Staging contracts in the home staging business provide clarity, protection, and accountability for both stagers and their clients. According to the 2023 State of the Home Staging Industry Report by RESA®, a staggering 86% of stagers utilize formal agreements for occupied staging, and an even higher percentage (94%) rely on contracts for vacant properties.
Among those surveyed, 27% wrote their own staging contracts, 21% received them from an education provider, and 10% obtained agreements through Villanova Insurance Providers.
In this article, we’ll explore the importance of staging contracts, drawing insights from real-life scenarios that emphasize their necessity. Each story highlights the potential challenges that can arise without detailed staging agreements, such as delayed payments or unauthorized use of work, and the valuable lessons learned from these experiences.
The Case of Last-Minute Payment: Meet Sally
Sally, a dedicated stager, faced a major challenge when a realtor client delayed the agreed-upon payment until after the staging was complete. This disrupted her cash flow and hindered her preparations for the next project as she awaited compensation for her services.
Lesson Learned: Sally’s experience underscores the importance of including a clause in staging contracts that clearly defines “upfront payment” as requiring payment a specific number of business days before the staging day. For instance, “The client agrees to provide upfront payment equivalent to 70% of the total staging fee no later than five business days prior to the scheduled staging date.” Setting this clear expectation helps stagers avoid unnecessary delays and ensures smoother project execution.
The Unauthorized Use of Work: Introducing Emma
Emma’s heart sank when she discovered her stunning staging photos used online to promote different units within the same development by a builder she never worked with.
Lesson Learned: It’s crucial to include a clause addressing ownership and usage rights of photos and all intellectual property created for the project. An example clause might be: “The stager retains full ownership and usage rights of all intellectual property created for the project. The client is granted limited usage rights solely for the purpose of marketing the property during the listing period.” This protects your creative work from unauthorized exploitation and ensures control over your brand image.
The Extension Exploit: Meet Tom
Tom, eager to please a client, agreed to extend a staging contract at a discounted rate. However, this gesture backfired when he was pressured to provide additional staging days for free.
Lesson Learned: The staging contract should clearly outline the process for extending the staging period, including any associated fees. A suitable clause might say: “Any extension of the staging period beyond the agreed-upon end date shall be subject to a written agreement between the stager and the client. This includes notification requirements and any applicable fees.” This ensures fair compensation for your services and prevents misunderstandings.
The Damaged Décor Dilemma: Introducing Chris
Upon de-staging a property, Chris, a seasoned stager, discovered damage to several prized pieces of furniture. Unfortunately, with no pre-existing clause outlining compensation for such occurrences, he was left to absorb the financial burden.
Lesson Learned: Including clauses in staging contracts to address potential liabilities is essential. Contracts should establish a process for documenting pre-existing wear and tear, as well as outline a fair compensation plan for any damages incurred during the staging period. For example: “The client agrees to conduct a pre-staging inspection to document any pre-existing wear and tear on the property. In the event of damages occurring during the staging period, the stager shall be compensated for repair or replacement costs, with the process for assessing and resolving damages detailed in this contract.”
Pro Tip: Having insurance for home stagers is an additional defense in case the homeowner is unable or unwilling to pay for repairs.
These fictional scenarios demonstrate the invaluable role of staging contracts in preventing risks and resolving disputes. Stagers should regularly review and update their contracts and seek guidance from legal professionals to ensure comprehensive coverage and protection for all their projects.
The Support and Advancement Offered by RESA®
The Real Estate Staging Association (RESA®) has been supporting stagers and advancing professionalism within the industry for 17 years. As a trusted trade association, we provide valuable resources and benefits to all our members. For an annual fee of $190, RESA® members gain access to five professionally drafted staging contracts that address the challenges discussed in this series. These contracts cover various aspects of staging agreements, ensuring stagers have the legal framework to protect their business interests.
RESA® participants also benefit from a wealth of educational and training materials, networking opportunities, and industry insights. These resources equip stagers with the tools needed to handle complicated contractual negotiations and advance their careers.
We invite stagers to take a proactive step toward protecting their business and advancing their careers by joining RESA®. By doing so, you become part of a supportive community dedicated to shared learning and professional growth. Join RESA® today to unlock the full potential of your staging business and secure a brighter future tomorrow.
RESA® Members: Click here to get your attorney-written contracts
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