Subject: [Shop-talk] Renting garage space

From: PJ McGarvey <[email-masked]>
Date: Thu, 9 May 2013 10:22:30 -0400 FILETIME=[A3AAE1C0:01CE4CC0]

Toying with the idea of *considering* bidding on a house with an amazing
garage... rest of the house is great too, just has some other issues and the
price is a bit high...
So to explore way how I might be able to recoup the price of said house - alot
of which I think I think are b/c of this garage - I'm wondering how I can go
about maybe renting space whether it be just storage or possibly also work
space.
Garage:Detached, 1300 sq. ft. - will fit 7 cars, I would consider giving up
about 4 cars worth.10 years old, has plenty of power, air compressor lines,
heat/AC, lighting ... all top notch.  Security system included,   Private cul
de sac in nice area.  I've seen the house and garage with a realtor.
One of my main concerns would be the neighbors, and not annoying them
especially since I'd barely know them upon move in.  So starting out small
might be a good thing.  Current owner is a big car guy, lots of hot rods, so
the neighbors can't be all that surprised.  hehe.
So I'm wondering for those who are garage space renters or rentees, what or
how you charge, what you are getting/including, and what kinds of things are
guys looking for in rental space, do you sign any "gentlemens" agreements, and
what kinds of issues do you run into?
The wife is all for the garage and how we can u$e it, so THAT'S out of the
way.. :-)   The attached 2 car garage would be a step up for me already, so at
least we'd have a place for other stuff.
BTW, my current house was previously owned by a 70 year old widower, who
rented the 2 car garage to a Viper and built drag Mustang when I bought it.
Thanks
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From: "Matt" <[email-masked]>
Date: Thu, 9 May 2013 15:33:13 GMT

I am a landlord, but not just garage space.As has already been mentioned, I
think the critical issue will be insurance - specifically liability.
Interesting concept though.  Finding the right person will make or break the
endeavor.Just to bound the downside - go rent Pacific Heights then add power
tools! The rental agreement would take some effort - shared is trickier than
exclusive.Everyone has to secure their own stuff?...How do you feel about
sharing tools?Could your renter conduct "for profit" work there?Can he or she
come and go at any time? Perhaps the best option would be a friend that wanted
to keep a car there, but even then I would still have a written agreement.
many issues... I would say buy it if you like it and can get a fair price, but
don't consider rental income unless you are prepared to rent out the entire
shop. In a perfect world, the 2 car attached would be enough for you and your
renter was Mr. Goodwrench and you could negotiate a preferred rate and he
would do all of your wrenching for you in the shop he was renting for big $$.
Good Luck!  Keep us apprised.
Matt

---------- Original Message ----------
From: PJ McGarvey <[email-masked]>
To: Shop Talk <[email-masked]>
Subject: [Shop-talk] Renting garage space
Date: Thu, 9 May 2013 10:22:30 -0400

[email-masked]

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From: [email-masked]
Date: Thu, 9 May 2013 11:33:24 -0400 7.0.1|January 17, 2006) at 05/09/2013 11:33:28, Serialize complete at 05/09/2013 11:33:28

PJ, I let me throw in my findings on renting space.

First, INSURANCE!!!!  Make sure you can get the appropriate coverage.  Not 
just for the contents, but for a person on your property that injures 
themselves.  If you are renting 'off the books' your policy might deny any 
payout in the event of a claim leaving you PERSONALLY on the hook.

You will also need to check your zoning.  This isn't a problem in most 
places, but in the areas it is an issue, you can most likely forget about 
doing it.

Next, if you do this, make sure you have a iron clad contract on what 
happens to the contents if the unit is unpaid.  It would be very easy for 
someone to stop paying, and you are stuck trying to legally get rid of the 
contents.  Or worst yet, you get rid of them, and he sues you because you 
didn't do it 100% legally.

Finally, it really is hard to make that much money renting out spaces. 
Here, in NJ, a top dollar storage unit that can hold a car is about $100 a 
month in a REAL facility with 24 hours electronic access, fully insured, 
etc.  I'm not sure if you can make it worth it for all the headaches and 
hassles and liabilities you are exposed to.

When I do 'storage', its mostly motorcycles for the winter months.  I'm 
paid in fully when I pick them up from the person (then I take photos 
before I load them).  Then I just drop them off at a predetermined date.
Or I store boats, trailers, rvs for people I know.

Again, I hate to say it, but insurance makes most great business 
opportunities unprofitable.

Eric P
"Be as beneficent as the sun or the sea, but if your rights as a rational 
being are trenched on, die on the first inch of your territory." Ralph 
Waldo Emerson 
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From: [email-masked]
Date: Thu, 9 May 2013 11:33:24 -0400 7.0.1|January 17, 2006) at 05/09/2013 11:33:28, Serialize complete at 05/09/2013 11:33:28

Scott writes....

>Man, there is NO way I'm letting you keep your car in my garage, whether 
>you pay me for that or not.
>At least not without enough insurance to ballast a small aircraft 
>carrier. And maybe not even then.

PJ, this reminds me of one other thing to consider.  Years ago, a barn 
that was housing over 30 classic cars caught fire.  They all burned to the 
ground.  Cause of the fire was one owner's carelessness.  As a result, all 
the vehicles (some VERY HIGH END) were lost and most insurance policies 
didn't pay because they weren't stored 'properly.'

That means, you have one renter's car catch fire, and everything could be 
lost, his unit, the other renters, AND YOUR STUFF.  (and I hope the garage 
isn't attached to the house.)

FWIW

Eric P

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