Adding Storage Sheds as a Secondary Income Stream

[Jeff Lawlor]

I have an 8-plex with a large, fenced in plot of dirt sitting unused. I see opportunity in that dirt! I want to put up 7x7 storage sheds in the area for the tenants to rent. My preliminary numbers show I could bring in $325/mo if they are all rented.

I'm fighting hard to convince my property manager this is a good idea. I'd love to hear your thoughts- good idea or bad idea?

Here are the details:

* A 50 sq ft storage unit in the area rents between $56 and $120/mo. The more convenient the location, the higher the rent.

* These would be 49 sq ft sheds with the ultimate convenient location: Just outside your door!

* These are available for tenants only- not open to the general public

* We'd have a separate lease for the storage so that we only have to evict someone's stuff if the storage rent goes unpaid

* I expect we could fit 5 sheds in this area, rent them at $65/mo for a total of $325/mo

* According to my numbers, it would take 21 months to recoup the investment, then it's all cashflow (assuming they are fully rented)