Renting Storage Space to Tenants

8 Replies

Has anyone found a way to rent storage space (outside of a tenant's unit) to get more income? Looking for real life stories. Thanks

@Al Williamson  

Good to hear from you.  We are renting a garage and old laundry room as storage at the moment, but not a real storage business ... yet.   

You may or may not recall that we had worked out a deal with a local self storage facility for our student tenants to use to store their stuff in the summer when they are away.  We get a small referral from the storage outfit which we have been taking in kind to store some of our materials - while we rent out the garage :-)

However, there is a self-storage operator here who wants to expand by 50% and we are considering taking a portion of the action.   If we do, you can be certain there will be some vertical integration effort.

Thanks @Roy N.  

I'm trying to do a round up of all the ways landlords could play the storage market - which seems ever expanding. Any more examples out there?

@Roy N.  

you say this is a barter type of deal? That's cool.

May I pick your brain. Tell me how you would go about the vertical integration. Run a short example for me - I'm a little slow - public school educated. Thanks

I have a house with a detached 2 car garage ..  When they rent the house the garage is not included , Its divided in 2 , if its available they can rent a side .


In our student rentals, incoming, and occasionally outgoing, tenants frequently need to store their belongings before their lease comes into effect.  

Lots of landlords around here will rent with term leases for the school year (Sept - April).  Students leaving one of these places and moving in with us for the following September, often put their belongings in storage for the summer.

In another scenario, we have tenants who leave for the summer, or a term or two for a co-op placement and want to sublet their unit while they are away.  They also frequently put their belongings in storage.

Right now we refer them to a single storage provider who gives them a slight discount (10%) on storage fees.  In return, we are getting a complementary storage unit for our own purposes.   Part of the reason this arrangement arose is because summer is apparently a slower time for the storage facility - though he seems to always be 75-80% capacity or better.

If we were also the storage provider, we could offer enough of a discount to ensure all our tenants used our facility.  We could also give our tenants each one or two invite a friend coupons so their friends (who are not our tenants) would get a slightly smaller discount on a storage unit.

Naturally we would extend the offer to all our tenants, but I would expect it to get the most play amongst the students .... though I do have a tenant who rents on of our storage spaces now as he is recently divorced and has downsized from a house.

I'm sure I'll come up with more ideas as I carry the idea around, but this is what I have to-date.

BTW:  Nothing wrong with public schooling ... that pretty much all we have here.

@Matthew Paul  

Please tell me how much your rent each side of your detached garage for.

@Roy N.

Thanks for the illustration. Please tell me how much you rent your laundry room and garage space for. 

Originally posted by @Al Williamson:

@Matthew Paul  

Please tell me how much your rent each side of your detached garage for.

@Roy N.

Thanks for the illustration. Please tell me how much you rent your laundry room and garage space for. 


The laundry room is 215 ft^2 and is rented on an annual lease, rent due by the quarter payable in advance at $375/quarter ($125/month).  If the tenant had elected month-to-month, rent would have been $150/month.   This is on-par with self-storage rates in the area, but the location is right downtown, making it far more convenient.

The garage is ~340 ft^2 and is rented on an annual lease, rent due by the quarter payable in advance at $600/quarter ($200/month).  The month-to-month rate on this unit would be $250/mth.   This is a bit below market for the location.  Note the garage could fetch much more during the winter months (November through April): in the past it has been used to store motorcycles (8-10) at $75/mth ea. ($600 - $750/mth total)

I am getting close to the same amount.

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