Seeking advice on renting out a parking space inside a garage

Who owns the Garage? Who owns each space? Even if your Garage is a Parking Condo, where you own your space; I am sure the Board has some rules & regs on what & who can park. Most Parking Lots ?Garages need a license to rent out parking spaces. Without a license you cannot evict them so easily. Most require the vehicles parked to be registered & Insured, without Insurance you open yourself to all manner of liability.

resident2

in General Discussion 4 years and 4 months ago

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krobertson

in General Discussion 4 years and 4 months ago

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I have a 2 car garage that I’m not using and I’m considering renting out the one or two spaces for parking only (no storage). I’m looking for suggestions / ideas /feedback on the risks and the terms for the rental from folks who have or is renting parking spaces. I’m planning on a month to month lease with a security deposit and the standard background/credit checks you would do in an apartment rental.

If the tenant ever stops paying, a lawyer once told me the eviction process is the same as the one for housing court for an apartment rental – e.g. expensive legal fees, serving multiple notices, months of delay, etc etc. Anyone have experience/knowledge of this? If it was a outdoor parking spot on my driveway I wouldn’t be as concerned, but since its a garage space where the tenant has keys I believe it would require a formal eviction? I assume just changing the locks would be considered a illegal eviction in court?

Anyone know how the parking garages / condos/coops rentals do it? Do they require a full on application / background check? and how much security de posit do they require? Do they structure the lease in a certain way that makes it easier to reclaim the space in cases of nonpayment?

If the lengthy eviction process is required. I’m thinking I need a pretty stringent application process (credit / income / employment checks). and possibly a pretty high security deposit (evictions are expensive)… but I’ve haven’t heard of anyone paying $1000+ security deposits for parking spaces.

Also any suggestions on specific causes to include such as vehicle must be registered / insured or restricting the pace to only a certain agreed vehicle?

andriywww1990 | 4 years and 4 months ago

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over here single garages seem to rent for about 200/mo. brooklyn may be different. i rent space in a double garage to keep my unused work equipment and the arrangement is quite informal; i did not have to go through all of that you mention. the other garages rented around here also seem to be for seasonal things like motorcycles that are not used in the winter and cars that may be unregistered (collectible) and my thoughts are that if i were to rent a garage out, i would prefer it be an unregistered vehicle that is in storage and the only time i see the owner is when they are paying the rent (and if the car is a high end classic, they will be a careful sort of person and will worry about your property as much as their car). i did not make any security deposit for the space i have and until i read this here, i would have thought that if something were to happen and i did not pay the rent, he would just lock me out until i did or even threaten to put my stuff on the street.

not sure if a space is worth a 1000 a month over there. if it were and i had one, i would rent it. if it were say only 400, i might not rent it – if i had all that concern.

dorkofwindsor | 4 years and 4 months ago

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I rent one of these spaces from a building owner. A retired lawyer actually. The agreement was an email to which I responded OK. Maybe its easier for a lawyer to do business this way? Anyway, here it is with relevant details starred out:

************ (Landlord) hereby leases to ******** (Tenant) space #X in the garage located at ************

The terms are:
1. The monthly rent is $*******
2. The rent is due on the first of each month.
3. The tenancy is on a month to month basis.
4. The month to month tenancy may be terminated by either party by notifying the other in writing on thirty day notice. Thirty day notice shall mean 30 days, plus any unexpired part of the month in which notice is given. Eg. If notice is given on the 15th of October, Tenant is responsible for the rent due until November 30th. So too, if Landlord gives notice, the same rule applies, but the tenants shall have the option of ending the lease at the earlier of the two dates.
5.Tenant is responsible for any damages to the premises.
6. Checks are to be made payable to: ******************

By *********
Dated: July 22, 20–.
Ok?

edit: this is for a 4 car garage on the typical Brooklyn corner lot

greenworks | 4 years and 4 months ago

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I think on this forum a few years back, someone rented out their garage, the person stopped paying, and it was a total mess to get them out.

It boils down to this in my mind: ask yourself how badly do i need that 200 bucks/mo?

andriywww1990 | 4 years and 4 months ago

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Op, dont use that 200 queens price i mention as a brooklyn price. The parking issues are more severe in brooklyn than where i live. If i had to rent the same space in brooklyn i would expect to pay double.

dorkofwindsor | 4 years and 4 months ago

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Not sure where this is, but park slope is substantially more than $200 bucks a month. If you can get $700/mo or more for both, that’s not pocket change.

If its not a tenant in the building and attached to a lease, why can’t one remove said car and ask questions later? Its just personal property, you’re not putting a human out on the street or risking a child’s education because of displacement. Literally everyone parks on the street. Tow truck –> put car on street in open space on alternate side day. Someone is going to go to court over that? If they have money and time for court, why not pay the rent? Id call bluff every time.

I mean if were are going to go there, there are plenty of other scenarios with plausible deniability……. like finding your car gone one day and no one saw anything. The renter knows that the landlord has the collateral.

greenworks | 4 years and 4 months ago

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It depends where OP is in Brooklyn – out by my area in Brooklyn, $125/mo is going rate.

I’m not that far from Steve, either, FWIW.

Closer in, Brooklyn Heights, etc, def more than 200.

krobertson

in General Discussion 4 years and 4 months ago

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@Dorksofwindsor did the lawyer ask you for a credit check / etc when you rented and did you put down a security deposit?

The open air parking spots where I am goes for like $225 each. I’m guessing my covered private garage will likely go for around $300 each. Definitely, not a windfall but still a decent little extra income. My concern is exactly what Booisgolden said, it could be messy and expensive to get someone out for not a lot of rent. Changing the locks when they drive their car out is probably the easiest thing to do. Just got to rent to someone who has a nice car and not a junker, in which case they might abandon it.

I managed to find a lease agreement online for two of the large parking garage operators. One apparently just tow your car to a private pound and stick you with the pound fees and the other files a lien on your car after 30 days to have it removed. But it seems like you may need to be a registered business with the DCA to file a lien or have a tow company be willing to take it.

dorkofwindsor | 4 years and 4 months ago

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Housefix: no credit check or deposit. I would think it would be the exception that someone would have the gall to have rolling property worth $$ and challenge paying rent while the car is in your garage that you have access to. I’d be interested to see that thread where someone had a problem, Was there an apartment lease connected to it? That won’t be the case with you. Lawyers obviously have a vested interest in suggesting you need them badly. Its Brooklyn, where parking spaces are in serious demand, so you can probably ask for what you want. You can also put in terms that state what will happen if they don’t pay the rent and what will happen to their car – even if it were not technically enforceable, the tenant sees this on paper. What’s the worst thing that would happen? You lose some months of rent but it isn’t paying the mortgage. Sometimes you have to have perspective.

mozeeatupu | 4 years and 4 months ago

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If evictions follow the same rules as housing, changing the locks is definitely illegal.

metaphase | 4 years and 4 months ago

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Where is your parking spot? I’d be interested if it’s near my house in Park Slope.

ceci | 4 years and 4 months ago

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If you send me your email, I have a sample lease for a garage spot I rent!!!