Standards for renting out attached garage space to non-tenants?

Question

Hello, all!

So I’m mulling over an opportunity to increase cashflow and wanted some feedback.

Background is that I am househacking my own primary residence; I live on the bottom level of my split-level house and rent out three extra bedrooms upstairs to tenants whose combined rent covers my mortgage and all utilities. I also have an attached 2-car garage which I keep my own vehicle in. I’ve offered the second space In there to each of my tenants for their cars for $50/month, but they’re fine parking their vehicles outside on my uncovered gravel lot. So I have this second space I’m considering renting out as car storage to a non-tenant third party. My questions are:

1) is it standard to only allow access when I’m present? Otherwise I’d have to hand over a spare overhead garage door opener, and they’d have unsupervised access to my Personal belongings I have in there, like tools in my workbench, and could cause potential noise disruption to my tenants upstairs. I’d much prefer to be present to let them in to park or retrieve their vehicle on the rare occasion they do; is that standard in the car storage market?

2) is there a storage lease template anyone would recommend?

3) what remedies are available for non-payment of rent? Is it standard in garage car storage for something as extreme as taking Legal possession of the car, even with no key so you can’t start it?

4) what other questions should I be asking?

Any insight would be appreciated!

Thanks!

David Wolber · Answer

@Charles Moore, I have several garages rented on various properties here in CT. We have a lease just like any other rental, although we've never really had anyone default on a payment yet so i unfortunately can't offer any wisdom on that front. However, if what i know about the storage industry, you can just lock up the stuff until they pay. It's not the person's home so it doesn't fall under those laws. Don't take my word on that though, if the situation ever comes up, i'd call our lawyer first so i don't even trust my own opinion on this. haha

Definitely put up a wall between your space and the rental. and don't use drywall, use at least 5/8 plywood and screw it in. It's not bullet proof, but if the renter wants at your stuff then they have to work for it.

We don't restrict access to our garage rentals either. It's their storage space, they can come as go as they please. We have stipulations and rules depending on the type of rental. If it's just storage then basically they can't do anything and we don't even provide them a power source. If it's a garage that the renter can use for auto work (no businesses) then we provide power (most of our garages like this have separate unities meter and they rent the entire garage).

If, however your two car garage has only one door than this is a significantly different conversation. Your going to want to restrict access when you are there. But this shouldn't be an issue if it is just winter car storage or something like that. It's not like they will need to be in and out a lot. Or, just offer it as winter storage with almost no access during the winter. This way you don't have to worry about it.

I could offer up my garage leases for you to see, but they are all CT based so not sure if they'd do you any good.

-Dave

Charles Carillo · Answer

@Charles Moore

We have a rental property where we have a 2 car garage with separate doors. We put up a wall between them and rent each out (no door opener). The only way I see this working is if you rent for winter storage with monthly or weekly access. Also, you will get higher garage rent from non-tenants than from tenants. We only rent it to cars because my property manager says it is easier to get them out if they do not pay.

Chirag Gulati · Answer

@David Wolber Would you be able to share those with me as well? TIA

David Wolber · Answer

@Charles Moore No problem, i'll PM you to get contact info.

Charles Moore · Answer

Thanks, @David Wolber! Yes please, I’d very much appreciate seeing your lease template just to get an idea of the language and general points to consider.

Daniel Jewell · Answer

@Charles Moore

If you have a bit of land and a big driveway you could rent out parking spaces outside.

I wouldn't restrict access.

Look at a local big box storage places. be like you want to rent but you want to be weird and read the terms and conditions first, they've already thought of it.

If your garage only has 1 door then I'd still put up drywall. Its what 10 2/4s and 4 sheets drywall.

Carlos Salazar · Answer

Nice way to find extra cashflow.

I agree with @Charles Carillo and @David Wolber. I would put up a wall and not restrict access. If you limited access that would limit or even eliminate a pool of interested individuals.

Honestly, I think it may be more work than its worth. For one, you will need to change the key that gives you access to the house from the garage. Secondly, building a wall, especially if it is a single garage opener will be impossible or at the very least very difficult. Also, how long will take for you to make the money back that you spend on the wall? 1 year?

In my opinion I would seek to rent out the entire garage and find a separate place to store your personal belongings.

Charles Carillo · Answer

@Charles Moore

My property is located in Connecticut so I would check with your local property manager or real estate attorney.

Charles Moore · Answer

Thanks, @Charles Carillo!

How does your property manager remove cars for nonpayment? Tow truck? Are the cars then impounded?

Standards for renting out attached garage space to non-tenants?

Standards for renting out attached garage space to non-tenants?

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