How to Make Money Renting Out a Garage

Question

If your tenants don't need them here is another way to increase roi.

I have rented my garage and rented others garages for my business. When I rented out my garage, I posted a craigslist ad for classic car storage and a gentleman rented one half for his Lotus - $100 per month and that lasted about 6 months. Next was a guy with a crap load of refrigerators for about a year. Then a guy with a classic BMW. He paid some upfront as he was leaving the country and did not know when he would be back from filming. He was gone for well over year. I actually moved and towed his car to a new house. Well eventually he fell behind out of neglect. I put a storage lein on and when he came back he paid up and drove off. I really never wanted his bmw but that was my protection.

I currently rent a single gated carport in Santa Monica for my business and pay $125 per month. He has a tri plex and he collects an extra $675 per month for a single, double and carport. I am not sure what the regulations are but there could be more possibilities with hobbiest, collectors, unique storage the list is endless. I am sure this could apply to rv and boats for outside parking too. Good luck with your garage rentals!

thanks,

Matt

Colleen F. · Answer

I decided for tenants on the property I will separately rent the garages but will have the agreement not go past the duration of their lease payable in 6 month increments given it isn't so much. I haven't yet written the agreement. For me if they rent a garage for their car it is to my advantage to have lesser vehicles parked in the tenant parking, makes all the tenants happier. First tenant to rent we agreed to the $50.00 may be low but will see. I just want his Jag somewhere out of the way before the snowplows come.  I will test the waters at a higher price and with non-tenants to see if  I get any bites.  We have lots of parking but someone is always whining.  I even had to put up some signs.

Kim Martin · Answer

Very interesting! Imam just closing on a 4 Plex that has 6 garages.  What kind of a rental agreement do you use?

Marcia Maynard · Answer

In our town a self storage unit rents for about $1 per sq ft.  I am seeing more and more the value of a garage. Thinking about how to factor that into the rent price of our SFRs.

Steve Babiak · Answer

I have one getting over $100 per month (that seems to be the going rate there) and the person renting it keeps a convertible in it. Don't want that top slashed by vandals :)

Colleen F. · Answer

you have to be in the right area. We have some garages we are going to rent to tenants but it hardly seems worth it.  you can only charge like $50 a month around here and adding the door alone will only get paid for in a couple of months.  Only doing it because they keep asking.

Ron Averill · Answer

Does the garage owner need to have additional insurance to cover the contents, or does the lease specify that the owner is responsible for damage, theft, etc. ?

Steve Babiak · Answer

See if a storage facility lease can be used, since you don't want to be forced to go through regulations that would apply if it were somebody's residence.

Matt R. · Answer

I will look for my Santa Monica copy. It was simple one two page with security deposit.

thanks,

matt

Matt R. · Answer

I should note the cars were tiny and the refrig guy arranged in way I still had work bench and personal storage in play. I still had full use of these dettached garages.

Matt R. · Answer

Thanks,

Matt

How to Make Money Renting Out a Garage

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