Tenant Self Storage in Extra Rooms of Owner Occupied Multi Family

[Andrew Sprague]

In an effort to maximize income on a small Multifamily property I’ve been thinking creatively about how to add value and sweeten the deal for a good tenant.

First a couple of assumptions.

1) Traditional 9/3 triple decker in MA

2) FHA loan contingent on Owner Occupied status for 1 year

3) I don’t want to have roommates in my unit...

What if I rent out 2 units and offer the tenants a storage agreement. I would let them store their extra belongings in the 2 extra bedrooms in my unit for a low fee (let’s say $50-$100 a month). I would ideally give each tenant a specific key for the bedroom which is probably 200 sqft or about 1500 cubic feet of storage. 10x10 units in the area run for $125-$200/month so I think $50-$100 is a great deal to have it nearby the tenant and 50% extra space. Does this sound like something I could do? Any advice from a legal, personal, or practical perspective is greatly appreciated.

Lastly, I know I could rent the 2 bedrooms to people for a much higher price, but essentially I’m brainstorming to see if I could navigate the roommate hassle while still getting income for the unused space.