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Everything you need to know to rent a garage

Everything you need to know to rent a garage

Are you one of those lucky people, envied by everyone, who owns a garage? In addition to being an extremely coveted property, the garage becomes extremely profitable if it is to transform it into a rental property. But how can you rent your garage without taking any risks? Can we do this if we are only a tenant and not the owner of the property? Should a written contract be drawn up? We take stock.

Renting your garage: the real good idea!

If you want to invest in real estate to invest your money and can't necessarily afford to buy a house, don't be discouraged! Buying a garage is an excellent solution and a gentle way to invest in your first property. Count, depending on the location, between 10,000 and 25,000 euros. You don't necessarily need credit, and if it does, the bank will obviously grant it to you much more easily, since these are small sums. In cities, the garage and the parking lot are rare and precious goods. You will therefore a priori have no difficulty in renting your garage. You also risk less the problems of unpaid bills since they are small sums. Finally, the final persuasive point: the rate of return on a garage is between 6 to 10%; it corresponds to your profits after having withdrawn your expenses for maintenance costs, your possible credit… For the rental of an apartment, the rate of return is rather 4 to 6%. Convincing, right? What if you are a tenant only in the garage? Subletting is prohibited for accommodation, not for a garage. On condition that you inform the owner and obtain his agreement and not to generate profits by subletting the garage more expensive than at the price of your own rental. And of course, this sublease ends at the end of your lease.

The rate of return on a garage is higher than an apartment

Renting your garage: how to do it?

If you own a home and a garage, you can rent them independently. And even if your garage does not depend on housing, you can of course also rent it. In this case, the garage is subject to the rules of ordinary law applicable to contracts for the rental of things. It is therefore up to you to establish the amount of the rent. To do this, the easiest way is to consult similar ads: the best way to stick to market prices. Another important point: fix the duration of the lease. A written contract is not essential because the garage rental is not subject to any specific regulations. On the other hand, it is more than advisable to establish one to avoid any conflict. Make sure that the description of the premises appears, the price of the rent, the duration of the lease, the amount of the security deposit, the conditions for the revision of the rent and the terms of termination. And how do you find your tenant? You can count on word of mouth, as there are many requests. But also, ask merchants near you if you can place ads in their shop. Or, place your ad online on sites like Monsieurparking.com.

Garage rental is not subject to any regulations

Renting your garage: what does that change for tax purposes?

Note that if you rent your garage, you will be subject to the payment of property tax. However, you can request reimbursement from the tenant. The rental of the garage is also subject to payment of VAT unless its rental of the garage is accompanied by accommodation.

Renting your garage: the alternatives

Let it be said, the garage is a profitable property! Another option, if you want to rent it and make even more profits: transform it into a storage place. Laure Courty is the founder of Jestocke.com. She found that renting your garage like a furniture repository can double your profitability since in this specific case you do not rent this area depending on its location but you rent the property per m2. An idea all the more attractive as cars are increasingly deserting urban centers; this alternative therefore makes it possible to operate garages differently by diverting them from their primary use. However, check with your condominium that you have the right to rent your garage as a storage space. Another original idea, to make the collocation of garage! We also talk about "sharing garage". The principle is simple: you only use part of your garage and make a profit by sharing it! Or, you use it sporadically and want to rent the place when you go to work. Again, it is better to take shelter behind a contract to protect yourself in the event of a dispute. There are sites to simplify exchanges like Jepartagemongarage.fr.

Turn your garage into a storage unit for even more benefits