Hello BP members,
I want to ask about providing storage sheds to my tenants. Is it a good idea to install a storage unit for my renters? I'm looking at 3ft×5ft storage unit to each of my units. I'm just trying to market a different perk. My property is surrounded in a neighborhood of plexes. I'm asking if there is any legal issues or problem I do not forsee. I only see positive aspects, but want some experience advice. Will tenants appreciate it? None of the other properties do not offer this perk. I can get money back by applying cost in rent. I can get back within the 1yr term lease. Thoughts?
Getting it back thru higher rents, probably not. Getting it back thru being more desirable leads to more tenants to choose from, quicker occupancies, etc.
Make sure you cover liability in case things are stolen in your lease or the shed addendum. I doubt you would get more in a lease but you could charge extra for them and probably make it back that way. Or just having it available would be nice as well. Talk to your current tenants see what they say.
@Ray Juarez At one property I have garages mostly suitable for storage and charge extra for them. There are not enough for every unit. I get a surfers, serious mountain bikers, and people with paddle style boats that want them. If it is something you can charge extra for figure out your payback period. Also do you attract a crowd that would use them? some want them , some don't. I do make it clear that you shouldn't store indoor items in them because of squirrels/mice having been know to get into them. I would not just add sheds, I would add them on turnover or add some for an extra charge. Also it is use at their own risk. I always use an addendum to cover the garage and they are attached to the lease so garage rental ends with end of lease.
Some questions I would ask myself in this situation are:
 Can they afford to pay for them?
 Will they pay for them--not just the initial lease term, but give up their beer and cigarette money year after year?
 Will the municipality increase your taxes if you do this?
 Will they be repeatedly subject to break ins?
 Will the residents store undesirable greasy/oily things in them (such as parts from the engine they pulled from their cousins truck and intend to rebuild--for 3 years and never do--then move leaving you with a huge greasy/oily mess)?
 Is your competition forcing you to do this to make market rent?
I have a 4-plex with similar size storage units. Can’t say I see a huge correlation with rental income but they definitely use and appreciate it because wouldn’t be much room otherwise.
I think overall, long term, the roi is good.