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Learning from the experts: Short term property manager

1/7/2021

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In our new series, we chat with a variety of experts and gain some insight into their industry.

Interview with Coleman Washbrook of Raising Standards -- Part 3

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Our interview with Coleman Washbrook, owner of Raising Standards based out of Edmonton, Alberta, took place during the Covid-19 outbreak. In the final installment of our interview, we talk about how he has been able to continue generating income for his clients during Covid-19, and the direction he sees the short-term rental industry taking post-Covid. ​
What has your experience been since the Covid-19 outbreak started?

Initially, like everyone else, I experienced a tremendous flood of cancellations. We had over 150 cancellations within a five day period. But that allowed us to transition to mid-term rentals, which to me means anywhere from ten days to 90 days.

I’ve also seen a lot of last minute bookings from locals who want to have a place to party and have a good time -- which has created a lot of other unique challenges! But that’s where high quality management and a ton of experience saves big time.

So has your occupancy rate decreased? 

Actually, since covid hit, my portfolio that I manage has been just under or just over 80% occupancy during the pandemic when people are supposedly not travelling or going anywhere. So we’re right on target for our occupancy! 

Jan, Feb, and March is slow season, with a typical short-term strategy trying to get people in for 2-3 days. But with covid, we kept or reduced our slow season rates but went into longer stay bookings which filled our calendars and increased our occupancy.

How were you able to insulate your clients from some of the negative impacts of covid-19?

Our primary strategy has been to change from short-term to mid-term bookings. There’s a lot of different people who need those mid-term stays. 

We have people who live in other countries who just happen to be here and they can’t go home. We have people who are here because they are about to give birth, so they’ve come to the city [Edmonton] for 3 to 4 weeks to be close to the hospital and ready to go. There’s also been workers due to a ton of pipeline construction and those guys, not all of them live in Edmonton, so there’s a lot of out of town workers who are here and they’re busier than ever. 

So there’s still a lot of interest but the short-term demand isn’t as high as what it normally was. By not having that demand of short term stays filling up my calendar a month or two in advance, it’s allowed opportunities for these people who are pregnant to book for 4 weeks, or to allow the guys working on the pipeline to book 2 or 3 months, or these people who can’t fly home or who are flying back to Canada to book a few weeks. Our calendars are essentially open to where we can actually host those stays. 

There’s a part of me that thinks that demand was always there but my strategy and how we marketed, priced and listed our properties meant we were too booked to even attract or accommodate those people. It wasn’t even an option.
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Do you think you’re going to carry forward some of this mid-length booking strategy even after the covid outbreak ends?

I think this strategy will become a part of my tool belt. For some properties I manage, this is the ideal strategy, and for others it isn’t. 

For example, for a downtown condo within walking distance to Rogers Place, this mid-term strategy isn’t the most ideal over the next ten years. My assumption is that condo will attract people going to festivals and concerts, so that strategy will be different. 

However, for a 1 bedroom walk-out basement suite in the southwest of Edmonton, this is an amazing strategy. It provides an affordable, clean, and functional place to stay for people who are looking for longer terms. And for that homeowner, it provides them higher than normal [long-term rental] income where their property is kept in better condition, and they’ve got more flexibility on the people coming and going instead of a long-term renter who may not be a good fit but are down there for a year’s lease.

What do you think the short-term rental industry will look like post-covid? Will things return to status quo or will things be different? Or, like you, will other people change up their strategy a bit?

When covid hit, Airbnb decided to 100% refund all guests who could not travel, even if the hosts of those properties had strict cancellation policies. Homeowners choose a strict cancellation policy because they want to protect their income as much as possible, and when Airbnb overruled those hosts’ decision to have a strict policy and pulled money out of their account, a lot of hosts felt very violated and out of control.  They also felt they had built their investment structure based on something they had no control over, so that has changed how things will play out moving forward.

A lot of hosts have lost their trust in Airbnb and are creating their own website or going to a different website or moving their business to different areas so they can protect their asset and have more control over them, so that in itself will change how the industry works and operates. So will it go back to status quo? I don’t think so. Even in regards to travelling, it’s going to take probably 1 to 2 years or even 3 to 4 years to return to normal, depending on how long it takes for the economic recovery to happen. It’s going to take time.

What about Airbnb rentals themselves? What will change inside the rentals in regards to furnishings and amenities?

What we’re seeing right now, which makes a lot of sense, is a lot of people are working from home and I think that is a global standard that’s changed. Companies that have been on the fence about working remotely were forced into it when covid hit. Now they’re months into it, and their business models are operating differently, families are operating differently. The function and flow of the world has been forever affected. 

But people’s needs within the property are different than what they were before and that’s where the change is. People who travel for work will choose to stay in an Airbnb [instead of hotels] for cleanliness or separation from multiple travellers. They will need a place to stay and function and still have space to comfortably work. So I think there are places that may put more emphasis on office or desk spaces within their units to accommodate more people working remotely.

How do you think Airbnb hosts will be able to succeed in the new, post-covid world?

The people who can anticipate the needs of the new kind of traveller by connecting with them and consistently and continually asking them, “what do you need more of during your stay with us?” --  those people will be the top 10-20% who are doubling their income. It boils down to 80/20 principle in regards to furniture, amenities and location. 

If you provide the things that people are willing to pay for, that’s the winning formula.


Coleman Washbrook manages 35 listings in the Edmonton area and can be contacted via email (coleman@raisingstandards.co) or Facebook (@RaisingStandardsAB). 

​
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Learning from the Experts: Short term property manager

8/10/2020

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In our new series, we chat with a variety of experts and gain some insight into their industry.

Interview with Coleman Washbrook of Raising Standards -- Part 2

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In Part 1, Coleman Washbrook, owner of Raising Standards based out of Edmonton, Alberta, discussed how and why he started managing Airbnb properties. In Part 2, he’ll give us some tips on how to uniquely furnish your Airbnb rental to maximize your revenue. Don’t be nervous, unique furnishings doesn’t mean a Star Wars themed bedroom!
What are some basic, must have items or features an Airbnb should have?

For the very, very basics, you want it to be so that someone can bring their clothes and groceries and live in your place for seven days. 

What features make a property a successful Airbnb?

Always LOCATION. Location is number one. Next thing is amenities, like cable tv, high speed internet, a hot tub. Those are things that people really like. But more importantly is the quality of the management and cleaning. If you can consistently provide high quality management and a noticeably clean space for people, those things go a really long way.

How big of a role does furniture and decor play in a short-term rental property’s success?

It plays a huge role. Furniture and decor are literally the foundation of a short term rental. It’s not THE most important, I would say that photos are the most important and furniture and decor are what are IN the photo so it’s the foundation of it.

If you have furniture that shows function and flow and catches people’s eye and they can envision themselves having a good time and a good experience, that’s what you’re trying to deliver. Most people couldn’t tell you what are the great things about the furniture and decor, it’s a visceral response. It’s emotional. It’s critical.
designer living room
designer living room
Is there a direct correlation between how uniquely furnished a property is and its revenue? 

There completely is. An easy way to explain it is this: there are typically 3 types of guests that you’re going to attract depending on the furniture and the quality of your property.

If you’ve got a great condo downtown but it’s sparsely decorated, you’re going to attract the person who just needs a place to sleep so they’re looking at the lowest rate. They don’t care about the experience, they don’t care if the kitchen is completely empty, they just need a place to sleep so they’re not going to spend anything over and above that.

Then there’s the next person who wants the comfort. They want to be able to go there and at least have the same quality of stay as what they would have at home, so they would want cable tv, good furniture, a comfortable bed, those kinds of things. 

Then there is the person who is willing to pay a premium, and that would be for a place that has furniture that’s better than what they have at home, or a tv that’s better than what they have at home. They want thought out and strategically placed decor to provide and create an experience. Most people don’t have that within their home so when they are going out or travelling and willing to spend their hard earned dollars, you’ve got a much bigger opportunity by providing an experience vs saving on what you spend on the furniture on the front end. 

You’ve got a better opportunity to double your income by spending on furniture on the front end. I’ve seen a complete correlation consistently across all our properties. 

How much does it cost to furnish an Airbnb? What is an average budget for furnishing a property?

Budget depends on the place but is typically $10,000-$15,000.

What is an approximate return on investment on unique vs. standard, Ikea-type furnishing?

Something that’s properly furnished and staged and presentable can easily double your return on investment.

What’s your current process to furnish a property? 

I have 3 different levels of furnishing a property. 

If someone wants a premium, luxury, high-end experience for their guests or if they want to maximize their return on revenue, I typically connect those people with a designer I work with. He then works with them to furnish their property.

Other people want mid-range furnishings and don’t have a huge budget to work with, I have someone who helps me select decor items, then I do the shopping for kitchen stuff and linens because those are the things I can do as a non-decorator.

Then there’s the person who has no budget, and they’re getting me and my decisions. I think I can do an ok job but I’m definitely not the best person for it.

So there’s no service right now that does it all?

No.

{There is now!]

What are some common mistakes owners make when it comes to furniture and decor?

The biggest mistake owners make is looking at furnishing from a price perspective instead of an experience perspective. They should think of furnishing it as being equal to or better than the hotel down the street. That’s the biggest mistake.

As Canadians, we have such a deep sense of being able to do things ourselves but the reality is most people can’t do furniture really well, you can go on Airbnb and quickly see it. There’s 20% of the listings that look really well put together, everything else is a mish-mash of old furniture put together just to have the items in the space.
Why do you think owners are hesitant to create a uniquely furnished property?

Most homeowners think: how much am I going to put into it and what’s my return on investment. They always want to drive down their investment because they think it’s going to provide the same amount of returns, which is completely incorrect.

Something that’s properly furnished and staged and presentable can easily double your return on investment. But oftentimes when I sit down with homeowners and look at what their competitors are generating for revenue, they take that number and they hold it as concrete and then try to reduce their input of furniture investment as much as possible. 

I understand their thinking - they want to maximize their return - but as soon as a guest looks at the furniture in the photos, they can tell it’s the same Ikea furniture, it puts off future potential guests and diminishes their return on investment so much.

So it’s a mistake not to uniquely furnish because it doesn’t draw as many potential guests to their property listing? 

Yes, exactly.


In Part 3 of our interview with Coleman, we’ll get his thoughts on the future of short-term rentals post-Covid.

Coleman Washbrook manages 35 listings in the Edmonton area and can be contacted via email (coleman@raisingstandards.co) or Facebook (@RaisingStandardsAB). ​
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House Tour

7/14/2020

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Eclectic Austin Style

Architectural Digest's home tours are always inspirational. Here's a recent favourite.
What do you think? Should we use this home as inspiration for a Room Maker living room package?
Watch this video on The Scene.
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Learning From Experts: Short term rental property manager

6/17/2020

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In our new series, we chat with a variety of experts and gain some insight into their industry.

Interview with Coleman Washbrook of Raising Standards 

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Room Maker sat down with Coleman Washbrook, owner of Raising Standards based out of Edmonton, Alberta, to discuss Airbnb rentals.

In Part 1, we discuss how Coleman got started with his own Airbnbs, how he started his management company, and the benefits of Airbnb rentals.

Airbnb Property Management can be a rewarding career

Coleman, what’s the name of your business and tell me about the value you provide your clients.

My business is Raising Standards Property Management. The value I provide is the highest and best rental strategies through a white glove management service. These strategies include mid to long term fully furnished and traditional unfurnished long-term rentals, but my focus is primarily short-term furnished rentals.

How did you get involved with Airbnb properties?

My brother and I had a condo that we were in a negative cash flow position and if we would have sold, we would have taken a loss, so we gave Airbnb a shot. That was August 2017. 

So it turned out well? You guys were happy with Airbnb?

Yeah! Within 2-3 months we were doubling our revenue on Airbnb, so it was a pretty clear win.

Why did you decide to start an Airbnb management company? 

My goal was to manage ten airbnb properties and for each of them to be paying me about $500/month. My goal was to generate an extra $5,000/month by doing this as a side gig. When I got up to ten properties, I actually got laid off from my job. It was both awful and perfect timing because it presented me with a choice, and I think so many people are presented with that choice in life: either I pursue another safe, secure job or I dive into this and see how far I could go.

How did you find your first few clients? What kind of strategy did you use?

I started reaching out to people. I started targeting properties that were furnished in relatively good areas of the city. I asked homeowners if they’d let me rent and re-rent their property on Airbnb. I got a ton of rejection, a lot of people weren’t comfortable with it but there were a couple of people who were. I did that for about three properties, then people started reaching out to me and hiring me to manage their properties. It was a pretty quick transition going from listing my own properties to straight management.

What benefits do short-term, furnished rentals have over long-term unfurnished rentals?

I noticed the benefits with the first two rentals that I own. With the first property, we had a long-term renter move out. When he left, he left holes in the walls, small knicks, scrapes on the flooring -- typical things for a long-term renter. When we it up for an Airbnb, we had those things fixed and once it was set up for an Airbnb, there were no knicks or dings for the next year and a half that we had it on Airbnb because we had cleaners consistently going in there and viewing the place so if anything got damaged or broken we were able to claim against the last guest or the last guest would tell us about it and we would get it fixed very quickly, primarily because people want a consistent, high quality experience so it’s also our obligation to keep on top of those things. But it was a lot less than what I found from traditional long-term rentals. 

What kind of condition would a typical Airbnb property be in vs long-term rentals?

For my second property that I listed, I had just finished doing a full renovation on a legally suited house. I listed the basement suite as an Airbnb but the main floor - out of my nervousness - I decided to get a long-term tenant to guarantee some level of income. Two weeks after the long-term tenant moved into the main floor (and after I had put in $50,000 in renovations) the main floor was so dirty I wouldn’t even take off my shoes to go into the place! It was seriously disgusting and I was mad. I couldn’t believe it, I had invested so much money, time, effort, and energy and to not feel comfortable taking off my shoes after two weeks was crazy.

I’m not saying all tenants are like that but that was my personal experience. If I came into an Airbnb and it was like that, I would kick that person out right then and there. However, with the long-term tenant I can’t, I’m locked in.

What do you find your clients need the most help with and how are you able to solve their problems?

The biggest questions from clients is: what’s the income potential of my property? Depending on the property type and location, there are very different levels of income potential. A condo by Rogers Place or a basement suite in the very south of Edmonton have very different income potential. Those different property types also need a different furniture strategy. For example, putting $15,000 into a one bedroom basement suite in the southside is a bad use of money because you’re overspending. But that same $15,000 furniture budget in the condo by Rogers Place is a very good use of money. You will probably double your return on investment in a year.

[AirDNA is a good source of rate and occupancy data for Airbnb units.]

Is the difference because of the difference in market? Because it’s a higher end market downtown?

Yes, totally. I think of it in regards to food. If you’re hungry, you have a lot of options. If you’re busy and running around the city and you’re starving, you might look at a McDonald’s and think, ‘I can get food into my belly in 3 minutes or less and it’ll cost me $7’. So it’s fast and affordable. It solves the problem of getting food in my stomach. Same with short term rentals. 

It might be an empty place with a bed and that’s all you need. It could be an old, decrepit bed but you don’t care, you just need a place to sleep. Obviously the return on that investment and your ability to charge a premium is very minimal in that situation. McDonald’s competes on price and quantity vs. a fine dining restaurant, who are providing an experience and you just happen to get a meal with it. 

Looking at properties in the same light, there’s much more profit in selling and providing an experience through short term rentals.

What if someone spends $15,000 to furnish their condo downtown to get that higher revenue and that more expensive furniture gets wrecked? Why would someone potentially spend thousands every few years to replace their leather sofa vs hundreds for a cheaper fabric one?

If a homeowner spends a premium to get a leather sofa and higher end decor, and then someone wrecks it, the beautiful thing about Airbnb and other short term rental sites is that they typically have a $1million home guarantee policy. This means that whenever anybody books a listing through that website, Airbnb is backing them with their insurance. 

In addition, the host can charge a damage deposit. I typically charge anywhere from $300 to $1,000 depending on the property. So if the damages  are more than that damage deposit, first I use the damage deposit but after that Airbnb’s insurance guarantees those damages. Even if that leather sofa is wrecked, I can recoup from the damage deposit and insurance up to the replacement value. The benefit of that vs long-term rental is that a long-term rental’s damage deposit is the same as a month’s rent, let’s say $1,000. So if they rip out the kitchen cabinets, you can keep their $1,000 damage deposit but the damages might be more than $1,000. So now you have to go to court and present your case and file all these papers. It’s a tremendous effort of energy and time to go through the legal process and if the person doesn’t have any money at the end of it, you need to go through your insurance. It’s a tremendous effort!

If the same situation happened with an Airbnb, you first get that damage deposit but then you tap into Airbnb’s insurance. You take photos of damage and send to Airbnb, make your claim, and they pay you out. It’s as simple as that. You don’t need to go to court and go through the legal process. 

That sounds relatively painless! Terrible that someone wrecked your property but the process to get compensation doesn’t sound too bad.  

Yes, definitely.

In Part 2 of our conversation with Coleman, we will discuss how to maximize revenue at your Airbnb rental.

Coleman Washbrook manages 35 listings in the Edmonton area and can be contacted via email (coleman@raisingstandards.co) or Facebook (@RaisingStandardsAB). 


Short term rental property

Thinking of starting an Airbnb rental? Contact us to help you increase your revenue with our room packages.

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Starting a short term rental? Get 5 star reviews

6/8/2020

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Is now the right time to invest in a short term rental?

rental property
Despite the COVID-19 pandemic, the latest reports are showing that global rental bookings have jumped by 127%, due to the surge in domestic tourism. After hitting rock bottom in early April, vacation rentals are leading the tourism industry in its accent to recovery.

Should I start an Airbnb?

AirBnB has revolutionized the travel industry. Since starting 12 years ago, they've grown at a rate that most businesses can only dream of -- last year, AirBnB was estimated to be worth up to $35 Billion.

​Airbnb started out in 2008 when founders Brian Chesky and Joe Gebbia realised they could make a quick buck by renting out an air mattress in their living room to people visiting San Francisco for a big conference.

​The idea then evolved into a website where others could do the same, and travellers could get a cheaper option than a hotel. Now AirBnB has
7 million listings around the globe, and many prefer them over to  staying in hotels.
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Setting up a short term rental

A fun part of searching for an Airbnb is all the amazing aesthetics to choose from. While some properties offer up just the necessities, others are stylish spaces that truly feel like a vacation.

Before you can think about putting your own rental up on a website or getting photos done of your property, there is one important hurdle to cross: furnishing the space. Many people are unsure about how to pick the best furniture for their rental property. While a blank slate of an empty property is the dream for some homeowners, it fills others with dread to even think about the huge task of searching for stylish  furniture and decor.

​As the short-term rental industry continues to grow and become increasingly competitive, ensuring your property stands out from the crowd on online platforms all boils down to one key factor – its interior design.

 How to furnish a rental property & get 5 star reviews

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Room Maker makes the experience of furnishing spaces easy for Airbnb hosts. We offer turnkey service that furnishes rentals with coordinated pieces and décor.  Room Maker provides good design on a reasonable budget, delivered and installed with a quick turn-around time. 

We provide delivery, installation and staging. You don’t have to step foot into your rental unit at any stage and can rely on our service to deliver quality, convenience, and speed. All of our packages are delivered and installed on a three-week timeline. Clients can buy curated furniture and decor packages in many design styles on our easy to use e-commerce site.

We also offer custom packages for the property developers that want to create their own branded aesthetic. This service includes a conversation with one of our designers to discuss branding, as well as who their target demographic is.

It has become evident that better design leads to more bookings for your short term rental. Achieving good design with a quick turnaround time is tedious and a business in itself. It doesn’t take long for a potential AirBnB operator to realize that spending days trying to piece together a cohesive look from IKEA® and Wayfair®, weeks waiting for a hundred deliveries, finding a team to deliver, install the style the space is not their core business. 

Let Room Maker take care of that part for you so you can focus on the other touches to provide future guests a great place to stay, and you may find yourself with a steady stream of visitors who are happy to leave you 5 star reviews.

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Relocating for a job -- should I stay or should I go?

5/26/2020

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Making the decision to relocate

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For a lot of people, their ideal job can be found in the city they live in. For some, however, that job can be in another city, or even another province.

If you’ve received an offer for a job that requires relocating, it can be difficult to decide whether to accept that offer. There are some questions to ask yourself to help you decide if accepting that job and relocating is the right choice for you.


Some of the questions that should be considered are:
  • Is this the right opportunity for me? 
  • Is this job a short-term position or will this be a permanent move?
  • What are non-financial costs, including loss of professional and social network, and moving away from extended family? 
  • What opportunities will my partner have in the new location and are they willing to move?

These answers are not simple to arrive at, nor do they all have the same impact on your life. The decision making process is not simply weighing the pros and cons but rather taking a look at how relocation will affect all aspects of your life, personally and professionally.

What kind of housing will I relocate to?

A key issue is what type of property your future home will be. If you are relocating to a large city, living in a single family house may not be possible. You may find yourself looking at condos, townhouses, or duplexes. The opposite can also be true if you are moving from a big city to a smaller town and you find that you are able to live in a house. This change in type of housing can be a challenge for some.

Another consideration is whether you will be able to own or rent your home. If you are relocating from a big city, where rents and house prices are high, to a smaller town where housing is more affordable, this may allow you to become a homeowner. This possibility might play a big part in your decision making. For others, homeownership is not a priority and the possibility of owning is not important.  

To get answers about housing costs, access the Canada Housing and Mortgage Corporation’s databases.

If you do decide to relocate, then the whirlwind of activity to move your entire life begins, including finding and furnishing a new home. If you are looking for a room in a box or fast furniture service, Room Maker can help.

How can Room Maker help my relocation go smoothly?

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Imagine a long day of travelling to start a new chapter in your life. You arrive at the doorstep of your new home, feeling tired and a little overwhelmed, and open the door to find it furnished, with beautiful decor and everything you need inside. You feel happy and relieved that everything has been taken care of for you.

Room Maker can make that happen. We can furnish your future home with furniture and decor packages chosen by you, online and in the comfort of your home. 

Our curated room packages offer full apartment or house furniture sets for every room in your  home. These sets include furniture, decor, and housewares. We deliver, install, and stage all your Room Maker purchases. We have a variety of packages to suit your style, whether it’s industrial, farmhouse, boho or midcentury modern.

You don’t have to set foot inside your future home at any point in the process, just turn the key, open the door and enjoy your new home immediately. All of our packages are delivered and installed within three weeks from the order date. 

Let Room Maker help you start a new chapter in your life by furnishing your new home  and making your relocation as easy as possible. Visit us at www.roommaker.ca to find the right room packages for your new home.

​

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What's my design style? Take the Quiz

5/15/2020

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Furnishing your new condo

4/25/2019

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Part of the excitement of moving into a new condo is furnishing and decorating your new home. You may already have some furniture or perhaps you're starting from scratch; either way, keep the following tips in mind.

Be realistic about the amount of space you have. You don’t want your condo to feel cramped by filling it with an oversized couch, a California king bed or a 7 piece dining room suite when the square footage just isn’t there. 

Before going out to shop for new furniture, measure out the space carefully. Make a scale drawing of each room including windows and doors and anything else that occupies floor space (like a column or bulkhead). Only then should you decide what pieces you need to purchase.

To keep your condo looking spacious and roomy opt for pieces better scaled to a small space. This means taking note of furniture details. For example a couch with a rolled back will take up more room when placed against a wall than one with a flat back and a chair with a busy pattern demands more visual space than one with a neutral colour scheme.

Keep multiple functions in mind when selecting furnishings for your condo. Take the humble ottoman for instance -- many not only provide storage space but they can also serve as footstools, extra seating and coffee tables.  

Selecting furniture and decor for a new home can be tricky, we get it. That's why we came up with our curated room packages with each item meticulously selected to coordinate with the overall theme. Take a look on our Make My Room page and find the room that best suits your style and your space. If the package needs a small tweak to fit, just let us know and we will try to accommodate.

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Starting over just got a little bit easier...

1/31/2019

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​Hello world!

We’re here to make moving into your new home or furnishing your vacation property quick, easy and gorgeous.

Follow our blog for moving tips, what’s hot in the design world and decorating guides.
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