Passive (storage) income

[virgo]

Hiya

A few months ago, i posted a thread about renting out 2 garages in one of my IPs for $50 total a week...i posted the ad on gum tree and they were promptly rented out to a young chap who stored his 2 cars there...

Up to yesterday, i was still receiving requests about those bloody (pardon moi French) garages.....average 1 or 2 per week mainly from blokes who want to store their cars .....(tells you something about men's priorities in life eh?)

Set me thinking (hubby hates that )....i have a double garage in my PPOR ..atm there is a)table tennis table b) small fridge c) pots of paint d) sad looking tables and chairs....and that's it (you can see we are not handymen!)

I have PLENTY of parking on street, off street (cul de sac)....

So i am thinking of offering them for rent; i am going to charge $300 per month for those 2 garages and see whether anyone will bite!

Question: i know storage is scarce in Sydney...but does anyone know what is the standard storage fees like ? Is there a business model here?

 

[The Y-man]

Put in a postcode

http://www.kss.com.au/kblog/tag/kennards-self-storage

Remember to allow for differences in security etc

The Y-man

 

[Weasil007]

Hiya

Question: i know storage is scarce in Sydney...but does anyone know what is the standard storage fees like ? Is there a business model here?

Not sure on this, but I did see recently on the tele some guy in public assistance housing renting out his garage for a motza (was like $ 350 a week from memory). This guy was making money while the tax payer subsidised his rental accommodation..

 

[pinkboy]

Is your garage completely seperate from your house?

Would you let a complete stranger have access to your house and being able to come and go as they please? What happens if there is any illegal activity regarding the said car - are you aiding the criminal?

What if they start working on the cars and rev it up and make noise?

What if you go to the garage and get a tin of paint and scratch the car with the tin? Or even worse, a 'phantom' scratch has occured on the car and the car owner blames you.

Insurance. What if your house burns down and it is a classic car worth more than your house. Will you/they have coverage under this arrangement?

Too many 'what ifs' if you ask me!

pinkboy

 

[matto_]

PPOR and IP issues wouldnt be much different (I wouldnt have thought) except that the person who has concerns changes from owner to tenant.

An interesting way of obtaining an additional stream of income.

 

[virgo]

Put in a postcode

http://www.kss.com.au/kblog/tag/kennards-self-storage

Remember to allow for differences in security etc

The Y-man

Thanks Y-man! That was a great website....i find i am under market!
The market rent for a single car garage is 300-350 a month!!

 

[virgo]

Is your garage completely seperate from your house?

Insurance. What if your house burns down and it is a classic car worth more than your house. Will you/they have coverage under this arrangement?

pinkboy

The lease agreement is properly drawn up by my PM; there is a clause which states the owner stores at his own risk and is to buy his own car insurance...
He has his own padlock..

And yes, the garage is right at the end of the corner block

 

[westminster]

The lease agreement is properly drawn up by my PM; there is a clause which states the owner stores at his own risk and is to buy his own car insurance...
He has his own padlock..

And yes, the garage is right at the end of the corner block

I'm glad it's detached - I wouldn't do it if it was a garage which was attached to my house and it had an internal door.

It would be best if you could find one tenant for the 2 sides of the garage like you have in your IP - then there is no fighting over the line down the middle. Perhaps offer a discount for taking both sides?

 

[DaveM]

Virgo, I guess it depends on your feelings of where pure cashflow becomes to the detriment of your general lifestyle.

With your PPOR already having a granny flat attached, at what point is renting out garages etc and having more people coming/going to your home not worth the money you are getting?

Maybe a first step could be to approach neighbours and see if they want extra garaging, especially if they park on street?

 

[virgo]

Lifestyle

Hiya

Now come to think of it, it does sound extreme isn't it?

But hey! i am trying to get hubby to retire early..on passive income...we should be nearly there with all my creative ideas

Also, looking into our future where we will spend time overseas, this is a possible venture....

Anyway hope it was useful to some people thinking outside the square:)

P/S: now i have another chap offering me $300 pm for that rented double garage in Penrith and wants to knock the existing tenant out!!

 

[M.Investigator]

I think $300/month for 2 garages is a great bargain. I have seen single garage from $40 to £50/week. Others can price from between $350 to $400/month each space but it depends on the location.

 

[The Y-man]

I have seen single garage from $40 to £50/week.

Whooa... multicurrency statement. Does my head in....

The Y-man