Staging Residential Investment Real Estate

Staging Residential Income Properties for Sale

Introduction
Staging is a crucial component of marketing residential income properties for sale. Proper staging helps showcase the property in its best condition, attracting more buyers and increasing the likelihood of achieving a higher sales price. However, staging income properties comes with unique challenges, particularly when tenants still occupy the units.

In this lesson, we’ll explore the art of staging residential income properties, the practical steps involved, and how to handle common issues such as tenant cooperation and unstageable units.

Why Staging Matters in Residential Income Property Sales

Staging is not just about aesthetics; it’s about maximizing the perceived value of the property. A well-presented property attracts more qualified buyers and makes it easier for them to envision the investment potential.

Key Benefits of Staging:

1. Increased Buyer Interest: A staged property creates strong first impressions, leading to more showings and offers.
2. Higher Offers: Staging can position the property as a premium option, encouraging buyers to offer competitive prices.
3. Faster Sales: Properties in excellent condition often spend less time on the market.

Staging Challenges Unique to Residential Income Properties

1. Occupied Units

   • Cooperative Tenants: Work with tenants to declutter and clean their units before showings. Offer incentives, such as rent discounts, to encourage cooperation.
   • Non-Cooperative Tenants: In some cases, tenants may refuse to allow staging or cleaning. In such situations:
     • Take the best possible photos of the unit as-is.
     • Focus on staging common areas or vacant units to compensate.

2. Vacant Units

   • Vacant units should be cleaned, repaired, and staged to showcase their potential. Virtual staging can be a cost-effective alternative to physical furnishing.

3. Multiple Units in Different Conditions

   • Prioritize improving and showcasing the best-condition units.
   • Use those units to set the tone for the entire property in marketing materials.

Steps to Stage a Residential Income Property

1. Evaluate the Property’s Condition

• Inspect all units and common areas.
• Identify necessary repairs, such as broken fixtures, chipped paint, or damaged flooring.
• Plan enhancements, like fresh landscaping or upgrading light fixtures, to boost the property’s appeal.

2. Deep Cleaning and Decluttering

• Perform a thorough cleaning of all areas, including units, hallways, and outdoor spaces.
• Remove personal items or clutter from tenant-occupied units (with tenant cooperation).
• Ensure kitchens, bathrooms, and windows are spotless to create a fresh, inviting look.

3. Repairs and Enhancements

• Address visible wear and tear, such as holes in walls, scuffed floors, or leaky faucets.
• Consider small upgrades, such as repainting walls in neutral tones or replacing outdated hardware, to modernize the property.

4. Virtual Staging for Vacant Units

• Use virtual staging tools to digitally furnish empty units.
• Highlight the potential for livable spaces without incurring the cost of physical staging.

5. Highlight the Property’s Strengths

• If the property has amenities like a pool, gym, or outdoor space, ensure these areas are cleaned and staged for photos and showings.
• Use professional photography to capture these features in the best light.

Handling Non-Cooperative Tenants

While tenant cooperation can enhance the staging process, you may encounter situations where tenants are unwilling to declutter or allow access for showings.

Strategies for Working with Tenants:

• Incentives: Offer gift cards, cleaning services, or rent credits to encourage tenants to participate.
• Communication: Clearly explain how selling the property benefits them, such as ensuring new ownership invests in property improvements.
• Legal Options: If tenants refuse access for showings or staging, consult the lease terms and local laws about landlord access rights.

If staging or cleaning is not possible, focus on showing other parts of the property in better condition. Use marketing descriptions to highlight the investment potential rather than relying solely on aesthetics.

Professional vs. DIY Staging

Hiring Professionals:

• Professional stagers bring expertise and high-quality furnishings to create a polished look.
• Ideal for high-value properties or when competition is fierce.

DIY Staging:

• With effort and attention to detail, DIY staging can still produce excellent results.
• Focus on cleaning, decluttering, and inexpensive upgrades like new paint or curtains.

Case Study: Staging with Tenants

Scenario: A 4-unit property is for sale, with 3 units occupied by tenants and 1 unit vacant.

Approach:

1. Vacant Unit: Virtually stage the vacant unit to showcase its potential.
2. Occupied Units: Work with cooperative tenants to declutter and clean their spaces. For the non-cooperative tenant, photograph the unit as-is and focus marketing efforts on the vacant unit and property amenities.
3. Common Areas: Stage the hallways, landscaping, and exterior to create a positive first impression.

Result: Despite challenges, the property generated multiple offers due to its overall appeal and well-presented marketing materials.

Conclusion

Staging residential income properties requires creativity, effort, and flexibility, especially when working with tenants. By focusing on the property’s condition, leveraging professional or virtual staging, and handling tenant challenges effectively, you can maximize buyer interest and achieve better sales results.

Next Steps: Review the property you’re working on and create a staging checklist that addresses both occupied and vacant units. In the next lesson, we’ll discuss creating professional marketing materials to highlight your staged property.