Two part question:
Does having a garage help the unit rent faster, or does it really matter? (In your area, but I plan to invest in Texas)
2nd ?: Do you charge an application fee…to help with the background checks, etc.
Dave
retiree,
Yes, having a garage is a plus. What I normally do is offer the house with and without the garage. For example, you can offer the property for $600 per month without the garage or $700 with the garage. If the tenant doesn’t want the garage, I rent the garage separately.
Yes, charge an application fee, especially if you’re going to do a credit check (which costs money). I charge $25.
Good Luck,
Mike
In my area, NYC, rentals are quite competitive, and I’m able to rent out my units with or without the garage or driveway.
Like Mike, I’m able to rent the garage out separately, and garages go for $150/month in NYC, while driveways goes for $75/month.
In NYC, even low end commercial space is comparatively expensive, and some people rent garages to store tools and equipment. I’ve been renting the garage to an electrician from a neighboring county, who needed some space to service customers in my county, and he’s been renting the garage for the past 15 years, and currently pays me $125/month.
I’m not charging him full rent as I rent out the driveway separately as well, and through the years, I rent them out to neighbors or tenants at a reduced rent so they’ll take care of sidewalk sweeping and snow removal. I rented the driveway to retired neighbor for over 15 years, till he passed away, for $35.00 in the beginning ($50 rent less $15.00 for cleanup) and the advantage was he told everyone he’s the building manager, and with him sitting in front of the house next to mine in the summer, and by his front window in the winter, I got 24/7 coverage of my house for the price of $15/month.
A current tenant pays $50/month, and does snow removal.
One benefit I find in renting garages and driveways to neighbors, especially at an absentee rental, is I got another pair of eyes watching the place, and “neighbor homeowners” thinks more like homeowners than tenants.