Have you ever considered using that wasted garage space that you have as a source of income? Perhaps you weren’t even aware that renting out your garage is a feasible option, and it really isn’t that difficult with today’s technology!
I mean… there are dumber ways to create passive income. Believe me – I know. I’m the guy behind this blog – the Dumb Passive Income blog! And I’ll admit, I’m not even looking to rent out my own garage or lease my garage. The Ford Ranger that we purchased for my 15-year-old son is currently occupying the 3rd stall of my garage. So why am I even writing this post?
Well… I’m writing this for you. Maybe you DO have some extra space in your garage (or anywhere else) that is just sitting dormant and doing nothing for you. You might be like so many others, and your extra parking space has just been piling up with junk, year after year.
So, why not get rid of that junk and rent out that space to generate some cash flow and start earning some passive income?!
Can You Rent Out Your Garage?
I’m not going to claim to know all of the legalities, as circumstances will vary greatly depending on where you live and your specific situation. But here are a few things to consider…
- familiarize yourself with and follow all local laws and community rules
- make sure your garage space is clean and safeguard your home and your belongings
- absolutely make it official with a signed contract (or similar agreement)
- check with the insurance agency for your property to make sure you are properly insured and that your policy allows rentals
- always require the renter to hold their own rental insurance policy
Here are 4 Questions to Consider Before Renting Your Garage Space
- What will you allow your renter to do with the rented garage space?
- What will it cost to turn your garage into a rental?
- How much should you charge to rent your garage?
- Is your garage secure?
What will you allow your renter to do with the rented garage space?
Do you want your extra garage or storage space to be used solely for storage (recommended)? Or, will you consider allowing your renter to inhabit the space in some way (live/sleep, office space, weekend mechanics, etc.)? This needs to be spelled out clearly in your written contract to avoid future misunderstandings.
What will it cost to turn your garage into a rental?
It could cost very little if you’re just converting some unused space into storage space to rent out. Or, the cost could be substantial if you plan to turn your garage into a rental property where somebody might live. For your situation, you’ll need to consider the potential return on investment (ROI) if you do plan to spend a lot of money on a garage conversion for a rental space.
How much should you charge to rent your garage?
Again, the rental rate that you receive for your unused garage or storage space will vary depending on where you live and what the space is being used for. Check local rates for similar rental rates for whatever you plan to rent your garage space for, and price yours accordingly. You may be able to charge a premium if your garage is climate controlled and highly secure.
Is your garage secure?
What type of neighborhood is your garage in? Are the entryways to your garage secure with working locks? Do you have an alarm system and/or surveillance cameras? All of these are important factors for rental storage places, including the empty garage that you plan to rent out.
How to Find a Renter for Your Garage Space
For the purposes of this article – we are going to focus on renting your garage as storage space, rather than for any other purpose. Renting out space for storage is the most common and easiest way to earn extra cash from that unused parking space in your garage. You would be surprised at the number of people who are looking for extra storage space! Here’s how to find them…
You could always go the old-fashioned route and place local ads in the classified section of area newspapers. Ha! Who are we kidding? Don’t do that! Nobody reads newspapers anymore, and certainly, nobody browses the classified ads in local papers like they did yesteryear.
The next best place to advertise is Craigslist or Facebook Marketplace. Although – with online classified platforms like this, you never know what to expect with so many scammers abusing the platforms. However, if you scan the listings for some of the larger metro areas – you’ll see that there is clearly a need for parking spaces. Street parking isn’t always ideal, and cars are much safer and more secure inside a garage.
The preferred method to rent out garage space is to use a dedicated platform designed to connect people who want to rent out their space with renters looking for space to rent. Think of it as the Airbnb of storage. One such platform is neighbor.com – and they offer SO much more than just garage rental. Business Insider says this about neighbor.com…
Neighbor… is trying to fix the self-storage industry with a peer-to-peer alternative.
Here is the full write-up about Neighbor on Business Insider’s website. They explain some of the nitty-gritty details of exactly how the platform works.
Neighbor.com was a brand new startup in 2017 and has since become the #1 go-to marketplace for the private self-storage industry. Simply put – they connect people who have extra space with people who need extra space.
I know this article is about renting out your garage… but neighbor.com also accommodates the rental of ANY type of space. From basements to attics and even plots of dirt that can be used to park a vehicle. It’s really amazing, and the platform is a genius idea.
Whether you want to find space to rent or you want to make some money by renting out space – it’s definitely worth taking a look. Plus – if you use any of my links on this page to sign up with Neighbor.com – you’ll get a FREE $50 gift on your first paycheck!
Can I Rent Out My Garage for Storage?
You might be wondering why somebody would want to rent your garage for storage and what types of things they would be storing. Here are just some of the reasons people may want to rent your empty garage space…
- Alternative to a commercial storage unit
- Classic car storage
- Store supplies for a business
- Renovation materials
- Seasonal tool and/or toy storage
- Store personal belongings
So, if you have a big garage with some square footage available – or even just a small garage that you aren’t using for anything – consider renting your space to add some extra cash to your life.
Renting out your garage does not have to be a complicated process. In fact, in can be quite simple when you use a platform like Neighbor.com. Whether you want to rent just the parking space for somebody who is just looking for a low-end parking space. Or whether you want to rent the entire garage for storage purposes. There are mutual benefits for both you and the renter.
You can rent out your garage, which will increase cash flow for your budget. Your renter can potentially save money versus renting a storage unit in a commercial space.
Remember – if you use any of my links on this page to sign up with Neighbor.com – you’ll get a FREE $50 gift on your first paycheck!
Preparing Your Garage To Be a Storage Rental Space
Step 1 – Clean and Maintain Your Garage
Cleanliness is the absolute first step in preparing your extra space for a renter. Be sure to remove all of your junk or other personal belongings. Give it a good sweep with a broom, or even use a shop vac of some sort to vacuum it out. Lastly, you may want to consider hosing down the area and maybe even painting the floor and/or walls to give it some extra shine.
Maintenance is equally important to cleanliness. Be sure that your garage door opens smoothly and that any electronic opening devices are in working order. Inspect any locking or security devices to make sure all are operational and working as expected.
Pest control is another important aspect of maintenance. Make sure that your garage space is free of rodents or insect infestations. It’s always a good idea to keep some mouse bait traps placed strategically around the inside perimeter of your garage.
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Step 2 – Secure Your Garage
You’ll want to provide a secure facility for your tenant, as well as provide security and peace of mind for yourself. Most garages have a big (wide) garage door that opens and closes vertically. Typically, these types of garages are opened with an electric garage door opener (although some are easily opened manually). For added security for your tenant – you should provide them with the ability to be able to lock the garage door from the inside (assuming they have access to a man-door to be able to enter and exit the garage).
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Some form of digital security is ideal as well, like an alarm system or security cameras. If you’re the do-it-yourself (DIY) type, it can be fairly inexpensive to purchase and install a simple home security system for your garage, like the one below (on Amazon)…
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Step 3 – Partition Your Garage (Optional)
It’s possible you may be renting out just a section of your garage (or basement space or wherever), and you will likely want to put up some sort of divider. If you’re handy – you could go to your local home improvement store and purchase some lumber and nails or screws and build your own custom divider. If you’re not so handy, or maybe just lazy, you could simply purchase some sort of divider similar to the one below on Amazon…
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Get Started Today!
Does renting out your garage sound like a viable passive income option for you? Perhaps you have other space you could rent out, like basement storage space or even a spare room. The possibilities only end with your imagination and ingenuity.
I mean… it can’t hurt to take a look and see what space is going for in your area. Hop on over to neighbor.com and take a look! Why not add some additional income to your life by utilizing your unused garage or storage space.
Don’t forget – if you use any of my links on this page to sign up with Neighbor.com – you’ll get a FREE $50 gift on your first paycheck!
Related Read: 27 Passive Income Ideas for Everyday People
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