WHY AVERAGE INTERIORS KILL YOUR PROFIT - AND WHAT TO DO INSTEAD.
Whether you're just getting started or already in the game, one thing is certain:
At some point, you'll need to put together interiors that make your property stand out.
Because in today’s crowded market, average isn’t enough.
Not if you want to stay ahead of the competition and raise your income.
Here’s the truth no one tells you:
It’s not the amount you spend that boosts your return.
It’s how strategically you plan what buyers (or tenants) will emotionally connect with.
And that’s where product differentiation comes in.
WHAT’S “PRODUCT DIFFERENTIATION” - AND WHY IT MATTERS IN PROPERTY
If you’re serious about flipping or renting for profit, you need to start thinking of your properties as products.
Not just buildings. Not just “deals.”
But products with a value proposition.
In any competitive market, most of the competition clusters around the average price point.
For example: if the average rate for a serviced accommodation is £81/night, most listings will hover around that.
That’s where it’s crowded.
That’s where your margin shrinks.
But go above that average—charge a higher nightly rate, or ask for more rent—and you face less competition.
If the property looks the part, people will pay more.
The key is making your property feel different—and feel worth it.
And that doesn’t require a massive spend.
It requires clarity, planning, and purpose.
For example, if the average price of a Serviced Accommodation is £81 the majority of properties will sit within that range, as you can see from the graph below (which is taken directly from AirBnb).
The areas of lesser competition will fall on the two sides of the graph.
If you were to stay below the average price mark, as a property investor, you would struggle to make a profit. The only option is therefore to try and stay above the average price point and increase your margin of profits.
HUMANS DON’T BUY WHAT THEY NEED—THEY BUY WHAT THEY WANT
This is especially true with high-value purchases like homes or rental agreements.
The decision is emotional first, then rational.
That’s why the best way to outperform your competition isn’t to match their offer.
It’s to elevate your product, to create a space that makes people feel something.
Big companies do this all the time.
Think Apple. Think La Mer.
And in property?
Student accommodation provider IQ in Bristol rents its rooms for over £200 more per month than its competitors.
Why?
Not because they built more expensive buildings.
But because they planned better interiors.
Their rooms are designed to feel more desirable.
More liveable.
More intentional.
And tenants notice.
This approach is followed by big companies like for example IQ - one of the biggest student accommodation provider in the UK. In Bristol for example they offer their rooms at top prices and are fully booked (this is internet sourced information and it is publicly available).
Still in Bristol, another student accommodation provider offers same type of accommodation but at much cheaper prices, as shown below.The two studio propositions are very similar, double beds, kitchen area, desks...
However IQ has paid lot more attention to the interior design of their products and are therefore charging a premium price. But, have they spent a lot more to build their accommodation? Is is their investment that is forcing them to have to increase the price to their tenants? However IQ has paid lot more attention to the interior design of their products and are therefore charging a premium price. But, have they spent a lot more to build their accommodation? Is is their investment that is forcing them to have to increase the price to their tenants? Do you believe the price of IQ kitchen was so much more than the price of the competitor below? And the flooring? And the colour of the paint on the wall? Do you think that overall IQ Bristol has spent so much more to justify an increase in rental income of over £200pcm per room (over 2K per room per year)? No they have not...
SO WHAT DOES THIS MEAN FOR YOU?
You have the same choice on every project:
Stick with “standard” finishes and hope the numbers stack up
Or invest a bit more into making the space feel better planned, better styled, and better suited to your buyer or tenant
In many cases, the cost difference is around £300 per room.
Paint colour, lighting choice, layout clarity, small styling tweaks.
That’s it.
But that £300 can easily translate into £200/month more in rent, or a stronger sale price on your flip.
That’s not theory. That’s proven, repeatable strategy.
You’ll recoup your spend in 2 months, and continue to profit well beyond that.
Average room for rental advert in Bedford.
Flat presented paying attention to the design and increase your price, and this investor knows… This allows them to increase their price as they have increase the desirability of their rooms.
YOU DON’T NEED TO SPEND MORE. YOU NEED TO SPEND BETTER.
Below are two examples:
Same type of property. Same number of bedrooms.
But different emotional impact.
And that difference drives price.
When you create spaces that are easy to live in and feel considered, buyers and renters respond.
They trust the space. They value it more.
And in return, you gain:
Higher income
Stronger demand
A better reputation
IT’S NOT JUST ABOUT LOOKS - IT’S ABOUT EXPERIENCE
When a lounge doesn’t work for watching TV, or the kitchen feels cramped and awkward, people notice.
Even if they can’t explain why.
That friction becomes hesitation.
And hesitation costs you.
Your renovation should make the space feel easy, clear, and enjoyable to use.
That’s not fluff. That’s what sells.
TO WRAP UP
Product differentiation in property means offering something better, not by spending loads more, but by planning with more purpose.
And when you get this right, it’s not just your margins that grow.
It’s your confidence. Your credibility. Your ability to attract investors and buyers who value what you offer.
It’s what we teach inside FLIPIT, because it’s what flips your renovation from “fine” to financially smart.