I've looked through some of the topics on BP regarding garage rentals. Most deal with renting them out to 3rd parties not related to housing. I'm looking to purchase my first duplex now which comes with a detached 2 car garage. Is it commonplace to offer tenants $50/month to rent a space in the garage? If so with two units how can you be certain another tenant isn't occupying the garage and splitting the rent?
How much should I bank on an extra $100 a month for the 2 spaces, with no driveway, and limited street parking? Is it something you guys factor into your number when calculating income generation?
One thing to consider is converting the garage into a studio and have the tenants park in the street or in the driveway that leads to the garage. You could charge a lot more than $100 a month.
I know my response has nothing to do with your question but just thought I would throw that out there. :)
If there is limited street parking, you should be able to command more than $50 for your garage depending on where you are. To keep it simple, you could just increase the rent $75 and include the garage in the rent.
That's a really interesting idea though
If you don't include the garage with the rental, and you end up wanting to use it yourself or rent it to someone else, from a manager's perspective - it would be problematic.
If you use it, the tenants could claim their quiet enjoyment is being disturbed by you.
If you let someone else rent it, there will be problems between those two tenants.
I suggest you just include it with the rental.
Plus, you really don't want to have to deal with separate deals between tenants sharing the space, etc. Any time you have to "police" some situation, it will be a hassle and stressful and just not worth it.
Think in terms of being an applicant looking to rent the property. Wouldn't you be a little weirded out if the landlord said, Oh, and over there is a 2 car garage that you can't use unless you pay for it. You'd be wondering, well then who is going to end up using it, and will they be traipsing through my yard or peeking into my windows, and will my child be safe...or do they grow pot in there...
Really, just make it easy on yourself and include it in the rent. Ask a higher rent and play up the Great Man Space!
My daughter rented out a 2/1 that was small with a dinky kitchen, but it had a large detached garage that was the width of 2 cars, and very deep. She ended up renting it to a couple of roommates, one of whom collected motorcycles. He was thrilled!
What is normal for the area? What is your competition doing? I think it is all relative and perspective?
I know apartment complexes totally get away with doing that! On the other hand smaller places, this tends to be expected. On the other hand, large cities parking is alway separate.
So truly the key is what is normal and allowed by your market/client base.
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