Garage Upcharge

[Dan Chandler]

I am looking into buy-and-hold single family properties.  Some of the properties have garages so when I'm doing my calculations I was wondering how much, if anything, should I calculate as an up-charge for allowing tenants use of the garage?

[Stephen Dee]

Dan, I think it really depends on your area. Here in Maine, a garage is a big deal for a renter. I have a property, which I used to live in myself, which has a garage. I am currently cleaning it out, so I can include it on my next turnover and increase the rent. Up to this point, I needed the storage myself. But every tenant, I have shown the property, asks about access to the garage.  Nobody likes cleaning their car off in the winter. It's a handy place to have them store a lawn mower or other items like kids bikes. You might be able to gleam some insight into price differences by watching craigslist ads in your area. See if other landlords are charging a premium for a garage.