Two units, one detached garage. How to price it?

Question

I've got a little dilemma, looking for some advice.

I've got two vacant units (a 4bedroom and a 3bedroom) but only one detached garage.  I've got great applicants for both units, but they both want the garage as an add-on cost to their lease.

I'd love to get the highest price possible, obviously.  How would you go about establishing the cost of the garage?

Thomas S. · Answer

Tell each how much you want and let them know they both want it. Ask each to make their best and final offer over your ask price and the highest gets it. It's not an auction just a single blind bid from each.

Thomas S. · Answer

Once you have an idea as to how much you want for it tell them both only one will get the garage, the one that is willing to pay the most for it.

Account Closed · Answer

@Justin R. Check to see how much storage units or RV storage/garages cost in your area per month, that are about the size of the garage. And I'd price it a bit below that.  I'm thinking at least $100/month, but I don't know your market.

Is there electricity to the garage and/or water, etc.?  Is it separately metered?  You'll have to also charge them for utilities in it.

Justin R. · Answer

Neither has yet signed a lease.  How would you imagine that conversation, literally, going?

Me: I'm calling to find out how much you're willing to pay for the garage - the other unit wants it as well.

A: How much do I have to pay to just get it?

Me: I don't know, but whatever you say, the other guy has the option to go one dollar over you, then he gets it.

Uhh...

Justin R. · Answer

@Roy N. As far as I can tell, there's no garages for rent in the area.  Non of the properties, when originally built, had garages.

Roy N. · Answer

@Justin R.

We have a 5-unit property with an single garage.  We rent it separately under a commercial lease.

We set our price by looking at the price per ft^2 for other comparable garages and storage units in the area.

Two units, one detached garage. How to price it?

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