Adding storage sheds to 7plex

Orlando, Florida
Commercial Real Estate Investing
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Adding storage sheds to 7plex

Juan Rodriguez
Investor · FL · Member since 2020 · 3 posts · 1 vote

hi, 

Buying my first 7-plex in FL (already have multiple duplex) and there is some space to add few pre-fabricated shed storage units. 

The rent per unit (1/1) is around 850-1,000, and planning to charge ~$50 per month per shed unit. 

Has any of you done something like this before?, or you feel it's more hassle (liability, tenants complaints, etc) than benefits?


Thanks  

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Chris MasonPro Member
Moderator
Lender · CA · Member since 2015 · 9k+ posts · 10k+ votes
2y

If we assume that once in a while things will not go 100% perfect with one of these small $50/mo storage units... is this really worth your time?

$50/mo is 1/20th of $1000/mo. But will it be 1/20th of the effort? Is the "will you please work with me on the rent" conversations be 1/20th as frequent or 1/20th as long or 1/20th as dramatic? 

The cost to "evict" may actually be 1/20th since 'stuff' doesn't have tenant's rights the way a residential tenant does, but the entire other basked of 'stuff' to deal with seems like it might be closer to 1/2 or 75% of the 'normal' level of time/attention/etc that you as the landlord have to deal with.... but you're only getting 1/20th the income.

Unless of course you are going to tie these to the 7 units themselves, and moving forward every time there is a vacancy, include the storage with the unit as a bundled pair, and increase the rent accordingly. That, I could see making sense. 

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  • Gino BarbaroPro Member
    Rental Property Investor · St Augustine, FL · Member since 2014 · 2k+ posts · 1k+ votes
    2y

    @Juan Rodriguez

    We had garages that were loaded with junk when we bought our first property. We cleaned them out and rented them as storage units. 

    I would ask the tenants if this is something that they would benefit. If they don't use them, then you can advertise and rent out to anyone

    Good Luck!

    We got $50 per month as well on our deal

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    0Reply
  • Ronald RohdePro Member
    Attorney · Dallas, TX · Member since 2016 · 5k+ posts · 2k+ votes
    2y

    Yep it sounds like a good income add if you have the space, how do you maintain them? secure and clean them? stolen?

    0Reply
  • Account Closed
    Investor · TX · Member since 2018 · 38 posts · 28 votes
    2y
    Quote from @Juan Rodriguez:

    hi, 

    Buying my first 7-plex in FL (already have multiple duplex) and there is some space to add few pre-fabricated shed storage units. 

    The rent per unit (1/1) is around 850-1,000, and planning to charge ~$50 per month per shed unit. 

    Has any of you done something like this before?, or you feel it's more hassle (liability, tenants complaints, etc) than benefits?


    Thanks  

    Juan, I'm just curious, what do you think the sheds will cost to buy, transport, set up, etc? 

    This sounds like a good idea, but all of that matters of course for the ROI calculations.

    0Reply
  • Juan Rodriguez
    OP
    Investor · FL · Member since 2020 · 3 posts · 1 vote
    2y
    Quote from @Ronald Rohde:

    Yep it sounds like a good income add if you have the space, how do you maintain them? secure and clean them? stolen?


     I plan to make them with no need for maintenance and the lease that I'm not responsible for the stolen goods (I know, this will be the tricky one)

    0Reply
  • Chris MasonPro Member
    Moderator
    Lender · CA · Member since 2015 · 9k+ posts · 10k+ votes
    2y

    If we assume that once in a while things will not go 100% perfect with one of these small $50/mo storage units... is this really worth your time?

    $50/mo is 1/20th of $1000/mo. But will it be 1/20th of the effort? Is the "will you please work with me on the rent" conversations be 1/20th as frequent or 1/20th as long or 1/20th as dramatic? 

    The cost to "evict" may actually be 1/20th since 'stuff' doesn't have tenant's rights the way a residential tenant does, but the entire other basked of 'stuff' to deal with seems like it might be closer to 1/2 or 75% of the 'normal' level of time/attention/etc that you as the landlord have to deal with.... but you're only getting 1/20th the income.

    Unless of course you are going to tie these to the 7 units themselves, and moving forward every time there is a vacancy, include the storage with the unit as a bundled pair, and increase the rent accordingly. That, I could see making sense. 

    1Reply
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