How landlords can increase their rental yields renting out their garages.
If you go online or look in your area for community notice boards, you will see a lot of people are renting their spare car parks and garages for extra cash flow. A lot of experienced landlords already know how to use their assets to extract as much value as possible.
For example; some landlords will rent their property out room by room and others will also rent out a car park or garage separately as well. This however, does depend on the type of property and location off course, but has already shown to work well with students and young professionals. Being open to extra ways to utilise a rental property can be a real eye-opener.
Do People Actually Rent Garages?
All over the world self-storage usage is growing and most articles cite reasons such as increased urbanisation and an improved economic outlook. That is, more and more people are moving towards cities and consequently they have less overall space. However, these people are still spending money and buying things, and people need extra space for these things and what we’ve found is; they will happily pay for that extra space.
People will pay for convenience and if you have an empty garage that is just down the road or even next-door, it’s far more convenient than tracking down one of these storage places that may not be as handy. And when you compare square meters, people can get a huge bargain.
On Anyspace, right now we have people storing everything from tools and compressors to cars and boats. Some people may just need a place to leave them while they are away on holiday or only need access to their goods a few times a year. Overall it's a lot less work and maintenance than managing a tenant for a room or house. Small business owners are also loving the idea for long term storage as well, as commercial space requires huge commitments and can have huge expenses.
How Much Does A Garage Rent For?
The amount you can charge for garage space can vary depending on many factors ranging from location, size, access, and usage. We have seen single car garages for as little as $30 per week to a two car garages in a good location for $140 per week. Either way that’s an extra $120-$560 per month in income that you didn’t have before.
For example: If you purchased a property at $500,000 and then rented it for $500 per week that’s a yield of 5.2%. However, if the same property had a good garage and you rented it separately at $120 per week on top of normal rent that would now bring your yield up to 6.4%.
We think it's worth looking into!
Professional Landlord Tip
So lastly, here’s a little tip for you if you start collecting properties with garages. After a while, to run your rental business you may start finding your personal garage starts to fill up with parts and pieces to run your properties. From light bulbs you purchase in bulk to curtains and handles and everything in-between, they all start taking up space. At a certain point that space may start compromising the space you have for storage at home. So why not keep one of the garage spaces to yourself?
Check out anyspace.co.nz - list your garage today to make the most out of your rental property.