Home staging is gaining attention for its effectiveness in recruiting tenants for rental properties and selling real estate. By arranging furniture and lighting in vacant rooms to create a model room-like appearance, it can be expected to improve occupancy rates and shorten the time required to sell the property. This article explains how home staging works, its advantages, disadvantages, and points to note when introducing it.
What is home staging?
Home staging is a service in which a professional arranges furniture, lighting, plants, etc. to create an attractive space in a house that is being sold or is seeking tenants, etc. It started in the U.S. in the 1970s and is now becoming popular in Japan as a method to address vacancies and sales.
Data shows that properties with this service shorten the time required to sell and are more likely to sell for approximately 5% more than the asking price, compared to properties without this service. Owners are increasingly adopting this method for rental properties as well.
Why is home staging so effective?
The effectiveness of home staging lies in "visualization of living image. While it is difficult to visualize what life will be like after moving into a vacant apartment with a bleak view, a stylishly coordinated space will make people want to "live here. Photos of staged apartments on real estate portal sites are also effective in differentiating them from other properties.
What are the advantages of home staging for rental properties?
Increased appeal on real estate portal sites
The first impression of the photos will be greatly improved, and inquiries from prospective viewers will increase. Especially on portal sites such as SUUMO and HOME'S, the quality of the photos directly affects the number of views.
Leads to shorter vacancy periods
Creating a good impression at the time of a preliminary inspection will shorten the time until a contract is signed. The longer the vacancy period, the greater the opportunity loss, so early contract signing leads directly to improved profitability.
Rent maintenance and improvement can be expected.
By increasing the attractiveness of the property through staging, it becomes easier to secure tenants without lowering rent. Even older properties can offer the value of "living in style.
What are the disadvantages of home staging?
Costly.
The cost of home staging ranges from 50,000 to 300,000 yen per room (depending on the furniture rental period). Cost-effectiveness must be simulated in advance.
Effectiveness cannot be guaranteed.
In some cases, if there are fundamental problems with the location or the property (station distance, age of the building, obsolescence of facilities), staging alone may not solve the problem. It is important to combine it with other improvement measures.
Mismatch with target
Choosing interiors that do not match the target demographic of tenants can have the opposite effect. Staging for families in a property for singles will not resonate.
What should be considered when implementing home staging?
- Clarify the target demographic: Establish a persona of the tenant and choose a style that fits that persona.
- Hire a professional stager: It is more effective to leave it to a professional than to do it yourself
- Professional photography: Ask a professional photographer to take photos after staging
- Calculate cost-effectiveness: Estimate the return on investment based on the expected shortened vacancy period and rent
- Combination with other vacancy countermeasures: Consider reviewing security deposits and key money and combining with remodeling
Who are the main companies offering home staging services?
The following is a list of major companies that provide home staging services in Japan.
| Company Name | Characteristics |
|---|---|
| Home Staging Japan | Japan's first company specializing in home staging. Supports both sales and rentals. |
| Samantha Home Staging | Operating mainly in Tokyo and Osaka. Strengths in proposing styles for different targets. |
| Virtual staging companies | A method of arranging furniture using computer graphics instead of actual objects. Can be introduced at low cost. |
For general measures against vacancies in rental properties, consultation with management companies is also effective.
Frequently Asked Questions (FAQ)
How cost-effective is home staging?
Generally speaking, if the vacancy period can be reduced by one to two months, the investment can be recovered. For a property with a rent of 70,000 yen, a two-month reduction in vacancy would result in an increase in income of 140,000 yen, which would exceed the cost of staging.
What is virtual staging?
It is a technique in which CG furniture is composited onto a photograph of a vacant room, rather than actual furniture being brought in. The cost is inexpensive, ranging from 10,000 to 30,000 yen, and is effective as a photo for listing on portal sites. However, care should be taken to avoid gaps during the viewing process.
Can I do home staging myself?
Basic coordination is possible, but it tends to be more effective if you hire a professional stager. This is because there is a difference in photographic quality and spatial staging expertise.
Can staging furniture be transferred to tenants?
Normally, we do not transfer the furniture to tenants as it is a rental item. However, in some cases, when the property is rented out as a furnished property, the purchased furniture is installed as is.
