If you have extra room in your garage, you might wonder if there is any way to turn it into a money-making venture. By renting out the space, you can create a source of income, giving your budget a decent boost. If you’re trying to figure out how to make extra cash by renting out your garage, here’s what you need to do.
Clean Up the Rentable Area
Before you do anything else, you need to take some time to clean up the rentable area. That will help you make sure that you have enough room available to make renting out your garage a viable money-making option.
Along with removing any of your belongings, go the extra mile when it comes to cleaning. Additionally, consider refreshing the space with new paint, updated shelves, new door and window seals, or other upgrades that make your garage more enticing.
Research Laws in Your Area
Once you know you have enough rentable space, you need to research laws in your area regarding this kind of activity. Rules can vary from one city to the next, so you need to make sure that you’re able to adhere to them before you list your garage space as available.
Additionally, if there is an HOA, you may need to check those rules as well. An HOA can put limits on how spaces are used, so make sure it’s allowed before you move forward.
Set Up Partitions
If you aren’t renting out your entire garage, you’ll want to set up some partitions. A divider gives the rentable space physical boundaries. Additionally, it reduces the odds that the renter will mess with any of your belongings on the other side.
You can either put up temporary walls or purchase premade dividers. In either case, make sure they improve the look of the space once they’re in, increasing the appeal of your garage.
Examine Your Locks
Another preparation step you need to take is examining your locks to see if they are the right option for your garage’s new purpose. After all, you’ll be giving someone else access to the space.
Not only do you need to keep everything secure, but you need to make sure that the renter access doesn’t introduce any unnecessary risks. For example, if the side door into your garage uses the same key as your front door, giving a copy of that key to the renter means they could get into your house if they decided to try the key in that lock.
For side doors, you may want to consider a reprogrammable keyless door lock. That way, you can provide renters with a unique code that only works on that door. If you go with a smart lock, you can also check to see if the door is locked when they leave right from your phone, allowing you to improve the overall security.
Decide How You’ll Find Renters
If you want to rent out all or part of your garage, you’ll need to find someone willing to rent out the space. Generally, you have two approaches. First, you can handle it all yourself. Second, you can use a platform or app that manages garage rental arrangements.
Often, managing it all yourself gives you the most earnings potential. However, it also increases your workload dramatically and may put you at greater risk when it comes to liability. Still, it’s worth considering if you’d prefer a higher degree of control, are comfortable managing contracts, have some marketing chops, and are willing to handle any payment collections.
If you go with a platform or app instead, finding and managing a renter usually takes less effort. Additionally, there are typically payment processing services included, and you may get some liability and property coverage to offset some of the risk. However, you will have to pay a fee for using the service, the exact amount of which can vary by platform.
Take High-Quality Photos
Images can have a big impact when you’re looking for a renter. Make sure you have high-quality photos of the rentable garage space. Along with a picture that shows the full room, take close-ups of any features that renters may appreciate. That way, they can learn everything they may want to know in relatively short order.
Create a Description
Your rental listing is also going to need a description. Along with discussing any key features, make sure to include the physical dimensions of the rentable area. That way, renters can determine whether the space is large enough for their needs.
Additionally, you may want to create a bulleted list of any rules or restrictions. For instance, if storing certain kinds of materials in garages isn’t allowed in your city, add that to the list. You can also say whether your garage should be considered storage space only or if you’re open to the renter using it as a workshop. That way, there’s no confusion.
It’s also wise to outline any access-related rules. Will the renter have free rein to come and go at any time, or is access only allowed during certain hours? Can they give someone else their door code to retrieve an item for them? Can they open the garage door or only use the side door?
You should decide if there is a minimum lease term, as well. There are pros and cons to long-term agreements and month-to-month arrangements, so consider them both. However, you’ll need to state which options are available in your description, so decide before you list.
By addressing those points, you can set clear expectations. That way, only renters that will agree to those terms are likely to reach out.
Determine Your Price
Whether you use a platform or handle the rental yourself, you’ll need to set a monthly price for the space. Spend some time researching what’s available in your area and what others are charging. Along with other rentable garages, check the cost of storage units.
Setting a competitive price point is essential if you’re going to secure a renter. Compare the quality of your space to what’s otherwise available in the area, and set a price that’s fair.
List or Market Your Space
Once you’ve handled everything above, you can list or market your space. If you’re using a platform, the listing process is typically streamlined. Just make sure to read any rules regarding what can or can’t be in the post, as well as what’s required in the listing.
If you’re handling it on your own, you can use whichever channels you choose. Social media can be a solid place to start, as well as Craigslist or online newspaper classifieds.
Move in a Renter
After you find a renter, you’ll need to take care of some of the legalities. If you’re using a platform or app, it may manage the contract for you. If not, you’ll need to meet with the renter to get that handled.
Once the agreement is in place, you’ve officially rented out your garage. Determine when the renter will move their belongings in and start collecting payments.
Have you tried to make extra cash by renting out your garage? If so, what was your experience like? Share your thoughts in the comments below.
- 5 Ways to Make Extra Money at Home
- Money Tips: 8 Easy Ways to Eran Cash with Little Effort
- 5 Overlooked Ways to Save More Money This Season
If you enjoy reading our blog posts and would like to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started. Check out these helpful tools to help you save more. For investing advice, visit The Motley Fool.