How Much Can I Rent My Garage Out For?

Dear Neighbor, 

My wife and I just bought a new home and are looking for extra ways to make money on the side. The hope is that this additional income will fund our upcoming renovations. 

One idea I had was to rent out my garage. It’s detached from my home, and I don’t really use it. I was thinking I could rent it out as a parking space or even a place to store boxes and whatnot. 

But before I list my space on Neighbor, I want to make sure it’s worth my while, as it could be a hassle finding a renter and doing a background check on them and everything. I’d love your insight on how much I should charge per month for my garage to make this “side hustle” worthwhile. 

Thanks! 

Factors That Determine Earnings from Renting Out Your Garage

Dear Homeowner, 

Thanks for trusting us at Neighbor and for reaching out for advice! Renting out your garage is a great way to make some extra cash on the side, especially if it’s just sitting as an unused space. 

The amount that you can charge for renting out your garage depends on a number of factors, including your location, the size of the garage, and the intended use. 

Let’s break down each of those factors so that you know how much passive income you can expect to generate! 

Factor #1: Location and Its Impact on Average Garage Rental Rates 

The first factor that affects garage rental prices is where you live. If you live in a high-traffic area or city where garages are limited, you can charge more per month. 

Here’s a quick rundown of the average rates for residential garages in various U.S. cities.  

While these are city averages, the amount you can charge largely depends on where you’re located within the city. If you’re near a business district, shopping area, or bustling downtown center, you can charge a premium. However, if you’re on the city’s outskirts, you won’t be able to charge as much.  

Factor #2: Size and Capacity 

As with a house or apartment, the bigger your garage is, the more you can earn when renting it out. 

Note: Small, one-car garages will rent for slightly less than the averages listed above, while deeper and wider garages will go for slightly more. Because large city garage spaces are in high demand, these spaces will get rented fast. 

If you have a two-car garage, you can rent it out as two separate spaces or cater to wider vehicles (like camper vans) that can’t park in traditional garages. 

Additionally, if you have a garage large enough to accommodate a boat or an RV, you can charge even more per month. Boat and RV storage is extremely difficult to find in many parts of the country. Low supply means you can hike prices without risking high vacancy rates. 

Factor #3: Amenities and Features

The more amenities and features your garage has, the more you can charge for monthly rent. For example, security is a huge concern for people renting a garage space, so installing security cameras, deadlocks, and other safety measures will increase the value of your garage space. 

In addition to safety features, other amenities renters value include: 

• Climate control 
• Heat during the winter 
• Adequate lighting 
• Shelving for storage 
• Epoxy flooring 
• Electronic opening devices or deadlocks
• Automatic garage door opener functions with remote opener 

Factor #4: Intended Use 

Renting your garage out as parking or storage for someone’s vehicle is a safe and easy way to make money. However, if you rent it out for other purposes, you may be able to charge even more! Here are a few ideas: 

Self Storage Unit

If your garage isn’t well-suited for storing a vehicle, it’s not a total waste. You can still rent it out to someone who needs a storage unit to store furniture, appliances, a classic car, bikes, motorcycles, boxes, and other belongings. As long as you can lock your garage door and offer around-the-clock access to your renter, this is a great and easy option. 

Living Space

If you want to maximize your monthly rental earnings, renting your garage as an apartment is the way to go. While not all garages are suitable to rent as living space, some of them are. Here are some baseline requirements if you want to rent your garage as an apartment: 

• Heating and cooling 
• Electricity 
• Plumbing 
• At least one bathroom 
• A small kitchen area 
• Insulation 

Essentially, your garage apartment should have the basic amenities featured in a standard family home. If you decide to go in this direction, you must adhere to local zoning laws and regulations. 

Workspace

One of the more creative ways to make extra money on your garage rental is to rent it out as a workspace or workshop. It will need all the amenities mentioned above, and there may be even stricter code and zoning requirements to navigate. 

However, if you decide to go this route, you can charge even more than you would to rent it as a living space. You can charge an average of $1,000 to $2,000 per month in most parts of the country, as small business owners are desperate for affordable office spaces. 

Legal Considerations and Safety Measures

Regardless of how you rent out your garage space, there are a few legal considerations and safety items to keep in mind. 

Local Zoning Laws

Zoning laws are different everywhere in the country. Therefore, it’s important to check your local zoning laws and regulations to confirm that you’re even allowed to rent out your garage. 

Local laws and regulations will also dictate the purposes for which you can rent out your garage and any requirements you need to meet. 

Rental Agreement

You should also draw up a lease or rental agreement for your garage, just like you would for renting a house or apartment. Here are a few basic things your lease should include: 

• The start and end date of the rental agreement 
• The day of the month the tenant has to pay rent 
• Whether it’s a month-to-month or term lease 
• Penalties for late payments or violating the lease agreement

If you’re not savvy when it comes to lease agreements, Rocket Lawyer has an excellent and easy-to-use option. 

Final Thoughts 

If you’re serious about earning extra income and monetizing the unused space in your home, consider turning to Neighbor. Becoming a Neighbor host is easy (and the most convenient way to rent out your garage space. 

Garages are currently the most sought-after rental spaces in the country, which means you should have no problem finding an eager tenant.