the bedding is clean and new.
Of course their could always be an old mattress underneath, although I find that those who put in that type of care to make the bedding top notch also care about the mattress underneath.
Blake, I’ve been noticing the same shift. The “amenity arms race” only works up to a point. Eventually, adding one more hot tub, game room, or sports court stops creating a meaningful difference if every nearby listing is doing the same thing.
The better question is probably: what makes this property feel intentionally designed for the guest you actually want? A strong layout, good presentation, thoughtful sleeping arrangements, privacy, views, outdoor space, or a clear use case can be more valuable than simply stacking features.
From the tax side, there's another interesting angle here. For an existing STR, improving the interior of the property can be just as tax-efficient as adding standalone amenities like a hot tub. Interior rehab items that qualify as shorter-life property can potentially be accelerated through cost segregation and bonus depreciation rather than simply being treated as long-lived building improvements.
So if an owner is deciding between spending money on another amenity versus putting that same money into flooring, furnishings, kitchens, bathrooms, or other interior improvements that actually improve the guest experience, the rehab itself may still create a meaningful accelerated depreciation opportunity.
That makes the intentionality point even stronger. You don’t necessarily have to keep adding bigger amenities just to create tax efficiency. Improving the property itself can potentially accomplish both goals: a better guest experience and a strong depreciation benefit.
Of course, I’d still make sure the resulting losses are actually usable based on the owner’s material-participation and passive-loss situation before treating the deduction as part of the return.
The strongest STRs seem to be moving toward better design and better economics, not simply more stuff.
Feel free to DM me, I’d be happy to send over a few resources that might be helpful.
