All Topics / Value Adding / Staging a Property for Rent

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  • Profile photo of The ImmigrantThe Immigrant
    Member
    @the-immigrant
    Join Date: 2008
    Post Count: 73

    Hi All.

    I was searching the forum if someone has staged a property before renting it out but all I can find has something to do with staging prior to selling.

    I would like your opinion on this one. We have a two-bedroom house that we are hoping to be completed by next month. We are renting this out, and this is our first IP. Our plan is to get a good valuation and refinance it so we can get an LOC for the next investment property. Although I have not yet done the numbers, but will staging the property increase the value of the property and the rent as well? Is it worth doing it. I hope to get feedbacks most especially from someone who has done what we are planning to do.

    Thanks.

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069

    Valuers will say that they look past this – but in my experience, a well presented, uncluttered property can be helpful when getting a revaluation done.

    I just had an IP revalued 6 months ago and it came in a little short. I suspected it was because of the tenants living in the property at the time – they were quite messy and the house didn't present well.

    Once they moved out, I organised another reval. It had gone up $20k – and there's been no growth in the area so I'm assuming the way it was presented by the new tenants played a part.

    That said, I probably wouldn't bother with paying a company to provide the staging service though – especially if it's not for selling the property.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of IP FreelyIP Freely
    Member
    @ip-freely
    Join Date: 2008
    Post Count: 353

    I have taken advantage of staging furniture left over before settling but it can be a costly exercise. Go to fantastic furniture & grab one of their cheap packages, cheaper than hiring.

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069

    Do you live near the IP or have friends/family nearby that could lend some furntiture for a short period? Is there an IKEA nearby?

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    mattnz
    Participant
    @mattnz
    Join Date: 2007
    Post Count: 574

    Depending on the market it is in, you could receive significantly higher rent plus depreciation benefits from renting it out fully furnilshed.

    In Gladstone for example, it can add 30-50% to the rental return. I don’t see alot of point staging it if you aren’t going to keep the nice furnishings in the property.

    Profile photo of mattstamattsta
    Participant
    @mattsta
    Join Date: 2011
    Post Count: 604

    Yeah, I'd suggest to rent it out fully furnished. It can make things easier for you and the increased rental returns can be worth it

    Profile photo of maree_bradrossmaree_bradross
    Member
    @maree_bradross
    Join Date: 2007
    Post Count: 401

    If you can find a Property Manager who can be bothered with a furnished place. Takes a lot of effort as everything has to be itemised on condition report with photo's. Unless it is the norm ie. student accom

    Profile photo of The ImmigrantThe Immigrant
    Member
    @the-immigrant
    Join Date: 2008
    Post Count: 73

    Thanks guys for the reply.
    Where the property is located I don't think there is a demand for furnished rentals. Since it is a small house, we would probably stage it ourselves with a few furnitures.

    Profile photo of The ImmigrantThe Immigrant
    Member
    @the-immigrant
    Join Date: 2008
    Post Count: 73

    Also, would anyone recommend a property manager here in Melbourne that can manage a property located in northern suburb. I was considering RUN property and Metro Property managment. Any comments on these two.

    Profile photo of JpcashflowJpcashflow
    Participant
    @jpcashflow
    Join Date: 2007
    Post Count: 575

    Hi Novusprimo,

    I would recommend going on http://www.realestate.com.au.
    Look at houses for lease in the area .A good way to gauge if a property manager is on the ball is to call the agent and pretend that you are looking at leasing a home from them and see how they respond and treat you.

    Also stagging a home is very important.  Plus is also shows the potential tenant what your standards are.

    But you dont need to get to carried away as long as its neat, everything works and the price is good you will have no problem.

    Jpcashflow | JP Financial Group
    http://www.jpfinancialgroup.com.au
    Email Me | Phone Me

    Your first port of call in finance :)

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