All Forum Posts by: Marc Winter

Tenants break leases.  Life is tough.  It's just a fact.

Do you think, if it came down to court, that the Judge would grant you a judgment for the remainder of the lease?  Doubtful.

Have a sit-down with the tenant, and calmly, professionally discuss the situation.  On a friendly, personal level, let them know the situation they are putting you in, and try to work out something amenable. 

Ultimately, we, as landlords, bear the burden; we have more to lose than the average tenant.  Keep a positive attitude, don't overthink it, and look at the bigger picture.  Keep moving forward!

For liability issues, a multi-partnership LLC is good. (Not so much for a solo/individual LLC). If you have many properties, consider having several LLCs.

An alternative plan:  I've been using trusts (inter-vivos, revocable land-holding trust) for decades.  when you pair that with a good umbrella policy, you can keep the target off your back (don't name the trust in your own name, duh). 

You will sleep well knowing the umbrella will mostly cover any lawsuits.  Put each property in it's own, separate trust.  Trusts are basically transparent for IRS purposes, so everything will flow through to you (trustee and/or beneficiaries).

Once you have the trust template, it's just cut and paste--your only costs are recording fees.  

Plus, no due-on-sale worries if you are using the trust for estate planning purposes, which we all are, of course.

My 'avoid liability issues rule':  don't do stupid stuff!  Follow the l/t and other laws to the letter.  Treat everyone courteously and fairly.  

Now don't worry--go get more properties!  

@Alex Quinlan, you are already heading in the right direction! So, congratulations!

1. Live-in renovations are a bear.  If there are even minor cracks in your relationship with your girlfriend, try living surrounded by building supplies, buckets, tools, dust, and inconvenience, and those cracks can break open!  It's a great experience to do a live-in reno once so you'll know you won't want a 'next time'.

2.  I'd go for a duplex to start.  Have a stable home base, and work on the other side as needed.  Also, you'll need the tax breaks owning a rental will bring, as opposed to living in a single family.

3.  At the starting phase, always be saving for the next deal.  Once the ball is rolling, you'll learn to move the money around, because keeping it in a savings account will cost you about 10% reduction in buying power every year.  You'll learn to leverage borrowed funds and keep your money moving.  You can earn about 4.25% in SGOV etf that I've found to be very liquid.

4.  Working in Real estate:  Yes!  The experience and 'inside' knowledge you'll get can supercharge your success in this business.

Let us know about your progress!  

Good Luck!

One would assume the walls of a 100 year old house are plaster.  If so, plaster and the lathe behind it can shift a bit over time and cause some cracking.

To be cautious, inspect the exterior of the property at the location of the interior cracks.  Look at the foundation and walls.  If you see some minor cracking, that would likely explain the shift and cracking inside.  Normal stuff.

This is a common occurrence.  It is unusual to find a 100+ yr old property without some plaster cracks somewhere. 

Unless you see MAJOR cracks in the exterior walls (3/4" --2"), don't sweat it.  

As for the tenant, see @James McGovern comment above.  

Do not show the property until the tenant is out and repairs have been made.  

After 40+ years of experience, I've learned that most folks have no visual imagination, so the condition they see the first view is what they believe they'll get.

Experience fact #2:  tenants say the darndest things, so avoid showing the unit with an existing tenant, esp one who is on their way out.  They will talk trash about the unit, and probably you as a landlord, too!

As others have stated above, avoid the appearance of retaliation for the son's fall.  Use documentation from the tenants downstairs about the smoke as the reason for your 30-day notice.

That said, it is not impossible that the son who fell on the stairs was impaired from de ganja, mon.  I'd consider providing the weed complaints you received to your insurance company's attorney.

Right, fees are high, but not compared to the bite the gobment will take?  All relative, I guess.

@Kevin Polite, first, congrats on your graduation!  In my semi-retirement, I've learned (surprisingly) that the world still can turn without my direct involvement ;-)

Anyway, have you considered DST--Delaware Statutory Trusts? 1031 acceptable as replacement property, and no management involvement. Here's a link: https://www.kiplinger.com/real-estate/real-estate-investing/...

Good luck, and enjoy yourself!

@Abiy Tedla,

Good question, but impossible to answer without knowing the sales prices in your market.  

Are you buying A+ or C type properties?  I often estimate my rehab costs based on the subject house and its neighborhood.

I'd estimate a kitchen in a 'C' house much differently than in an 'A' house, and so forth.

Quick and simple:  Take photos of the type of property you are buying, and show the kitchen, bath, laundry, etc., to a few contractors.  Ask them ballpark pricing on a kitchen of similar size would cost, materials and labor.

Or you can take the photos and measurements down to Home Depot and start pricing materials.  Labor costs will vary greatly depending on your area--maybe speak to some of the contractors hanging out there.  (If there are any left these ICY days!)

Tip: Do not overimprove the subject in regards to the block/neighborhood it lives in.

Yes, it's a bit of a balancing act, but do your homework/due diligence, and you should be ok.  

@James McGovern, here ya go:

Based on the available data, home staging significantly impacts the real estate market by reducing the time homes spend on the market and increasing sale prices. Below is a detailed summary of the key statistics comparing sales of staged homes versus non-staged homes, drawn from reputable sources like the National Association of Realtors (NAR), Real Estate Staging Association (RESA), and other industry reports. Note that the provided web results on home staging are relevant and will be used to inform this response, while the request for stock market data related to government spending bills is addressed separately in the prior response.

Key Statistics on Staged vs. Non-Staged Homes

• Staged Homes Sell Faster:
  • According to the Real Estate Staging Association (RESA), staged homes spend 73% less time on the market compared to non-staged homes.thezebra.comblog.remax.ca
  • RESA data from a study of 1,080 homes showed that unstaged homes averaged 184 days on the market, while homes staged after listing sold in 41 days, and homes staged before listing sold in 23 days, a 90% reduction in DOM for pre-staged homes.robinrealtygroup.com
  • NAR reports staged homes spend 33% to 50% less time on the market than non-staged homes.forbes.com
  • A 2021 survey by First Impression Home Staging indicated staged homes sell 88% faster, with 90% of staged homes selling within 2 weeks.firstimpressionhomestaging.com
  • NAR's 2023 Profile of Home Staging noted that 27% of sellers’ agents reported staged homes spent less time on the market.bankrate.com
• Non-Staged Homes:
  • Non-staged homes, particularly vacant ones, can linger significantly longer, with RESA reporting an average of 184 days for unstaged homes before staging.robinrealtygroup.com
  • Non-staged homes may face prolonged listing periods due to buyers’ difficulty visualizing the space, leading to extended decision-making.kmmrealty.com

• Staged Homes Fetch Higher Prices:
  • NAR's 2023 Profile of Home Staging reported that 20% of buyers’ agents and 20% of sellers’ agents noted a 1% to 5% increase in the dollar value offered for staged homes compared to similar non-staged homes. 14% of agents reported a 6% to 10% increase, 6% saw an 11% to 15% increase, and 3% observed a 16% to 20% increase. Only 2% noted increases above 20%.bankrate.comvirtualstaging.com
  • RESA data from 2021 showed that 73% of staged properties sold for over list price, averaging $40,000 above list price, and 85% of staged homes sold for 5% to 25% over list price.raleighrealty.comblog.remax.ca
  • The International Association of Home Staging Professionals (IAHSP) reported staged homes can sell for 17% above asking price on average.foxessellfaster.com
  • A study by Staged4more in San Mateo County showed 88% of staged properties sold over asking price, with price increases ranging from 0.02% to 45.25% (averaging $4,443,985 total above asking across projects).staged4more.com
  • Realtor Magazine and other sources noted staged homes sold for 25% more than non-staged homes.thezebra.com
  • Coldwell Banker’s survey indicated staged homes sell for 6% above asking price on average.staged4more.com
• Non-Staged Homes:
  • Non-staged homes often attract lower offers due to perceived need for updates or lack of appeal. NAR reported that sellers who did not stage faced price reductions 5 to 20 times greater than the cost of staging.nar.realtorcharterfurnituresolutions.com
  • Buyers may perceive non-staged homes as less valuable, leading to offers below asking price or negotiations for concessions.kmmrealty.com

• Staged Homes:
  • RESA data indicates that 75% of sellers who stage their homes see an ROI of 5% to 15% over asking price, with an average investment of 1% of the sale price yielding a 7.1% over-list return.nar.realtorcharterfurnituresolutions.com
  • NAR and other sources report an ROI of 8 to 10 times the cost of staging. For example, a $2,000 staging investment could yield a $16,000 to $20,000 increase in sale price.vanderblue.com
  • IAHSP data suggests ROI can range from 158% to 1194%, depending on the property and staging scope.rubyhome.com
• Non-Staged Homes:
  • Sellers of non-staged homes miss out on potential ROI, often incurring higher costs from prolonged market time (e.g., additional mortgage payments) or price reductions that exceed staging costs.robinrealtygroup.com

• Staged Homes:
  • 81% to 82% of buyers’ agents (NAR 2023) reported that staging makes it easier for buyers to visualize the property as their future home, enhancing emotional connection.bankrate.comcharterfurnituresolutions.com
  • 58% of buyers’ agents said staging positively influences most buyers’ views of the home, and 40% noted that buyers were more likely to visit a staged home seen online.charterfurnituresolutions.com
  • 83% of buyers’ agents (IAHSP) stated staging helps buyers envision living in the home.vanderblue.com
  • Staged homes create a “move-in ready” impression, highlighting key features and downplaying flaws, which can lead to quicker decisions and higher offers.virtualstaging.comkmmrealty.com
• Non-Staged Homes:
  • Non-staged homes, especially vacant ones, fail to create an emotional connection, with 90% of buyers struggling to visualize beyond what they see, per HouseHunt.com.robinrealtygroup.com
  • Unstaged homes may appear cluttered, outdated, or empty, leading to unimpressive first impressions and overlooked features.kmmrealty.com

• Staged Homes:
  • With 95% to 99% of buyers starting their search online (NAR data), staged homes with professional photos attract more clicks and showings, increasing competitiveness.vanderblue.comnar.realtor
  • 40% of buyers are more inclined to visit a staged home seen online, per NAR.charterfurnituresolutions.com
  • Virtual staging, a cost-effective alternative, enhances online appeal, with X posts claiming virtually staged homes sell 87% faster and for 15% higher prices.
• Non-Staged Homes:
  • Non-staged homes may lack online appeal, with empty or cluttered spaces deterring potential buyers from scheduling showings.reddit.com
  • Virtual staging critiques note that buyers may feel misled if the home doesn’t match online images, potentially harming perceptions of maintenance quality.reddit.com

communism - Staged Homes:

• Median Cost: $600 to $1,500 for professional staging (NAR 2022-2023), with full staging ranging from $837 to $2,924 (HomeAdvisor 2025).bankrate.comquickenloans.com
• Per-Room Costs: $500-$600 per room per month, with a 2,000-square-foot home costing $2,000-$2,400/month.charterfurnituresolutions.com
• Vacant Luxury Homes: Up to $6,800/month due to high-end furniture rentals.rubyhome.com
• Virtual Staging: Costs $12-$75 per image, significantly cheaper.reddit.com
• DIY or Agent Staging: Median cost of $300-$400 when agents stage or sellers DIY.raleighrealty.comquickenloans.com
• Non-Staged Homes:
  • No upfront staging costs, but sellers may face price reductions 5-20 times higher than staging costs, negating savings.nar.realtor
  • Prolonged market time increases carrying costs (e.g., mortgage, utilities), often exceeding staging expenses.robinrealtygroup.com

• Most Impactful Rooms (NAR and IAHSP data):
  • Living Room: 39%-47% of buyers/agents prioritize staging (91% of staged homes include it).vanderblue.comcharterfurnituresolutions.com
  • Kitchen: 30%-41% prioritize (80%-84% staged).vanderblue.comstuccco.com
  • Primary Bedroom: 36%-43% prioritize (78%-83% staged).vanderblue.comnar.realtor
  • Dining Room: 33% prioritize (69%-72% staged).vanderblue.comstuccco.com
• Least Important: Guest bedrooms (9%) and children’s bedrooms (22%).rubyhome.comraleighrealty.com
• Non-Staged Homes: Lack of focus on key rooms can lead to overlooked features, reducing buyer interest.kmmrealty.com

• Seller’s Market: In hot markets with low inventory, staged homes still outperform due to better first impressions and higher perceived value, though non-staged homes may sell under high demand.blog.remax.ca
• Buyer’s Market: Staging is critical to stand out, as competition is higher, and buyers have more options.blog.remax.ca
• Non-Staged Homes: More likely to face challenges in competitive markets, with longer DOM and lower offers due to reduced appeal.kmmrealty.com

Analysis and Insights

• Why Staging Works:
  • Emotional Appeal: Staging creates a “move-in ready” and aspirational atmosphere, helping buyers form an emotional connection, which is critical as 90% of buyers struggle to visualize empty or cluttered spaces.robinrealtygroup.com
  • Highlighting Features: Staging showcases a home’s strengths (e.g., spacious living rooms, modern kitchens) and minimizes flaws, increasing perceived value.kmmrealty.com
  • Online Presence: In a digital-first market, staged homes with professional photos attract more views and showings, critical for initial buyer engagement.vanderblue.com
• Cost vs. Benefit:
  • The average staging cost ($600-$2,924) is often offset by a 1%-25% increase in sale price, with ROI ranging from 5% to 1194% depending on the market and property.rubyhome.comcharterfurnituresolutions.com
  • Non-staged homes risk price reductions far exceeding staging costs, alongside additional carrying costs from extended market time.nar.realtor
• Limitations:
  • Data varies by market, property type, and staging scope (e.g., luxury vs. median-priced homes). For example, only 5.3% of homes priced $100K-$350K were staged in 2021, compared to 27% of $500K-$750K homes.raleighrealty.com
  • Virtual staging, while cost-effective, may mislead buyers if not followed by physical staging, potentially harming perceptions.reddit.com
  • Some sources (e.g., "73% faster" claim) lack full substantiation, though NAR and RESA data are reliable.rubyhome.com
• Practical Implications:
  • Staging key rooms (living room, kitchen, primary bedroom) maximizes impact while controlling costs.charterfurnituresolutions.com
  • DIY or virtual staging can be budget-friendly alternatives, though professional staging yields the highest ROI.virtualstaging.com

Conclusion

Staged homes consistently outperform non-staged homes in both speed and price of sale. They sell 33% to 90% faster (averaging 23-41 days vs. 184 days for non-staged) and command 1% to 25% higher prices, with ROI often exceeding costs by 5-15 times. Non-staged homes risk longer market times, lower offers, and significant price reductions, particularly in competitive markets. Staging enhances buyer visualization, highlights key features, and boosts online appeal, making it a strategic investment for sellers aiming to maximize returns.

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How about you do your own homework next time?  ; )