What's the value of an accessory/storage building for a rental?

Question

I just put an offer on a 1100sqft 3/2 SFR on a half acre. Should rent for $1000-$1200. Was wondering if putting a pre-fab storage building in the back yard might allow me to charge an extra $100 or so. Any opinions on this?

Chris Martin · Answer

I've found that it's hard to monetize these 'improvements' but that like any other amenity, the overall package that you offer may be more attractive and result in a lower vacancy rate.

The cheap aluminum versions ... I'd avoid if I could do it again. On a half acre I'd be tempted to frame up a 'real' storage shed, and for anything large I would if there wasn't already. We have a half acre SFR in Garner coming empty by the end of summer and we'll put up a stick built shed. I think it will translate in quicker rent, not necessarily higher $, but at $250/week (roughly) in vacancy, that adds up quickly.

Pearce G. · Answer

Thank you @Bob B.Nathan G. all for the input. The house has a big yard and would need to be mowed, so a storage shed would provide a place to store it.

Here's an example of what I had in mind:

https://www.lowes.com/pd/Rubbermaid-Common-7-ft-x-...

Not exactly pre-fab, since it needs assembly, but at $700, it would pay for itself pretty quickly if it allows $50-$100 more in rent. (An aluminum version costs about half as much.) Not sure if you could ever actually measure whether it enables higher rent, but it is something I would put in an ad. And if the tenant has a bunch of junk stored, it might make them stay longer.

Melissa McGuire · Answer

Who keeps up the grounds? Is it the landlord or renter? I found it .....I don't know ....unheard of that a landlord charges extra for a storage shed. Shows what I know ( or don't know) I just think if you can offer a storage shed that it would help to rent the place faster, Tend to keep the overall property cleaner. I know that when an appraisal is done that they compare comps. Maybe see what other landlords are doing with regard to this situation and go from there. I'm not saying that other landlords don't get extra rent for having storage in place and allowing the renter to store their personal property in there, what I am saying is that it would be a shame to put off a great renter for something like an extra 50 $ a month. Maybe check in to what a storage unit rents for of similar square footage, and base your decision in part on that. Please forgive me if I've over stepped, Just hoping to help. Best of luck to you

Melissa McGuire

Bob B. · Answer

The problem I have with storage buildings is that it is something else to maintain.

Sam Shueh · Answer

Home depot for a storage shed. Ask if the tenant wants to share the cost so they can store personal items.

Nathan Gesner · Answer

What is the cost of comparable storage units in the area? Is the house small enough that extra storage will be necessary? Are other homes charging for extra storage? If so, how much?

Personally, I wouldn't think it's worth $100. What if you spent the money to install it and then the tenant said they didn't want it?

I recommend you rent the unit out as is. Ask the tenant if they want / need more storage space.If they do, find out what they are willing to pay for it and see if it's worth the trouble.

Shaun Patterson · Answer

What will the cost to build that prefab be? and how long will it take you to cash flow at 100 per month?

Matthew Paul · Answer

It depends on how much storage there is in the house .

What's the value of an accessory/storage building for a rental?

What's the value of an accessory/storage building for a rental?

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