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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 viable option and really isn’t that difficult with today’s modern 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 garage or lease my garage. I currently have a mother-in-law living in my home and her car is taking up my 3rd stall in 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.
Image Credit: “Junk at garage” by Felix E. Guerrero via Flickr
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 your 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 3 questions to consider before turning your garage into a rental…
- What will it cost to turn your garage into a rental?
- How much should you charge to rent your garage?
- Is your garage secure?
Here is a link to a great article with specific answers to these questions…
How to find a renter for your garage space
You could always go the old-fashioned route and place a classified ad in your local newspaper. Ha! Who are we kidding? DON’T do that! Nobody reads newspapers anymore and certainly, nobody browses the classified ads like they did yesteryear.
The next best place to advertise is Craigslist. Although – with Craigslist, you never know what to expect with so many scammers abusing the platform. 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 is a fairly new startup – but they are making waves in the internet arena and they are doing a good job of getting the word out about their service. 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 also accomodates 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.
Preparing your garage to be a rental space
Step 1 – Clean 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 paint the floor and/or walls to give it some extra shine. Here are some industrial-style vacuum cleaners (available on Amazon) that will help you get the job done…
|TopTop||DEWALT||DEWALT DCV581H 18/20-Volt MAX Cordless/Corded Wet-Dry Vacuum||Prime||Buy on Amazon|
|Top||Shop-Vac||Shop-Vac 5989300 5-Gallon 4.5 Peak HP Stainless Steel Wet Dry Vacuum||Prime||Buy on Amazon|
|Top||Craftsman||CRAFTSMAN CMXEVBE17595 16 gallon 6.5 Peak Hp Wet/Dry Vac, Heavy-Duty Shop Vacuum with Attachments||Prime||Buy on Amazon|
|Top||Vacmaster||Vacmaster, VBV1210, 12 Gallon 5 Peak HP Wet/Dry Shop Vacuum with Detachable Blower||Prime||Buy on Amazon|
|Top||DEWALT||DeWALT 9 Gallon Poly Wet/Dry Vac||Prime||Buy on Amazon|
|Top||Stanley||Stanley SL18115 Wet/Dry Wet Dry Vacuum Steel Tank, 5 gallon/4.0 HP/50"||Prime||Buy on Amazon|
|Top||Shop-Vac||Shop-Vac 4 Gallon 5.5 Peak HP Wet/Dry Utility Vacuum with SVX2 Motor Technology||Prime||Buy on Amazon|
Step 2 – Secure your garage
You’ll want to provide a secure facility for your tenant, as well as providing 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).
Step 3 – Partition your garage
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…
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!