Whether you are a homeowner who wants to make some extra money or a renter in need of storage space, renting out property for storage is a great option. It can be a great way to make some extra money and/or provide much-needed storage space. In this blog post, we will discuss the ins and outs of renting out property for storage, including the potential benefits and risks associated with this type of business. We will also provide some tips on how to make sure this venture is profitable and successful.
Types of Rental Spaces for Storage
The main types of spaces to rent are garages, barns, land, warehouses, and parking lots. Each is unique and each can charge a different amount. With the large variety of spaces that can store items like cars, boats, and trailers, nearly everyone can make some type of passive income through storage.
Rent Out Your Garage for Storage
If you own a garage and don't use it for parking a car, you can use it to make some extra money. You can rent out your garage for storage to people who need it. You can use online marketplaces like STOW IT, Neighbor, Craigslist, and Facebook Marketplace to market your garage for storage. You can set your own rates and determine what types of items are allowed in your garage. You can also use these services to advertise your storage space. Renting out your garage for storage can be a great way to make some extra money. Renting out your garage for storage can be a great way to help out your community while also making some extra money.
The pricing we see for 1-car garages varies between $100 to $220 per month depending on factors such as proximity to large cities, access the renter has, and security features of the garage.
Rent Out Your Driveway for Storage
Maybe you don't have a garage space to rent out but you have an extra spot in your driveway. Renting out your driveway or garage for storage is a great way to make some extra money. Many people don’t have enough room in their homes to store their belongings, so they look for storage solutions outside of their homes. Renting out your driveway can be an easy solution to make passive income.
Pricing for a driveway should be between $50 to $125 per month and largely depends on the size of the driveway and how secure the neighborhood is.
Rent Out Your Barn for Storage
If you happen to have a barn or outbuilding on your property then you can make some serious income from storage. We recommend using these types of spaces for vehicles and typically only vehicles 25ft and under. Larger vehicles pay less usually on a dollar-per-square-foot basis. You can rent the barn for storage usually at a rate of about $0.50 per square foot and we suggest breaking up the barn into 10x20 type spaces to maximize the earning potential. Most renters don't care about the flooring of the barn so usually, you do not need to make any improvements to start renting your outbuilding for storage.
The pricing we see is between $100 and $150 per car per month.
Rent Out Your Backyard for Storage
If you have some extra backyard or land around your home that you don’t know what to do with, consider renting it out for storage. It’s an easy way to generate a little extra income while optimizing the use of your property. As long as the property is secure, people may be interested. We have property owners that have 10+ acres and some that have space for one extra car. The yard spaces can be grass, dirt, gravel or a mixture. It all just depends on what type of vehicles you are looking to store. Larger vehicles need gravel surfaces for storage whereas small trailers can be stored on grass.
Pricing for outdoor storage varies from about $45 to $70 per month for an under 20ft space all the way up to $130 per month for a 40ft outdoor space for a larger RV.
Rent out a Warehouse or Parking Lot for Storage
If you have a commercial property like a warehouse or parking lot, you can also make money and reach new clientele by marketing the space for storage. We typically see these types of spaces used for vehicle storage. Extra parking spaces in a parking lot can be filled with long-term tenants that do not require much in and out access. Extra warehouse space can start making money by storing RVs, boats, cars, and trailers long-term or seasonally. These types of storage can make a lot of passive income, especially if the warehouse storage or parking garage storage is located in a large city.
For commercial spots storage usually ranges from $0.50 a square ft to $0.75 cents a square foot.
Tips for Renting your Space for Storage
List on an Existing Storage Marketplace
You can certainly do your own marketing as well but we recommend listing on sites like STOW IT and Craigslist. STOW IT handles the marketing and payments whereas Craigslist is just a listing marketplace, so you will still have to worry about collecting rent.
Take Great Photos of your Storage Space
Photos are the first things potential renters look at. Ensure that the photos are clear, the space is clean, and you have multiple photos to show potential renters. This is a good place to start your listings and once the spot is clean you can measure the size of the rental space. Here is a guide to taking great Airbnb rental photos. Many of the same tips can be used when taking photos of land or a garage.
Price Your Storage Space Competitively
Typically you will want to be 10 to 15% cheaper than nearby storage options. Many traditional storage facilities offer amenities like restrooms, on-site staff, 24/7 access, and security cameras. Your property may not have all of these so you will have to undercut their prices to be competitive with potential renters.
Get Started Renting Your Property Now
Sites like Neighbor and STOW IT are just beginning in this market and right now is a great time to get started. In a few years there will be millions of people looking to rent space out for storage, so getting business now will lead to more reviews and higher placement on these sites in the future.