Did you know you can rent garage space to others and earn extra money? You can renovate a garage into an apartment and charge monthly rent or give someone space to store furniture and knick-knacks that no longer fit in their home. You can even offer daily parking spots if you live in a prime city location.
If you do choose to open your garage to renters, there are a few things you should know.
3 ways your extra garage space can make you money
Here are the three main ways you can earn money from a garage rental.
Rent your garage for storage
If you have a large garage, you can list it as a storage space on various websites and earn money by providing storage for other people’s belongings. Setting up your space will take time, as you have to make sure your garage is clean, secure, and has climate control. People will be more likely to rent from you if you have cameras and security.
Before listing your garage as a storage rental space, get any necessary permits and familiarize yourself with your local zoning laws to make sure it’s legal to do so. It’s also a good idea to create a storage space lease agreement and collect a deposit.
While setting up this process will require some effort, once you have a system in place, renting out your space is a relatively passive endeavor.
Rent your garage for parking spaces
Depending on your location, you could also rent your garage as a parking space. In some areas, especially bustling cities, people could save money parking in the garage space you offer instead of in an expensive lot.
Before doing this, it’s worth calling your insurance company to see if you’re protected should something happen to your tenant’s vehicle on your property. Most importantly, make sure it’s legal to offer your garage as a parking space in your area.
Parking space rental is a more passive stream of income than renting your garage for storage, but it will still require a clean, secure space.
Rent your garage as an apartment
You can earn even more money by renting your garage as an apartment. The catch is that this requires more upfront costs to convert the garage into a liveable space.
Updates might include sealing concrete floors, adding interior walls, installing more electrical wiring, installing an air conditioning unit, and creating a small kitchen space. It’s crucial to make sure the living space complies with all local regulations and zoning laws. As a result, renovations and repairs will likely be expensive upfront; however, renting garage space can create strong passive real estate income over time. Consider taking out a zero-interest home improvement loan or tapping into home equity to cover the costs.
How to get started renting garage space
If you’re still interested in renting out your garage despite the upfront work required, here’s how to get started. The process is similar whether or not you’re leveraging your garage as a parking spot, storage space, or apartment.
Evaluate your garage space
The first thing you should do is evaluate your space. Regardless of how you plan to rent out your garage, you should still research the improvements you need to make. Also, don’t forget to consider your own storage demands and whether or not you’ll need to use your garage yourself.
Additionally, think about your lifestyle and how much time you actually have to allocate to renting out your space. Renting out your garage might seem like a good idea in theory – but in reality, it might not work for your lifestyle.
Finally, consider if all of this is worth the potential financial return. For some, renting out a garage will provide a much-needed extra stream of income. For others, managing a rental and tenants might take too much time and be too much of a headache.
Identify legal and regulatory requirements
Before you prep your garage space to rent, research zoning laws to find out how to stay compliant with local regulations. It’s possible you’ll need to apply for permits or a specific license in order to rent your space. This is especially important if you’re going to rent out your garage as an apartment, as many municipalities have stringent rules defining what counts as livable space.
Prepare your garage for rental
Here are a few considerations to prepare your garage for a renter.
- Cleaning and maintenance: It goes without saying that it’s important to provide a clean space. Whether people will be renting your garage apartment or using your garage to store their belongings, they’ll want to do so in a well-maintained area.
- Security measures: Make a good impression on your renters by showing them you prioritize safety. Install security cameras and motion-activated lights. You can also install deadbolts and give them a copy of the keys or garage door opener so they can access their belongings when needed.
- Adequate lighting and ventilation: People like spaces that are bright and ventilated, even if they are only storing a few boxes in your garage. A well-lit space ensures they can find what they need. A ventilated space helps to keep air flowing, which can help protect their belongings.
- Necessary utilities: You won’t need much more beyond electricity and maybe A/C or heat if you rent your space as a storage unit or parking spot. However, if you’re renovating to create a garage apartment, your tenant will need access to water and likely cable or internet services as well.
- Needed renovations: If you’re creating a garage apartment to rent out, research legal requirements in your area. More likely than not, completing a garage conversion will require financing and working with professionals.
Determine rental rates
Pricing your rental can be a challenge. The first step is to look at other local listings in your area to understand the prices others are getting for a similarly sized space. If you’re worried about attracting tenants, you can offer promotions like the first month free to draw interest.
Also, keep in mind that amenities will impact your price. If you have something that sets your rental apart, like multiple security cameras or full-sized appliances in an apartment, you might be able to ask for more.
Of course, when in doubt, you can always get a second opinion by asking a local real estate agent what it’s worth.
Market and find tenants
There are many different platforms you can use to list your garage space. When you create a listing for your rental, be sure to take clear pictures with good lighting. Even if you’re photographing an empty space, showcasing a clean area that’s secure and ready for storage will help tenants trust you with their belongings.
If you’re looking for tenants to rent a garage apartment, you can also contact real estate agents and property managers to let them know about your space.
Final thoughts: Can I rent out my garage for storage?
Renting out your garage storage space or completing a garage conversion to an apartment is a great way to earn extra money. However, make sure your garage is secure and legally compliant with all local laws. It’s also important to maintain your garage space, ensuring everything is in good working order for your tenants. If you do that, you can be well on your way to earning extra money each month using the space you already have.
If you need help financing renovation costs, consider drawing on your home’s wealth. A Home Equity Investment (HEI) from Point can help you cover the costs without the addition of monthly payments.