Renting out basement space to tenants for storage

[Jeremy Host]

Hello,

We are closing on a duplex in St. Paul, MN next month. The basement is pretty large and unfinished, I plan to put in laundry down there for the tenants but will still have plenty of additional space. I was thinking about sectioning off two areas (one for each unit) and offer additional storage space for a fee to each unit since there is not a lot of storage in the units themselves and there is no garage either. Has anyone had experience with this and how much you charge?

Thank you

[Joe Schaak]

It's a great idea, @Jeremy Host. I own several duplexes in St Paul and the East Metro and always look for this opportunity. The amount depends on the size of the storage unit but mine range from $15-25/month. I'm sure you could ask for more but I want them to be utilized fully. If it's possible, I also enclose the furnace and water heater so that they aren't readily accessible (the tenants have access). Hope this helps!

[Nathan Gesner]

Quote from @Jeremy Host:

I did this before in a multi-family. If you are charging for the storage then their belongings should be secure. Make sure they store only in the designated space and that it doesn't overflow. You may want to create a storage agreement with rules about what can/cannot be stored, security, liability, etc.

[Jeremy Host]

Quote from @Joe Schaak:

It's a great idea, @Jeremy Host. I own several duplexes in St Paul and the East Metro and always look for this opportunity. The amount depends on the size of the storage unit but mine range from $15-25/month. I'm sure you could ask for more but I want them to be utilized fully. If it's possible, I also enclose the furnace and water heater so that they aren't readily accessible (the tenants have access). Hope this helps!

Certainly does help, thank you!

[Jeremy Host]

Quote from @Nathan Gesner:

Quote from @Jeremy Host:

I did this before in a multi-family. If you are charging for the storage then their belongings should be secure. Make sure they store only in the designated space and that it doesn't overflow. You may want to create a storage agreement with rules about what can/cannot be stored, security, liability, etc.

Thanks for the advice! I will definitely partition off so they have designated space that they can lock so it is secure. Nice thought on the agreement and what can and cannot be stored, I hadn't considered that.

[Richard F.]

Aloha,

Be sure you perform move in/move out inspections on the storage unit as well as the living space. Otherwise you will end up with a lot of junk to haul away...and hopefully it will not be hazardous waste! You definitely do NOT want to allow flammable liquids, propane tanks, and similar items to be stored.

Be cautious with enclosing the furnace and water heater, they need plenty of airspace to function properly AND safely. Be sure the materials you use are appropriate also.

[Bruce Woodruff]

Quote from @Jeremy Host:

Nice thought on the agreement and what can and cannot be stored, I hadn't considered that.

 Yep, you don't want them storing gasoline and fireworks down there....

[Mike Moe]

A lot of the time how much your tenants need this will depend on the size of the units. I did them on smaller rentals that were 1x1 around 550 sqft and it was great. Did not have as much luck with renting them out on 2+ bedroom units. 

[Amber Gonion]

@Jeremy Host just to add to the discussion, I have seen people put in cyclone fence enclosures or other types that people can see in. I would advise to make sure no one can see inside (they may see what they want to steal) be sure that the floor doesn’t get wet (or provide a floor spacer above the slab), natural ventilation, a few shelves and hooks, and spend a little more on the locking mechanism.