Garage rental-potential tenant wants to work on cars?

therenoguy

Inspired Forum Member
Registered
Hi there,

I have a heated, detached garage in NE Calgary that I rent for $240 a month. The house is rented to a family. A guy wants to rent it and work on his cars-not professionally. What are your thoughts on that? If it did it I would bump up rent to $310 to cover extra utilities and he would agree to protect the floor, and not work professionally for others.

Thanks for your input
Keith
 

Sherilynn

Real Estate Maven
REIN Member
We have allowed it several times and it has only been a problem once. That tenant left a half a load of scrap plus several open buckets of various toxic fluids. (At least he didn't dump the fluids down the sewer.) So it took a few hours and a trip to the eco station to get the place cleaned up. Of course I kept his $250 deposit.
 

Jules

New Forum Member
Registered
Personally, I would stay away from that. The cost of cleaning up/disposing of any toxic chemicals usually exceeds any security deposit, not to mention old tires and scrap metal left behind, fumes from spraying lacquer, etc. Also, the neighbours may complain to the City that there is a business operating out of the garage, which would not be licensed for such activities. If you are keen to rent out the garage, I would look for a contractor who just needs to store equipment/supplies or someone who just wants to park their car for the winter.



Jules
 

kfort

Senior Forum Member
Registered
Can't see that being a problem. I hav a tenant in a detached that uses it a storage for appliances and an area to repair them. No issues yet really. Just be clear to your tenant(s) what is required of them and monitor closely to make sure they are following the rules!
 

Sherilynn

Real Estate Maven
REIN Member
You must ask a lot of questions beforehand, for example:

  • what types of repairs will you be doing?
  • on your own car or others?
  • how often would you be working in the garage?
    would anyone be working with you?
    would you be working in the winter?
    if so, how would you be heating the garage (if no furnace)? {Determine a utility premium for winter.}

You must also make your rules and requirements very clear. For insance, I don't allow painting or major repairs, and I don't allow the garage to be heated when no-one is working in it.



There have been times when I have suspected that the person was just telling me what I wanted to hear, and I didn't rent to that person. But in 6 years of garage rentals on 4 garages, only one minor problem seems like a pretty good batting average.



We also have the benefit in Edmonton of having free disposal of household and automobile toxic fluids.
 

invst4profit

New Forum Member
Registered
As long as you are prepared to check the garage personally on a regular bases (monthly) you should be fine but make sure you do. I would trust no one regardless of your "rules".
 

Sherilynn

Real Estate Maven
REIN Member
You can sometimes rely on your house/suite tenants to update you on any potential issues. However I agree that you should check the property more than you otherwise would.



Have a look around the back side of the garage (the one without a sidewalk or driveway) and be sure that parts etc aren't being dumped. And have a look at the garbage for illegal dumping of toxic fluids.
 

therenoguy

Inspired Forum Member
Registered
Hello, and thanks for your responses. I'm going to rent to him. I'll be demanding a $500 deposit because he's working in there. He says just his own vehicles, and the tenant in the house will let me know pretty quickly if there is a parade of vehicles coming and going. The extra rent should cover the utilities in winter and in summer it will be a nice shot in the arm to cash flow.

Cheers
Keith.
 
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