You don't need a huge sofa, but you want to make sure to get the most seating from a smaller footprint. Choose an armless sofa. What you lose in traditional armrests, you gain back in functional space for more people to sit. For additional storage, choose a style with slightly higher legs to accommodate low-slung bins or baskets underneath.

In smaller living rooms, there isn't room for excess seating. But there is usually room for small, solidly built side tables stationed beside the sofa or by an armchair. When you've got guests, you can easily pull these out to be used for seating. They can also be reliable step stools and footrests.

When you don't have a lot of floorspace, you want every piece to make an impact—both visually and practically. A small cabinet, like this one from CB2, can be used as a side table stocked with books, a bar cart or an audio cabinet topped with a turntable. This shelf from West Elm (complete with built in lamp) frees up your floor while serving as a handsome entry table or night stand. And this modern interpretation of a secretary desk folds up to give you more room when not in use.

If you're particularly low on closet space, you need to embrace open storage solutions. The upside is that many of the best options also add some intrigue and architecture to an otherwise simple room. For instance, these clothing racks, complete with mirrors and shelves, offer a place to store your favorite clothes, or prep your outfits for the next day. Use them to display the items you love the most and tuck away less interesting objects behind closed doors.