How much is a detached garage space worth?

Question

Hi Everyone,

We are currently under contract to purchase our first duplex and the sellers want to become renters for a year and the purchase of the house is contingent upon the lease agreement (both parties to need to agree on a lease before the end of the inspection contingency). They want to pay extra per month for the entire garage versus sharing it with the other unit. How much more per month is a detached garage worth in a very cold winter climate and how much will we "lose" from the other unit by not having it available to offer? Any insight is much appreciated!

Kevin Powell · Answer

@Heidi Backer If these people are owner occupied were they sharing the garage before? How long has the other tenant lived there? If the other tenant isn't sharing that space I think $100 for both spots per month seems very fair.I have 11 units in Minneapolis, 2 garage stalls, and 11 off street parking spots. The garage stalls are rented for $50/mo/stall to non tenants. There are renters where parking is a big deal and you will miss out on them. If you are only getting one response to advertising then you need to adjust something. Price, Format, Pictures, etc. There are a ton of renters out there and if you advertise well with good pictures at a fair price you will not have any issues.I have something like 30 bedrooms overall and 11 parking spots, and I haven't had any vacancy in four years.

Heidi Backer · Answer

@David Barnett I was going to charge at least an extra $100 per month for it, so I'm happy to hear that is aligned with what more experienced landlords would charge as well!

David Barnett · Answer

You're welcome @Heidi Backer. I would still caution against it unless they are paying you at least $50-$100 more for it. A covered parking space is something that is a selling point in MSP (from my experience).

David Barnett · Answer

@Heidi Backer I have a property in St. Paul that has a two car garage and a property in Minneapolis that does not have off-street parking. The St. Paul property with a detached garage rented in a couple of weeks, while the property in Minneapolis without off-street parking took many months to rent (I had it on the rental market, pulled it and re-listed and got a hit). Does the St. Paul property have off-street parking in an alley? I've found that on-street parking is a big challenge for many renters in MSP and is a dealbreaker. I probably wouldn't rent out the whole garage to the tenant if there isn't off street parking. If there is off-street parking, I would probably charge them an extra $100 for the one spot that goes with the other unit. Best of luck.

Account Closed · Answer

Heidi Backer For my units that have garages in NE, we charge 100/month for use of one stall. As I have been by the units over the past couple months I've noticed that most of the people who rent them don't even park in them. I think for use of the entire garage, especially since it may make your other unit less appealing, could be 100-150 all in. Just my two cents.

Bryant Amundson · Answer

@Heidi Backer @David Barnett, going back to your first post. As a renter myself in MSP for the past 5 years, finding parking on the street was sometimes... most times, a nightmare. I often rode my longboard to shorten the time it took me to park and get back to my apartment. But then again it all depends on location. If they can find street parking across the yard or maybe a couple houses down, then maybe it would be fine, it all depends on what kind of tenant you have!

Alan DeRossett · Answer

in Ventura County CA many has multiple vehicles so if we do not include a formal garage with remote opener we would get tenants without nice cars or good jobs. it adds $200 to $300 per month compared to a unit with just a carport. Bigger issue is good tenants must have a Garage.Tiring to accompdate a long term tenant (15 years) he bought a 7series BMW and also still has a Harley is updating the garage space for newer cars sizes. we currently provide a single car garage with each apartment, length 18 ft 14ft till wheels hit a curb with storage area above that. but newer cars can require more length our width is fine @12ft

Marc Jolicoeur · Answer

This is a new property for me but I have a large detached garage behind a duplex in the powderhorn park area and tenant applicants are clamoring to rent each half for $100 each. Especially in a roommate situation multiple residents on one side would be happy to rent more than one spot.

Jeff B. · Answer

IMO, a garage is worth the cost of a Storage Unit of the same size. However, I offer mine with the lease w/o extra fee - - it becomes my marketing advantage over similar units :grin:

Chris Christianson · Answer

I've lived in Minneapolis for over 30 years. I've never once rented an apartment that had a garage. Bought our house in uptown 11 years ago with a single car garage and it's full of tools so I still don't park in a garage. Off street parking is a must in most areas, not all, but Northeast is so hot I wouldn't worry about it at all. Good luck with the duplex.