Rent garage or no?

8 Replies

I'm working on closing a 2 unit. There is a full basement with storage for both units. There is also a 2 car garage that has been framed with a dividing wall needing only drywall to finish. The question is should I rent the garage spaces separately or include as part of renting? I know the answer will be determined by my area, but I'm curious what others have done/tried. I was thinking of renting for $50/mo. There is an apartment near by that charges $80/mo.

Arthur I do not rent the garage spaces separately, but I definitely account for the value of the garage space in the rent I set for the apartments. So if I owned the place you are buying, I would make the rent $50 higher than if it did not have an indoor parking space included. If I ended up with a tenant who does not have a car, only then would I try to rent it to someone else.

I'd add the cost of the garage into the rent for the units and heavily advertise that you have a one car garage included in the rent. After this past winter you'll have people jumping at the chance for enclosed parking!

@Arthur Banks,

The responses from @Dan C. and @Ginger C. are dead on. As a former renter, I was always looking for garage spaces or underground parking. Adjust the rent accordingly and include it in the lease agreement.

Originally posted by @Dan C. C.:
Arthur I do not rent the garage spaces separately, but I definitely account for the value of the garage space in the rent I set for the apartments. So if I owned the place you are buying, I would make the rent $50 higher than if it did not have an indoor parking space included. If I ended up with a tenant who does not have a car, only then would I try to rent it to someone else.

Thanks all.

@Dan C. So if you're renting for $1150 and the tenant doesn't need it, you'd find someone to rent ON TOP of the $1150 you're already getting?

Arthur, yes I definitely would then rent it out to someone else, I have done that actually. The lease normally specifies that the garage spot is included. So the tenant in your example would sign a lease that omits any mention of a right to a garage spot. And you should be very clear to the tenant that the lease does not include a garage spot, so they do not think they can let guests use it. I think I did one time then reduce the rent of the tenant a bit to reflect that there was no right to the garage. But if you can get away without doing that, well that's obviously better. But whether you reduce their rent, and how much - that's your call. That's one of the things I like about being a landlord, is you are the boss so to speak.

I recommend you evuate the market and expectations. In all of my areas there is a Buber that you cannot exceed or people won't even see the property. That is because they only search up to a number. Unlike ads, if people out $1600 into a search something 1625 won't come up even if it's perfect.

Therefore I always advise against charging more because people often won't see your ad even if it's 25-50 more a month. I also would know he area. All of my houses would not be okay if you rented their garage out even if they were using it.

Know your market!

Elizabeth Colegrove I agree it's about knowing my market. But part of the reason this site exists is to ask what success and failures others have had in different situations. This being my first property with a garage I would have to wait until my next REIA to ask local investors. But with the power of the internet I can ask everyone in cyberspace at once and get different ideas, weigh them and see how it applies to my market.

Oh, and I don't know anyone that would be ok with renting their garage if they were using it. Kinda makes it hard to rent it to someone else. Just sayin'. =)

Arthur I didn't mean to not ask! I also had a typo. It was suppose to day nt using it. I just meant that I know people in X that rent out the agave separately buy none of my markets would allow me to rent the garages out separately nor would let me garage more. I was just letting you know this so if you did try this method you knew that it was regional. This is a great site .

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