Furnishing Budget
The planned spend to furnish and equip a rental before the first booking. A common benchmark is 8 to 12 percent of expected first-year gross revenue. It varies by size, market, and quality tier.
The furnishing budget is what you plan to spend outfitting a rental, from beds and sofas to kitchenware and decor, before a single guest checks in. For many hosts it is the largest single startup line item, so getting the number roughly right shapes the whole deal.
A common starting benchmark is 8 to 12 percent of expected first-year gross revenue, but that range varies with the property’s size, your market, and the quality tier you are targeting, so derive your own figure from comparable listings rather than a rule of thumb. Mattresses and linens are not the place to cut corners, since worn or uncomfortable bedding shows up fast in reviews.
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Related terms: Startup Cost , Replacement Reserve
Last updated . Part of the FinExplained finance glossary .