Renting Out Storage Space

Having extra space on your property can be put to good use. If you have an empty basement, garage, shed, or unused rooms, you can make extra cash renting them out as storage units.

With a good plan, you’ll make enough to pay your rent and grow your side hustle into a huge enterprise.

Here’s how you can rent out storage space as a side hustle, get to know the advantages and prepare for the risks of this venture. 

An Overview of Renting Out Storage Space: A Primer

When you rent out storage space as a side hustle, you allow businesses and individuals to store their valuables in a space you own for a fee. 

It’s a rental contract that states how long you’ll hold your client’s items on their behalf and for how much. 

Like most ventures, you need to be committed to your business because while you’ll be making extra money, it also comes with its challenges. Some rules and restrictions dictate how you’ll run your business depending on your location and the city’s laws. 

How Much Can Renting Out Storage Space Earn You?

If you rent out a small space like a garage, basement, or shed, you can make up to $5,000 per year. But if you’re dealing with ample storage units, profits can go up to $15,000 per year or more. 

The cost also varies depending on where your business is located and the demand for storage space. If the cost of living and rentals in your neighborhood is high, you’ll have to charge more to keep up with the expenses. 

How Much Does it Cost to Start a Renting Out Storage Space Side Hustle?

It’ll cost you $500 – $5000 to start your side hustle, depending on the size and location of your rental space and the amenities it offers. The costs cover other expenses like repairs, insurance, marketing, and security. 

If your space is in poor condition, you may spend about $100 – $500 on cleaning and repairs to give renters a good first impression. 

Renters insurance may cost you $300 – $1000 depending on the size of your business and the goods you’ll be storing. 

You’ll also need to advertise your side hustle, costing you about $200 – $1000. And since security is the face of all storage space, you may spend $100 – $1500 or more depending on how valuable the items you’re storing are.

Where Can You Find Gigs to Rent Out Storage Space?

Believe it or not, you don’t need to lease land and build storage facilities from scratch for this business. You can work independently, use your house as a commercial space, or join various websites and apps that provide opportunities for business people like you. 

Here’s how to go about it:

Where to Independently Find Gigs Renting Out Storage Space

If you want to save money on commissions, you can work independently and use your house as a storage facility. You’ll have to advertise your service and evaluate your renters yourself to avoid potential scams.

Word of mouth will go a long way to ensure renters know about your extra space. Tell your friends, colleagues, and neighbors about your spare rooms or empty garages, as they may have items that they need space for or know people who do. 

Posting classified ads on Facebook and Craigslist and wrapping your own car with ads will help you get the attention of potential renters. 

Just keep in mind that before you accept any clients, you should draft a rental agreement and ask for a security deposit in advance. There are many scammers out there, and a lease agreement will protect your business interests. 

Gig Economy Companies That Offer Gigs Renting Out Storage Space

Enrolling your rental space in gig economy platforms will give you broad renter access and take away the burden of advertising. And the best part is that there’s more than one way to make money from your unused space. 

You can rent out your entire home while on vacation for special events, lease storage or parking space, or offer RV storage on your property. 

If you have extra parking space or two garages, you can enlist them on sites like neighbor.com or StoreAtMyHouse. Posting on these sites is free, and running your ad may cost you a small processing fee for every payout. 

Other companies, like Share My Space, PeerSpace, and JustPark, will connect you to renters; some may even provide liability insurance. 

Why You Should Consider Renting Out Storage Space As a Side Hustle

You can make a lot of money with storage companies. Consider the following reasons to rent storage:

• It’s a community asset: Storage units give people and businesses a safe place to store their belongings, freeing up more space in commercial and residential settings.
• It’s a gateway to multiple businesses: Owning self storage facilities paves the way for various business opportunities. You can offer parking spaces for vehicles, sell moving supplies, rent out moving trucks, and provide a tenant protection plan. 
• High demand: Even with unstable economic conditions, people still buy more stuff every day, forcing them to pay for spare rooms to store the old items.

Problems With Renting Out Storage Space

Like any other business, you can expect problems with leasing storage space. Take a look at the following challenges:

• Poor management: Most owners manage their storage units because the wrong staff will destroy your company. And since a small team usually runs this business, finding competent staff takes time and effort.
• Tenant issues: Some tenants can be difficult to deal with. They may delay payments, demand you waive their late fees, or try living in the storage space, even though it’s illegal.
• Security concerns: Any crime in your commercial space will affect your reputation. Heavy security is expensive, but your clients will leave if you ignore these measures.

Frequently Asked Questions