3 steps you can do now so you can rent out your empty garage and create an extra income stream!
Your garage space is like a neglected treasure chest.
Think about it. If you have an empty garage that’s just filled with stuff you haven’t touched in years. Why don’t you just rent this space out to people who are desperately searching for a safe and affordable parking space for their vehicles?
Like the idea? Then read on to get some tips on how you can start earning a profit from your garage!
Prepare your garage
If you’re like me, you’ve probably misused your garage space and used it to stack boxes and boxes of old and unwanted items around the house.
You’ll have to let go of this habit when you decide to rent out your garage to others for a fee.
Forgetting to clean out all the nooks and crannies of your garage for rent might cost you 10 to 20 per cent off your agreed rental price. Thus, if you want higher profit margins with your garage rental business, you’re going to have to pick up those boxes and store them somewhere else!
It’s not just the clutter you’ll have to deal with. Don’t forget to hose down the walls and floors of your garage to get rid of those nasty cobwebs or unsightly stains. Also, make sure that you don’t have any protruding nails or exposed wiring, which may cause injuries to your tenant or his vehicle.
Last but not least, check if your garage door opens and closes smoothly so your prospective tenant won’t have any problem entering or leaving your garage space.
Lease your space for the right price
You don’t want to become that garage owner who has a coveted parking space in a busy neighbourhood, but can’t seem to find someone who’ll lease his garage even for a single day!
So what’s wrong in this scenario? If you have the right location, then maybe the only thing putting off renters is the price you’re asking for.
Large city garage spaces may be leased for £150 per month and up, whereas suburban spots may rent for £50-£100 a month. These are the standard rates at the moment and if the price you’re asking goes higher, then maybe it’s time to rethink and refocus the rates you are asking.
Closing a deal
There’s a great chance that your prospective tenant will ask for a discount before you can “seal the deal.” When this happens, be prepared to explain the reason behind the rate. If they continue to ask for a discount despite your explanation, then giving them a £5-10 discount a month may be a fair rate for both parties.
You’ll also have to prepare a contract of lease between you and your tenant. This contract must state the payment terms, time of payment, modes of payment, and the duration of the lease.
I’ve encountered some newbies who don’t draft contracts and I’m not surprised to learn that their renters almost habitually make late payments. If you don’t want to encounter this kind of headache in your property then better draft a contract right now!
Browse through my website to learn more ways on how to earn extra cash with your property!