Are you planning on turning your garage or the space above your garage into a rental? If so, this is a great decision to make because it will generate cash flow on a monthly basis but there's also a process you need to follow which will guarantee success.
Turning a Garage into a Rental Property: What Will it Cost?
The cost of turning a garage into a rental property will fluctuate significantly depending on the garage’s current condition and future purpose. If you have to completely overhaul the space (adding plumbing, electricity, and the like), the cost will be at the higher end of the $5653 to $16,211 range (from HomeAdvisor).
Keep contractor fees in mind, which Home Advisor notes are a major factor in the costs of turning a garage into a rental property: “Most contractors charge a flat fee that’s based upon 10 to 20 percent of the final project cost, while hourly builders earn an average of around $15 per hour.”
The first step in turning a garage into a rental property is getting an estimate of the work that you want done. You can then determine what’s important to do now and what can wait until later.
DIY Garage Renovation Projects
In addition, consider the tasks that you can DIY in turning a garage into a rental property for a lower cost. Here are a few things you probably didn’t realize you can do on your own:
New epoxy flooring: You can apply epoxy floor paint yourself. Plus, it’s easy to clean, can take a lot of wear and tear, and can brighten up your space for a relatively low cost. It’s also great for people who struggle with allergies: “A lot of people with asthma or allergies opt for epoxy floors, because it seals the concrete and provides lower levels of dust and allergens,” explain experts at Garage Floor Epoxy.
New light fixtures: Once the wiring has been taken care of, selecting the right fixtures can literally cast your garage in a new light–and you can spend as much or as little as you want.
New “walls”: Instead of building walls, divide the space with standing separators. Wayfairhas a wide variety of dividers that can increase the style and function of your space.
How Much Should I Charge to Rent My Garage?
When you’re deciding how much rent to charge, there are multiple factors to consider. For example, you should take into account how much square footage you’re offering, whether the garage is climate controlled, and where it’s located. When turning a garage into a rental property, you should know that garages in urban settings will be higher on the price bracket than garages in rural or suburban areas.
As a general benchmark, think of the space as a storage unit, and adjust the rent accordingly. This cost breakdown from StorageTalk can help you to determine what is reasonable to charge per month and still generate a profit. You can (and should) also contact a leasing agent or talk with another garage rental landlord for insights into the going rates where you live.
Is My Garage Secure?
Before making the garage available to renters, take a serious look at the space’s security. Can it truly keep your home, your tenant, and their belongings secure?
There are 3 main points of vulnerability to consider when you’re turning a garage into a rental property: the garage door, any other doors to the outside, and the interior door from the garage to your home.
Garage door: The experts at Phoenix Garage Master suggest verifying that the door openers and keypad functions are in excellent working condition: “As a landlord, you’re responsible for their occupancy; you don’t want to be held accountable for any accidents and injuries that happen within your property.”
Exterior door: What are the locks like on any doors to the outside? If they’re old, consider upgrading to something new and more secure. A keyless, digital lock is a great option for tenants-when someone moves out, you simply reset the code.
Interior door: If the tenant will not be utilizing your home space–i.e. sharing the kitchen or bathroom–make sure that your interior door has a secure lock on it. While you’d like to trust your tenant, you never know who they’ll have over; and keeping your home secure has to come first. Consider upgrading this lock and installing curtains in any door windows (if you have them).
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