Nicole Richie's Latest Project: Her Backyard Oasis

By K.C. Blumm

08/27/2013 at 08:40 AM EDT

Nicole Richie in her newly update backyward

Justin Coit for Domaine Home

When Nicole Richie decided to update the backyard of the home in L.A.'s Laurel Canyon that she shares with husband Joel Madden and their two kids, she knew she wanted to create a space that was a reflection of her laid-back style.

"Our house is the one people come to, to hang," Richie, 31, tells Domaine Home.

"I like people to come to my house and feel like they can do whatever they want."

The redesign began with picking the right colors – the House of Harlow 1960 designer settled on turquoise, yellow and black – and then chose a collection of vintage and modern industrial pieces and lots of lanterns to create a "relaxed and eclectic" feeling.

The result is an inviting space that doubles as a perfect spot for al fresco dinner parties or a playground for her daughter Harlow, 5, and son Sparrow, 3 – it even includes a hand-painted canvas teepee.

Just don't use the B-word to describe it. Says Richie: "I hate the term bohemian."

Nicole Richie and Joel Madden's backyard

Justin Coit for Domaine Home