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The Importance of Contracts | Staging Career Center

The Importance of Contracts

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Author: Staging Career Center-Shell Brodnax (4 Articles)

Shell Brodnax President/CEO-RESA®, Staging Career Center Staging & Design Network Home Staging Industry Leader of the Year 2011 Stevie Award Finalists Best Executive Finalist 2010 Stevie Award Finalist Best Executive 2009 Central Valley Women’s Council of REALTORS® Business Woman of the Year 2007

I couldn’t help but recall a situation I had with a stager I was working with on marketing and business consulting. She sent me all of her marketing materials, contracts, invoices, policies etc. I go over everything and I was amazed at how many “holes” their were in her contract.

I had pointed out that she was really leaving herself open to all types of havoc because she was not having her contract clear on expectations, promises, deadlines and consequences. Her answer was “I don’t want to scare off potential clients” those things have not ever happened so why worry about it.

I explained to her that a contract not only protects YOU the business owner it also protects your clients.  It is so important to have a good contract. By not having a clause in about any one of a particular issue you open yourself up for disappointment, and loosing money.

 

It is important for a contract to include but not limited to:

Description of services: EXACTLY what you are going to do. List each room to be staged.

Payment Expectations: When it is due, what it covers, renewal fees, rental fees, pick up and delivery, payment methods accepted, bounced check fees. Also, have the CC on file with a signature to bill and to bill for renewals.

Cancellation Policy: How many days before staging is it ok to cancel? Do you have a deposit? Is that refundable? If they cancel X amount of days before the staging, do they pay a % of the staging fee? Do what works for you and what you feel is fair.

Client Consent: Get permission from the client for you and anyone with you to enter their property. Get permission for you to be able to move around items.  Have anything listed that you are not to move.

Occupied Properties: Consent to use items, move items, and rearrange items. Closets, cupboards, pantries, etc. The client should agree to protect their valuables and or remove them for safekeeping.  Have them acknowledge that staging may require hooks, nails and small holes may be left and it is up to them to touch up anything upon sale.

Vacant Properties: Have the homeowner provide keys to the property so you do not have to rely on someone to let you in. Sometimes when we stage you have to make a store run and you need to be able to get back in. In addition, the key will be returned upon de-staging. By having a key you will have access should you feel your inventory is in danger or the deal sours you can get your inventory.  Have a clause that if a dispute arises that the homeowner agrees that you can enter to retrieve your items.

Hold Harmless: They should agree to release, indemnify and hold harmless you and your employees, contractors’ suppliers, etc. against any losses, liabilities, damages, injuries, and expenses for any claims including attorney fees.

Absence of Warranties/Guarantees: express that you can’t “guarantee” any particular results. You use your best professional efforts and the ultimate sale of the property is contingent upon the market, exposure, etc.

Artistic Impressions: Ever stage and have the homeowner move around your work? Explain in writing that the client agrees not to alter any staging. Your staging is your work product and buyers and real estate agents will see it. If they alter the work, the public will believe this is your work and it may not reflect positively or the way you desire. Acknowledge that it can be difficult to live in a staged home and if there is something they can’t live with due to function then to discuss it with you and you will find a solution. If it is just they think something will look better in another spot and you know it won’t, don’t compromise.

Photography and Publicity Release: Let them know you may use photos in your marketing materials in print or on web. Nothing that will identify them personally will be released.

Pets: Pets are important!! Make sure client agrees to remove the pet while staging so you are not liable if Fido escapes and becomes lost or a DOA at the local shelter. Explain this is to serve your clients best interest and pets safety.

Inventory Damage or Loss: Protect your inventory with photos and document each project. Make sure they don’t remove it. They should be responsible for loss or damage.

Renewing Your Contract: After your contract term, you should state what your renewal fees are, 2 weeks, daily, another month, etc.

Scheduling/Rescheduling: What happens if you show up on the scheduled date and the pre-staging instructions were not done? They didn’t paint, clean the carpet, the house is a mess? If it’s vacant you shouldn’t put your inventory inside in that condition and if it’s lived in you can’t work in that environment.

Ownership of Property: have them sign off that they actually own the property.

Force Majeure- Unforeseeable circumstances that prevent someone from fulfilling a contract.

Damage: How do you want to handle issues if you cause damage?

Insurance: Do you have it? Show you have liability insurance. Be sure your contract states they are responsible for loss, damage, theft.

 

The bottom line is you are a professional businessperson. You have the right to a contract and should not feel guilty about it. If you were contracting with anyone for anything they will have a contract. When you rent a car their contract is HUGE. It protects them and protects you because it tells you what your rights are. Think how your client would feel if you had no contract or had a very flimsy contract? They will think you are not prepared, not professional and new. So protect yourself, avoid disaster a solid contract makes for a “dream staging” and avoids NIGHTMARES. Hire an attorney to create your contract. It’s money well invested.

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