Does a Shed Increase Equity/Rent Income - Shed acquisition tips

[Tim C.]

Hi BP,

I am considering having a wooden shed built in the backyard of a two bedroom house. The house currently has an 8x10 wooden shed with a leaky roof and ugly design placed in the center of the yard. I could repair the old shed and leave it, but I'm considering donating the old shed and having a nice 10x12 shed built in the back corner of the yard ($1750) instead.

The house is 940 square feet and the yard is 50 x 35. Do think this is a wise investment that could lead to a higher asking price on the home and possibly a higher rent? Has anyone here had experience with building, buying, moving, or repairing sheds?

[Jon Holdman]

I have an almost identical property.  My current tenant, who's been there almost three years now, ended up putting in a small shed.  He did have my permission.  Its really a necessity if there is no garage.  Otherwise, where do you put the mower?