Should I build a shed?

Question

I'm rehabbing a small single family home. 800 sq ft, single story, crawl space. No garage or other external structure for a lawn mower or anything. Obviously there's not much storage available to tenants.

I'm considering building a small storage shed, but I'm inexperienced and having trouble quantifying how much it's worth spending on this. I don't think it would raise the rent I can get. It would mostly be about decreasing turnover with a quality of life improvement and making lawn care simpler.

The house will be $1300/mo rent at a $130k ARV, so not something I want to pour a ton of money into.

Drew Sygit · Answer

In our experience, adding a shed can add $25-50/month to rent.

You can test this in your advertising - add a line that states, "Storage shed available for $50 extra/month" and see how many prospects ask about it.

RECOMMEND: checking city building requirements. In our market of Metro Detroit, many cities have a limit on the shed size that will trigger a permit requirement, along with requiring a concrete pad with rat-wall. That can be expensive.

Instead, you can buy a plastic shed a Home Depot or Costco and put it on pavers.

NOTE: you could even advertise that you will install one for extra $50/month in rent, so you don't have to front the money unless tenant willing to pay for it!

$799https://www.homedepot.com/p/Rubbermaid-Big-Max-7-ft-x-7-ft-S...

$1.97/sq fthttps://www.homedepot.com/p/12-in-x-12-in-x-1-5-in-Pewter-Sq...

James Jones · Answer

For a $1,300/mo rental, I'd skip building one and either buy a prefab metal or resin shed (Lowe's/Home Depot, $400-800 installed) or just leave it. A custom-built shed eats too much capital for this price point.

Honest take though, tenants at this rent level don't really expect outdoor storage. It's a nice-to-have, not a turnover driver. The things that actually reduce turnover are quick maintenance response, clean condition, and fair management. Storage rarely cracks the top 5.

If you do add one, prefab metal kit installed on a small gravel pad. Fast, cheap, durable, and you can write it off. Don't build custom for a B-tier rental.

Save the capital for reserves or your next deal.

JD Martin · Answer

Thoughts:

1. Sheds tend to get filled with a lot of tenant junk that (hopefully) they remove when they leave, or you end up removing. They also often end up with damaged floors from water or oil or gasoline or decaying tenant junk.

2. Lawn care is better if you just hire a company to do it and build it into the rent. Years ago we used to offer lawn care as an add-on option, and almost no one took it because tenants are cheap by nature. And we constantly had terrible looking lawns and city violation notices, tenants who would cut the grass once every 4 months or didn't own a weedeater or would scalp the lawn or just cut around obstructions. We still have 2 legacy properties (10 year tenants) without lawn care, but they are the only ones left, and we just build the cost into the rent and have hassle-free yards that are professionally kept. Tenants suck at cutting grass.

3. I've never had a house not rented because it lacked a shed. We actually added a shed one time to a house, and that was only because it was a 3br without a carport, basement, or attic so a decent sized house with zero storage. I have other houses that have sheds but they were already there.

Bottom line: I wouldn't do it unless you're hell bent on the tenants cutting the grass. Unless you build it yourself or buy some used piece of junk you are not getting any kind of decent shed for under a couple grand, because that's what they cost these days.

Tre DeBraga · Answer

Good question to think through carefully at that price point.

The honest math: at $1,300/mo, even a 1-month reduction in vacancy is worth $1,300. If a shed reduces turnover by even a couple weeks per tenant cycle, it pays for itself. The tricky part is that turnover reduction is hard to measure and easy to overestimate.

**Lawn care angle is underrated.** A shed that stores a mower on-site can save you real money or hassle on lawn care — making it an operational tool, not just a tenant amenity.

Bottom line: I'd probably do it, but cap your budget around $800–$1,000 max for a property at this price point.

Colin McCarthy · Answer

That's an interesting idea, thank you. And thank you to everyone else who has replied too!

I knew that pouring concrete would be one of the more expensive parts. Are those pavers actually a decent alternative? Just looking at them, I would think they would shift around over time.

I'll look at permitting requirements for my city. Good thought there.

Theresa Harris · Answer

Buy something small that will hold their lawnmower.  You can get ones that are small for <$400, not the kind you walk into, but more for patio storage.

Richard F. · Answer

I would go along with @JD Martin and hire a yard service. You don't want Tenants dragging gas powered equipment indoors, and they don't want to get ripped off, so without a proper storage area a service might be best.

Alternatively, put up a more substantial wood framed "kit" from HD or others, on a concrete pad you can pour yourself. If you don't bolt it down to the concrete, you probably don't need a permit. Does not need to be huge, but the rubbermaid and flimsy tin sheds do not hold up at all.

If you DO put up a shed, absolutely do NOT provide lawn care equipment to Tenants. Huge safety liability.

Another possible option, really depends on the type of construction of the house, and the exterior layout. You might be able to more easily and inexpensively build a lean to or smaller storage space by attaching to the exterior wall of the house, or a read deck if you have one. By using the house for one side, you gain strength and easier security. It would not need to be tall enough to stand up in, just big enough to roll a mower in and a place to hang a weed whacker.

Should I build a shed?

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