Thinking of upgrading your short-term rental this year? Before you dive into new flooring or reimagine your kitchen, there’s a fresh data drop you need to see.
The 2025 Remodeling Impact Report from the National Association of REALTORS® just dropped, and it’s full of insights for anyone weighing upgrades, especially those of us in the Smoky Mountain short-term rental market.
The report looked at what projects make homeowners happiest and which ones actually pay off at resale.
We dug through the details so you don’t have to. Here’s what Smoky Mountain investors and second-homeowners should know before picking up a paintbrush or calling a contractor.
The Feel-Good Factor: What Projects Spark the Most Joy?
Not all renovations are created equal and some bring more satisfaction than others.
The report assigned each project a “Joy Score” out of 10, based on how happy homeowners felt after completion.
These three topped the list with a perfect 10:
- Adding a primary bedroom suite
- A kitchen upgrade
- Installing new roofing
If you’ve stayed in your own short term rental and thought, “this kitchen is fine, but it’s not helping me charge $100 more a night”, you’re not alone.
These upgrades aren’t just for buyer appeal, they create a better guest experience too.
And here’s the thing: a better guest experience = higher nightly rates, better reviews, and more bookings.
Where’s the Payback? Projects with the Best Cost Recovery
Whether you’re planning to sell your short term rental this year or just want to make smart investments that boost long-term value, some projects stretch your dollar further.
The top cost-recovery winners from the report:
- New steel front door → 100% cost recovery
- Closet renovation → 83%
- Fiberglass front door → 80%
- Vinyl windows → 74%
- Complete kitchen reno → 60%
In short? A sleek new door or a smartly designed closet might earn back more than that dreamy hot tub you’ve been eyeing.
If you’re thinking resale within the next 12–24 months, start with projects that boost curb appeal and functionality!
You don’t have to rip out the kitchen to add value.
What REALTORS® Are Actually Recommending
REALTORS® overwhelmingly recommend painting your STR either one room or the entire interior before listing. A fresh coat goes a long way.
But here’s what might surprise you: bathroom and kitchen upgrades continue to be the highest in demand, not just for buyers, but for guests too.
Well-done kitchens and updated bathrooms are two of the biggest decision drivers for guests and for buyers if you plan to exit in the next 2–3 years.
Why Owners Are Remodeling in the First Place
You might assume that most renovations are resale-driven. But according to the report, only 18% of homeowners renovated because they planned to sell soon.
More often, owners said:
- “It was just time for a change.” (18%)
- “I wanted to improve energy efficiency.” (19%)
- “Everything was worn out and dated.” (27%)
If your STR feels tired to you, your guests probably feel it too.
And in a competitive market, outdated finishes can absolutely tank your booking rate.
Remodeling = Better Reviews
Post-remodel, 64% of owners said they had a greater desire to be at home, and nearly half reported increased enjoyment of the space.
Now, think about that from a guest’s perspective.
A beautiful, functional space creates a better vacation, and better vacations create better reviews.
That’s ROI you can’t calculate in square footage alone.
How are Short Term Rental Home Owners Funding Renovations?
Wondering how other owners are footing the bill?
- 54% used a home equity line or loan
- 29% used savings
- 10% used credit cards
If you’re considering a remodel, it’s worth revisiting your property’s equity or exploring financing options that let your investment work harder for you.
The 2025 Remodeling Impact Report is clear: the smartest upgrades balance guest experience, energy efficiency, and long-term resale value.
You don’t need to gut your entire cabin but you do need to invest where it counts.
At the Jason White Team, we’ve helped hundreds of clients navigate renovation decisions with an investor’s eye and a local’s knowledge.
Thinking about remodeling your STR this year?