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Thanks Scott No Mates for your comment.
For an existing investment with historically low vacancy periods I certainly wouldn't advocate or encourage delaying the rental process. If rental demand were to weaken and you were left high and dry for a period or the property was getting a refresh, then I would seriously consider it. However for a new investment I think having the work done up front will put you ahead of the game no matter what happens to the market and the small extra upfront cost is likely to be absorbed quite quickly. Also for most, this extra cost is tax deductible anyway.
To put it in perspective, the cost of the staging is only equivalent to 3-4 days rent on an average apartment in Melbourne. I would argue that a digitally staged apartment not only would attract more interest but would also attract a better tenant. Psychologically as a tenant, if I see an empty property with bad out of focus photographs online my first impressions are that the landlord doesn't really care about the property and I either move on to the next or if I actually view it I'll try and reduce the rent. For a property which is visually appealing, the result is the opposite. The demand for the property is higher, vacancy period is reduced, I have a choice of tenant and my rent level is preserved.
I agree with you that in terms of a sale nothing beats a beautifully staged home as a preferred option, this would always be the best scenario where possible. I think where digital staging has it's merits is from a cost and convenience perspective. If the cost is an issue, then this provides a possible alternative to at the very least show what the space could look like. Sometimes this can be enough for those that struggle to visualize a space. I'm usually approached by agents after an empty property has sat on the market for several weeks and they want to renew interest in it. If I had no choice but to sell one of my own empty, I don't think I would take the risk on the potential holding costs from it sitting around.
I think where it can really add value is in the rental apartment sector where you can be up against several other similar empty apartments all vying for a tenant. I'd want to show a furnished apartment online but not with the tenants furniture in it. Showing a contemporary tidy layout of what the space could look like, I would always consider to be a better option, even if they encounter the tenants mess when viewing the apartment.
Thank you for your comment.
Just to clarify, I'm looking for a meaningful discussion on marketing techniques used in the industry which investors have had success with. As an investor myself, I don't accept that what is offered to me by the industry is the best or only approach available. With a background in design, I've looked for ways to find an edge and have developed digital staging as a result of which I have had personal success. Only a few select forward thinking agents offer this service but unless you question the norm, nothing changes.
Would really like to hear from other investors or agents who look outside the box to bring in the best returns either for themselves or others.
Thanks
