If you have some free space and are wondering how to make passive income quickly and easily, then this guide on renting your storage space on a peer-to-peer storage rental platform is for you. The extra space you have lying around in your home could become a very convenient way for you to earn extra income in the most passive of ways possible – by actually doing very little.
Can I make money renting storage space? Many property owners are complementing their income by renting space they can spare to people in need of it. There are a lot of spaces you could decide to rent out in your home. These may include your garage, guest room, shed, basement, backyard, attic, closet, or RV Pad.
“By renting out our empty space with Neighbor, my wife and I will make $900 this summer while giving back to the community.”
Quote form Neighbor.com
All these spaces can be rented out for a multitude of storage needs, and you can make money as a result of it. The passive income is obviously a huge benefit, particularly if your space has not been used for several months or years. Here is the process you can follow in order to make a passive income from your available storage space.
Steps to Renting out Your Free Storage Space
You should first find the right peer-to-peer platform to share your space on. It is best to go through these platforms to benefit from the protection offered (verified users, payment processors etc). We will walk you through choosing a platform to getting paid.
1. Identify the Right Platform for Your Space
There are many platforms on which you can post listings about your storage space, but many tend to focus on a particular kind of storage. For instance, there will be sites that focus entirely on garages, while others will focus on backyards.
So, make sure that the site you post your listing on has the sort of audience that would consider renting the space you are offering. This will better your chances of success as you will meet with customers who are specifically looking for the kind of storage space you are renting.
One main benefit to using these sites is that they will make it easy for you to find renters, and they help you sidestep some of the risks that would come with having to find renters on your own (ie. verification processes, managing payments etc). For these reasons, it is especially important to use a good storage space company.
Why Work with a Peer-to-Peer Storage Space Company?
Since many storage spaces are rented for long periods of time, sometimes months or years, you should make a point of ensuring that you work with the best possible clients to avoid getting into any problems. Generally, good storage space renting platforms offer the following unique benefits:
- They carry out verification processes to ensure users are legitimate
- They have insurance services that can ensure you enjoy a greater level of security as you rent your space.
- When using a good company, you can also get payment guarantees as they will make sure you get paid every month.
- Furthermore, you will get the chance to choose and pick which offers to accept based on your personal preferences.
Here are some companies you can choose from. Note: You may have to do further research if they are not available in your area:
2. Make a Peer-to-Peer Storage Space Rental Listing
Once you are sure you have found the perfect platform to market your storage space, then it’s time to create a listing. This is a simple process, and it boils down to describing the kind of space you are offering. You have to be as detailed as possible, in order to get the right attention from those in need of storage space.
Things to include in the description should include location, pricing, and any extras that come with the listing. Some things renters like to see in listing descriptions include smoke-free, pet free, humidity controlled, secure, locked and clean. If these things are true, feel free to add them to your description. Nonetheless, your space should always be as clean as possible.
Fortunately, with many peer-to-peer storage companies, making a list does not cost anything, and you will have no obligations afterward unless you enter into a deal to rent your space to someone who needs it.
3. Communicate with Your Potential Customers
Obviously, it couldn’t hurt to understand your customers better, since you will be getting into an arrangement that involves your property for potentially long periods of time. You can achieve this by chatting with them, or communicating prior to closing a deal to ensure that everything about them checks out.
This can also help you know whether the storage needs they have are appropriate for the kind of facility you are offering. For instance, you might be okay with someone storing furniture in your storage space but would refuse to have corrosive chemicals kept in the storage space you are offering.
4. Rent Your Space & Get Paid Passive Income
After you have found the right person, you can go ahead and make arrangements regarding how they will get access to your space and start using it. This is important so that they have an easy time moving in and enjoying the benefits of the services they have paid for.
This will be officialised with a formal contract through the peer-to-peer storage space app you chose. Since they are your facilitator, the contract will usually involve three parties (the peer-to-peer storage company, you and your client).
A good company will make the process very easy, and you will not have issues following up on payments as they will ensure that you get payments every month once your space has been rented out.
Some Tips to Consider as You Rent Your Storage Space
Understand that your earning potential will depend on things like the location of the storage space, its size, and the convenience it offers to the person renting it. Obviously, renting a closet will not be as lucrative as renting an entire garage or basement.
If the property has tenants, it is best not to rent out any storage space, as that can complicate your relationship with the tenants. Make sure to respect local laws when renting out storage space on your property. If you have any doubts, contact your local Town Hall.
How Passive is Renting Your Storage Space?
Renting out storage space is very passive. You do not require any additional set up costs as the space is already available. Besides, once someone rents it, no further action is required on your part and all that’s left is to receive payments for your services. Some renters may even request a year-long contract, which means this passive income method can be quite passive.
Like placing advertisements on your car, you can only have so much space to rent. This passive income method is not scalable as you can only rent the space you have available while respecting you and your family’s private space.
The costs of starting this business are pretty low. After all, you already have the space you want to rent and all you need is someone willing to pay for it. This would not be your experience with regular rentals where you have to worry about providing facilities like toilets, trash disposal and even get involved with the day-to-day demands of the tenants, which can cost you a lot of money over time.
However, you may have to maintain this space more than you did before. If it is your basement, you may have to invest in a dehumidifier to make sure the space stays dry. If it is an RV pad, you may have to provide certain amenities to ensure the space remains up to par despite the rain and hot sun.
Renting storage space is very simple. Peer-to-peer storage space sites that link you with potential renters have made this process especially easy for you. As long as you have a good space, and promote it properly on relevant platforms, then your storage renting skills are as good as those of any other person making money off this passive income method.
You don’t need to invest much time into this passive income source, even when you are getting started. Once you make a listing about the space you are offering, and have found a customer, all you have to do stock their stuff and wait for your check at the end of the month, which means you start making your money immediately you sign a contract, and that can happen on the day you decide to put up a listing advertising your storage space.
There are moderately low risks of renting your space for passive income. For instance, some renters might be late on their payments or make defaults, in which case the space might remain occupied by their belongings as you try to recover your money, which might result in potential income losses. Make sure the platform you sign up to can assist you in case of this. Also, you run the risk of renting out the space to strangers who might use the space in ways that can result in its damage. Make sure to be diligent and communicate thoroughly with potential clients before getting started.
Unlike the housing market, which is usually affected by things like the economy, storage facilities are quite immune to such problems as storage spaces are always in demand. On average, storage facilities are rented for long periods, from months to years. Therefore, seasonality shouldn’t get in your way or making passive income off your rental storage space.
ROI (Return on Investment)
The return on investment on personal storage space rentals is actually pretty good. There are commercial storage spaces out there, however, in most people’s opinions, they charge exorbitant fees. Therefore, when people like you can offer these services, you can be sure to get good money off your space, even while charging slightly better rates. Some people even manage to get a few thousand dollars a month, although most make hundreds of dollars off this lucrative passive income venture. Just take note that the platform will take fees on your rental.
Here are some articles and related questions to peer-to-peer storage space rentals.
How Much can You get Paid to Rent Your Storage Space? Neighbor’s site states that you can make just over $2000/year for renting out your basement, just over $1000/year for your RV pad, $684/year for your garage, and $84/year for your closet. According to Stashii a spare bedroom can make about $100-$200 per month, an average shed would be about $100-$150 per month.
How do I Rent Personal Storage Spaces? 1. Make sure renting your personal storage space is for you. 2. Find the best peer-to-peer storage space platform for your needs. 3. Create a listing 4. Communicate with your potential clients. 5. Rent your space and receive passive income.