Kannapolis, NC · Member since 2016 · 9 posts · 10 votes
I am narrowing down SFH properties in preparation for my first purchase. Of the 4 at the top of the list, two have an attached garage, and two do not. The houses with garages are $15,000 more. Is it worth a $15,000 higher list price to buy a house with a garage? I'm not looking to flip, but to buy and hold. These houses are in NC, so there's not much in the way of winter weather. I'm assuming it's easier to find tenants if your rental has a garage, but that the monthly rental income would be similar. Or am I wrong, will the house rent for a higher monthly rate with a garage? All advice welcome, thank you.
We do have one property in Raleigh without a garage, but it does have a sizeable area with an access door tall enough to store a lawn mower and some other items in part of the crawl space and also a large area under the deck for storing outdoor furniture, etc. As long as there is some form of storage, especially if house has a yard and tenant is responsible for mowing, a garage is preferred, even if tenants do not use it for vehicle.
Here it is harder to rent without a garage but the house without the garage also has no basement. So if there is storage like a shed it might not be as big an issue. Also we get more snow.
Jana, I would search Zillow for local rentals and observe the rates with and without garages. I own properties with and without garages. As someone who would never live in a home without a garage, I expected to have difficulty renting my carport units..... Nope! Kitchens, bathrooms, and master bedrooms are generally more important. Now if the garage less property is in an area where everyone has a garage or bad weather risk is high, then that could be an issue, but if those aren't affecting your property then you should be good to just focus on which gives the better cap rate. IMO you will need to bring in more than 150 / month on the garage property in rent to make it worth the 15k.
When I bought my first house without a garage I thought to myself, "Most people living in an apartment moving up to a house don't currently have a garage" so it should be fine.... It has been so far.
We live in Buffalo, NY, and we were looking into rental properties here. Our realtor told us that for rentals, garages aren't important (and we DO get winter weather).
We are in the process of buying a rental property in SC and the realtor said that Northerners moving to the area seem to think they need a garage. It doesn't seem to me that houses with garages command more rental income. I think you just might have some renters who won't consider the property without a garage.
We do have one property in Raleigh without a garage, but it does have a sizeable area with an access door tall enough to store a lawn mower and some other items in part of the crawl space and also a large area under the deck for storing outdoor furniture, etc. As long as there is some form of storage, especially if house has a yard and tenant is responsible for mowing, a garage is preferred, even if tenants do not use it for vehicle.
I own both, with and without garage, its nice to have, but not needed. Some tenants like the extra storage, or I use it to store materials, but never a deal breaker.
I think it depends mostly on the price point. for a 100-150K property, I don't think it matters much (most of mine are in that range and none have a garage). Especially if you have some other storage space (shed, walk-in basement, etc). A lot of people in our neck of the woods never park their cars in the garage anyway and only use it for storage. However, when you are talking 150-200k and up, I'd definitely try to get a garage.
It cost about $15K-$25K to build a separate detached garage. So if you find 2 comparable properties with only a $15K difference for garages, you should go for that. If you're financing it, $15K is not that much more per month for a 30 year mortgage.
As others have pointed out, garages don't matter that much for rentals.
What is important are the comps in your area. If 4 out of 5 houses in your area have garages and yours don't, it may be an issue for resell value.
I'm curious...does anyone who has a rental with a 1 car garage have a tenant who parks in it? I do not think I have ever seen a renter put their car in the garage.
Really thin on details to make that determination. There is never a cookie cutter answer. Market, location, other available properties, price points, etc. No offense, but it is like asking "which is better, a white car or a grey car"?
Thank you for the advice everyone, this was very informative and I appreciate everything you guys had to offer. I am leaning toward the properties with a garage even though they're a bit more expensive. It's good to see the opinions go both ways incase I end up with no garage, it's not the end of the world.
I'm curious...does anyone who has a rental with a 1 car garage have a tenant who parks in it? I do not think I have ever seen a renter put their car in the garage.
Mine does. The garage is in front and I have alley access with 3 spots. Its a 2/1 sfr.
@Jana Colgin I rent tons of houses in NC, and the ones without garages rent just as quickly as the ones with garages. One with a garage will usually rent for a little more.
@Jana Colgin If you could provide more info, you might get more in depth answers. Are you looking to invest in Kannapolis? What is the price point for rentals in the market with and without garages? How long are you planning on keeping the property? What is the inventory for homes with/without garages?