How to Build a Sustainable House for Airbnb

Key Takeaways:

• Sustainable vacation rentals are increasingly popular among travelers. Unique, eco-friendly designs can command high ADRs and occupancy rates.
• The startup costs versus ROI for sustainable STRs vary significantly, with different eco-friendly property types offering distinct advantages in terms of earning potential and environmental impact.
• Location, size, orientation, layout, and the choice of sustainable building materials are crucial in developing a sustainable vacation rental. Energy and water efficiency play a major role in reducing the property's environmental footprint.
  

Today’s traveler is concerned with environmental sustainability. They still want a great stay at their short-term rental (STR), but they want it without having a massive carbon footprint. One survey by Booking.com found that 74% of respondents showed an interest in more sustainable travel choices—and those numbers are even higher among Millenials and Gen Z. 

For property owners, this presents an exciting new opportunity. Sustainable homes not only help offset carbon emissions, they can also increase earning potential—a win-win for any investor. Let’s talk about how to build a sustainable house (or modify an existing home to be more eco-friendly) and create a top-tier guest experience.

What Is a Sustainable Vacation Rental?

At its core, a sustainable vacation rental embraces green practices, from energy-efficient appliances to eco-friendly building materials. By choosing a sustainable vacation rental, travelers can enjoy guilt-free getaways while minimizing their carbon footprint and promoting the local community’s well-being. 

We use ‘sustainable’ and ‘eco-friendly’ interchangeably throughout this article. Many of our suggestions cater to aspiring STR investors who are looking to purchase an existing sustainable property or build one from scratch. The section on How to Build a Sustainable House is written for these types of readers. We also recognize, however, that there are many Airbnb hosts who already have properties and want to retrofit and/or make minor changes to make their rental homes more environmentally friendly. The majority of our strategies for water and energy efficiency, waste management, and additional tips are applicable to current homeowners with already-established STR listings . 

Not All Sustainable Vacation Rentals Are Equal

There are different types of sustainable STRs, and each has a different earning potential. The Skywalk Treehouse and Shenandoah Yurt stand out as one-of-a-kind rentals that incorporate nature into their design, and their eco-friendly emphasis doesn’t stop there. These rentals also offer EV chargers, rain showers, smart home climate control systems, and e-bike rentals. Skywalk Treehouse’s energy-efficient features command a $1,200 average daily rate (ADR) and 66.37% occupancy rate. 

However, you don’t need to pursue construction suspended above the ground when considering how to build a sustainable house. There are easier paths to sustainability than building a treehouse. 

If you’re an STR investor interested in building a sustainable property from the ground up, consider the start-up costs in relation to your potential return on investment (ROI). Building something like the Skywalk Treehouse may command a higher annual revenue potential than, say, a shipping container, but the building costs are likely much higher for the former.

Take a look at how different eco friendly STRs perform in regards to ROI: 

How to Build a Sustainable House

A sustainable house harmonizes with nature while minimizing its environmental footprint. Key factors that contribute to a home’s sustainability range from location and size to layout and choice of building materials. 

Location 

The first step in how to build a sustainable house involves location scouting. Help guests reduce car travel by opting for areas with easy access to amenities and transportation options. Choose sites with ample sunlight to take advantage of passive heating and cooling benefits. The right climate and weather patterns will also help to reduce energy usage on HVAC systems. 

Size 

“Build less” is a good starting point for how to build a sustainable house. A compact floor plan can reduce environmental impact by requiring less energy to heat and cool the living space. By focusing on space efficiency, you save money on energy bills while reducing your STR’s reliance on fossil fuels. 

According to AirDNA data, there are over 11,000 tiny home STRs listed on booking platforms like Airbnb and Vrbo and over 500 shipping container STRs.

Orientation 

The orientation of your sustainable house helps to harness natural light and warmth efficiently. Position the living room and bedrooms where they receive ample sunlight during the day. South-facing windows let in maximum sunlight, requiring less heat in cold climates. Window placement and shading elements can also minimize air conditioning in warmer climates. 

Layout 

Efficient home layouts save energy and maximize comfort. Open floor plans promote the natural circulation of fresh air throughout the home. Strategically placing rooms and amenities can also enhance energy efficiency. For example, consider layering spaces according to temperature needs. Place rooms that require more warmth, such as the living room, towards the center of the house and less used spaces, such as a garage or pantry, at the periphery to create a natural insulation layer. 

Sustainable Building Materials

Let’s talk about materials - how to build a sustainable house, literally. 

Locally sourced construction materials reduce carbon emissions related to their transport and support the local economy. They also promote sustainable construction techniques. Natural materials like bamboo, reclaimed wood, and straw bales have a minimal environmental impact and promote better indoor air quality. In addition, recycled materials can minimize waste while conserving natural resources. 

Local Materials

Start by researching and compiling a list of local suppliers and manufacturers of building materials. Local directories, construction associations, and online platforms can be valuable resources. Check out local salvage stores and reclamation yards. They often have a wide variety of materials from deconstructed buildings, offering everything from bricks and wood to fixtures and fittings at a lower cost.

Natural Materials

Choose natural, renewable, and biodegradable building materials.

Good options include:

• Wood: Forest Stewardship Council (FSC) certification is a key indicator of responsibly harvested timber. Wood's versatility and warmth make it ideal for a wide range of applications, from structural frameworks to interior finishes. Plus, its natural insulation properties can enhance a building's energy efficiency.
• Stone: As a naturally occurring material, stone requires minimal processing and no chemical treatments. Stone's thermal mass contributes to energy efficiency by moderating indoor temperatures, keeping buildings cooler in summer and warmer in winter. 
• Clay: Used in various forms, such as bricks, tiles, and rammed earth, clay provides significant energy savings due to its ability to regulate indoor humidity and temperature. This natural material promotes a healthy indoor environment, free from toxins and allergens.

These materials have a minimal environmental impact throughout their lifecycle.

Recycled Materials

Incorporate recycled materials, such as reclaimed wood, recycled metal, and recycled glass, into your construction projects to reduce waste and conserve natural resources.

Provide Natural Insulation

Use natural insulation materials such as cellulose, wool, and cork to enhance energy efficiency, improve indoor comfort, and reduce heating and cooling costs.

Low-VOC Paints and Finishes

Use low-VOC (volatile organic compound) paints and finishes to minimize indoor air pollution and promote healthier indoor environments for occupants.

“Built to Last”

Sustainable living means reducing the need for frequent repairs and replacements. Choose durable building materials and construction techniques that ensure your rental’s longevity and resilience. 

Energy Efficiency

Reducing energy consumption is an essential part of minimizing your sustainable home’s environmental footprint. It also helps reduce your energy bill. 

Energy-Efficient Insulation

High-performance insulation materials like spray foam insulation and rigid foam boards minimize heat loss to maintain a comfortable temperature.

Sealed Windows and Doors

Windows and doors need to be properly sealed to prevent air leakage and improve energy efficiency.

Energy-Saving Considerations for Windows and Doors

Windows and doors with low U-factor and solar heat gain coefficient (SHGC) ratings can minimize heat transfer and maximize natural light penetration.

Energy Star Appliances

Energy efficient appliances—refrigerators, dishwashers, and washing machines—are designed to reduce energy consumption and lower utility bills.

LED Lighting

Replace traditional incandescent bulbs with energy-efficient lighting (such as LED lights or compact fluorescent lamps).

With LED lighting, you’ll:

• Save energy
• Reduce electricity costs 
• Extend the lifespan of artificial light bulbs

Energy-Efficient Heating and Cooling Options

Energy-efficient heating and cooling systems—such as air source heat pumps, geothermal heat systems, and ductless mini-split units—maintain comfortable indoor temperatures while minimizing energy usage.

Renewable Energy Options

Solar panels, wind turbines, and hydroelectric systems can generate clean and sustainable electricity for your home's energy needs.

Solar Hot Water and Tankless Hot Water Systems

Solar hot water systems harness the sun's energy to heat water for domestic use. This system typically consists of solar collectors (usually mounted on the roof) and a storage tank. 

Also known as on-demand hot water heaters, tankless hot water systems heat water directly without the use of a storage tank. When a hot water tap is turned on, cold water travels through a pipe into the unit, where it is heated by either an electric element or a gas burner. They can reduce water heating bills by up to 30% due to their efficiency in only heating water as it's needed. 

Both of these systems heat water efficiently and lower water heating costs in your sustainable house.

Water Efficiency

Your sustainable house should conserve water. Optimizing water efficiency will help to conserve this precious resource and contribute to a more sustainable future.

Rainwater Harvesting

Rainwater harvesting systems, such as rain barrels, can collect and store rainwater for various household uses. The water can be used to flush toilets, wash clothes, and support drip irrigation systems.

Composting Toilet or Low-Flow Toilet

Composting toilets or low-flow toilets help to minimize water usage and promote nutrient recycling.

Water-Efficient Faucets and Showerheads

Reduce water flow by investing in high-performance water-efficient faucets and showerheads.

Water-Efficient Washing Machine

Opt for a water-efficient washing machine that uses less water per cycle. This will save water and energy while also ensuring your laundry comes out clean and fresh.

Water-Efficient Irrigation Practices

Implement water-efficient irrigation practices, such as drip irrigation systems and soil moisture sensors that minimize water waste and optimize plant health.

Water Recycling and Gray Water Management Strategies

Explore water recycling and gray water management strategies to reuse wastewater for non-potable purposes, such as landscape irrigation and toilet flushing.

Waste Management

Implementing sustainable waste management practices can reduce waste while conserving resources in your home.

Washable Over Disposable

Choose washable alternatives to disposable supplies to reduce waste and environmental impact. Cloth towels and napkins, for example, are better than their paper counterparts.

Refillable Dispensers

Reduce single-use packaging waste by installing refillable dispensers for household essentials, such as soap, shampoo, and cleaning products.

Water Filter Attachment or Filter Jug

Use a water filter attachment or filter jug to purify tap water. Avoid single-use plastic water bottles wherever possible. 

Composting

Implement a composting system to recycle organic and food waste into nutrient-rich compost for your garden. This will save on waste that goes to landfill.

Recycling

Set up a comprehensive recycling program to separate recyclable materials from household waste.

Other Tips for a Sustainable Vacation Rental

Sustainability goes beyond construction of the rental property itself. Other key steps in how to build a sustainable house revolve around your ongoing purchasing habits and host practices. 

Create a Roadmap to Sustainability with EnviroRental

According to CEO and founder of EnviroRental, Bob Garner, “Sustainability in short term rentals, like the wider tourism industry, is no longer a niche or a nice to have... This creates an opportunity for short term rental businesses to tap into the fast growing demographic and do the right thing for the guest, the planet and their business. EnviroRental, a not-for-profit, exists to help our industry adapt and we offer all our resources for free to those hosts and property managers who are ready to start or progress on their sustainability journey.”

EnviroRental gives businesses all the tools, information and resources that they need to build ethical tourism strategies and tactics into their operations. Check out EnviroRental’s Roadmap to get started with an action plan and checklist towards sustainability in your vacation rental.

Offer Eco-Friendly Amenities

Enhance the sustainability of your vacation rental by offering eco-friendly amenities that align with your environmental values. 

Explore options that cater to environmentally conscious guests, such as:

• Bicycles
• Electric vehicles/electric vehicle charfers
• Organic chef services

Buy Local

Sustainability is all about locally sourced materials. Buy construction materials and furnishings locally. Supporting local artisans and businesses will reduce the carbon footprint associated with transportation and logistics. Consider highlighting local and organic products in a guest welcome basket.

Partner with Local Businesses

Forge partnerships with local businesses and suppliers to promote sustainable practices and foster community engagement. Collaborate with eco-conscious vendors to offer authentic and environmentally friendly experiences to your guests that highlight the region’s beauty and diversity

Check the Local Building and Energy Codes

Take time to learn about building and energy codes to make sure that you’re in line with local requirements. Understanding the legal framework that governs sustainable construction will be crucial to obtaining the necessary permits for your project.

Get Plans Approved Before Building or Renovating an Existing Home

Streamline the approval process for your sustainable housing project by obtaining pre-approval for your architectural plans. You will need approval from the right authorities before any construction or renovation work can begin, and sidestepping this process can have major consequences. 

Market Your Sustainable Vacation Rental Strategically

Position your sustainable vacation rental as a desirable eco-friendly destination through strategic marketing initiatives. You’ll attract environmentally conscious travelers seeking responsible travel options by highlighting green features and sustainable practices. Here are a few marketing ideas to get you started:

• Leverage Social Media for Storytelling: Share your vacation rental's journey towards sustainability. Use before-and-after photos, share insights into the eco-friendly practices you've implemented, and highlight local wildlife or natural scenery.
• Partner with Eco-Friendly Brands: Collaborate with brands (ideally local) that align with your sustainability values. Offer these products in your rental and showcase these partnerships in your marketing materials.
• Implement a Sustainable Loyalty Program: Create a loyalty program that rewards guests for choosing sustainable options, such as returning guests bringing their own reusable items or choosing longer stays to reduce cleaning and laundry frequencies. 

Plan Your Sustainable Vacation Rental with Data

Data is crucial to making informed decisions about location, amenities, and pricing strategies to optimize your property's eco-friendly appeal and maximize profitability. 

AirDNA can show you the different types of sustainable STR options in your area, how the competition is pricing similar offering, and more.