Renting Other Sections of a Property

[Gary Libero]

Hello!

I'm currently house-hacking in two family home. I have a tenant on the 1 BR side and I'm doing some minor rehab-ing to the 3 BR side I'm living on before I move onto the next. There is a large "garage type" space (can't be used for cars as it's inaccessible due to septic system) that is well over 1000 sq. ft. There is a local artist interested in renting a new studio/ art storage space. I reached out to him to see what his specific needs are (i.e. if he needs a climate controlled space, this wouldn't be for him). 

Have you ever done something like this? Looking for tips on how the lease was structured. In his post, he said he's looking for a monthly rent between 800-1000, so that's a built-in win right there. The space is locked, semi-insulated, but it's a garage. Electricity, no heat or running water (though a utility sink may be able to be installed, not sure what plumbing looks like out there, which I'm about to go check out).

For the lease, what would I use as an address? Or primary address and add something in like "garage only" or "studio space only"? Do properties need have a certain type of zoning for something like this (that may be me overthinking, but trying to cover all bases)??

I will have to be clear that this can't be used as a retail space and he'd have to carry his own renter's insurance. I have no idea what type of art he wants to store, so that's wild card. If it's expensive stuff, this probably isn't a fit). 

Let me know what you think and if you've handled a situation like this.

Thanks BP!

G