Renting Garage Space Out: What do you Need to Know?
Depending on your location, renting garage space is a great and reliable form of extra revenue, especially in light of the high demand for long-term parking in urban areas. Whether you’re considering opening up your property’s garage to potential renters, looking at investing in a property with a garage, or you simply want to maximize assets you already have, here are some important tips moving forward.
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For Starters, the Garage must be Unattached
If you property has an attached garage, that space should be strictly and exclusively reserved for your tenants. Even if your tenants don’t have cars or aren’t using the space for storage, access to the garage is presumably included in their rent and should be treated as such. Allowing others access to the garage essentially gives them access to the rest of the property, and issues between your garage renters and tenants will be all but inevitable.
Check the Laws in your Area
Garages are typically not considered dwelling units and thus might not be subject to the same regulations and laws as the rest of your property. These laws vary by area, so make sure you’re familiar with what you can or can’t do, as well as what preparations to make before renting garage space out. Still, much of the basics of leasing property applies. Prepare a contract, require a security deposit, and ready an action plan if the renter fails to fulfill their end of the contract or pay rent. This may seem like a lot of paperwork for a garage, but neglecting standard precautionary measures will only leave you vulnerable if issues were to arise in the future.
Determine how Long these Leases should Run
How long you should consider renting garage space out to individuals should depend on the area and the priorities of the potential renters themselves. If an inquiring individual lives in the area and simply needs a space to park his or her car, then a year-long lease would be appropriate. If you live in an area with high turnover, then one-, three-, or six-month contracts can ensure a steadier stream of revenue. The length of your lease should also play right into your efforts to market the garage. Don’t forget, the whole idea is to find renters.
Run a Tight Ship
When someone parks incorrectly, it will cause a chain reaction where everyone else will park incorrectly. Make sure you are clear and specific about what parking spot is whose and include it in your contracts. When a renter parks incorrectly or is suddenly using more space than agreed upon, you must act quickly to remedy the situation and ensure the problem won’t arise again. Other renters will be justified in saying that they aren’t getting what they paid for if someone else is using their spot. Be ready to respond quickly to complaints or concerns from anyone involved. It is likely that a renter will have no other options, even in the short-term, if they arrive to the garage and find out that they are unable to park their car.
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Stay Organized when Renting Garage Space
Renting out your garage responsibly might sound just like more paperwork and headaches for you as a landlord, but if you keep your contracts and deadlines organized, you’ll find it more than worth it for the money you’ll be making. The parking and garage industry is worth more than $10 billion after all. If you need some help with management, it may be smart to consider Tenant Management Software. Innago’s services are perfect for a landlord with multiple properties or contracts operating at once.
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