Renting out Basements for storage only?

Question

Hi all! Have any of you ever rented out basements of your property for storage purposes only? I have been approached about this and would love to hear any and all feedback. Thank you for reading and I look forward to your insight :)

Marc Winter · Answer

@Bud Gaffney

Yes, we have.  But only with a 'hold-harmless' clause in the event of fire/theft/flood, etc.  @Steve Smithy correctly stated, a separate, securable entrance is necessary.

Bud Gaffney · Answer

@Todd Rasmussen Thanks Todd!

Todd Rasmussen · Answer

I don't think it's necessarily more liability as much as it is an additional or different policy that would extend coverage in a loss related to the storage activity. Good luck!

Bud Gaffney · Answer

@Todd Rasmussen valuable insight. Thanks so much Todd! I suppose I could explore how much more liability insurance I would be looking at. All about the numbers, and possible headaches ;)

Thanks again!

Todd Rasmussen · Answer

@Bud Gaffney

I'd worry about extra business activity not being covered on your standard insurance policy and the extra liability involved in stockpiling flammable material underneath your tenants dwelling. I don't think it's something that I would pursue, but recognize that I'm taking a pretty conservative stance.

Bud Gaffney · Answer

@Marc Winter very good. Thanks for your insight Marc! Greatly appreciated.

Bud Gaffney · Answer

@Steve Smithy Thanks Steve!

Steve Smithy · Answer

I have heard of others doing that if there is a separate entrance and the basement is fully secured from the apartments in the building.