If you have extra space at your house but are not in love with the idea of having renters on site, there are still ways you can make money with your real estate. Sure, people always need places to live, but they also need places to put their stuff.
Renting a storage space is always an option, but modern technology and the financial independence revolution have changed the concept of self-storage. There are now web sites that connect people looking to rent space for storage with people with space to rent. This is a win-win situation as the person looking for storage can find it at a lower rate while the person providing the space has a way to make extra income.
Read on to find out more about how you can make money storing things for people.
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The Neighbor App
Of course, you can always advertise your space to people through Craigs List and social media sites to let them know you have room for storage, but this can be a complicated and even dangerous prospect.
First, there is the issue of having strangers in your house. Furthermore, if you are stashing someone’s personal belongings, there is always the chance that you can be falsely accused of stealing something if all items are not accounted for.
That’s why going through an established service may be the best option.
The Neighbor app seems to be the go-to when it comes to connecting people looking for storage space with people that have storage space.
You can register with the Neighbor app for free. In addition to offering storage spaces for rent, it also provides services to help people rent other types of spaces like:
- Parking spaces
- Outdoor sheds
- Closet space
If you have a space to rent, start out on the app by entering your phone number, identity information and email address. You can also have a background check if you choose to do so.
Once all your information is confirmed, you can list your space for rent. The app will suggest a list price which you can use, or you can set your own rate.
When your listing is up on Neighbor, potential tenants will contact you through the app to discuss terms. If a deal is struck, the tenant will send out a request to rent. Hosts have 48 hours to accept or deny the request.
If the request is accepted, the tenant’s credit card will be automatically charged each month and the rent will be deposited in the owner’s bank account.
There are no contracts. Tenants and hosts must give 30 days’ notice if a move out is required. There is a service fee of 4.9% and 30 cents for every transaction the owner receives.
Neighbor Risks, Safety and Liability
Although there are no contracts involved with Neighbor, the service fee includes a $25000 renter’s guarantee and a $2 million host guarantee to protect parties if the storage items or storage space gets damaged. That way, as long as neither party is found responsible for the incident, no one can get sued.
Neighbor also has a policy that bans the storage of firearms, illegal drugs, waste, perishable food and stolen goods. The host must make sure the tenant meets these requirements.
It’s also important to realize that, even though the person renting your space has had their identity confirmed through Neighbor, they are still a stranger that is being let into your property. Although no incidents have been reported with Neighbor rentals, there is always the risk that something may happen.
There is also always the possibility that the tenant or owner may decide to cancel their lease early. When this happens, the app steps in to try and find a resolution to the problem. If they are unable to do so, a $60 eviction fee will be charged that must be split between the owner and the tenant.
If the tenant stops paying, Neighbor will continue paying on their behalf. It’s not up to the owner to evict the tenant. Neighbor will handle everything that’s involved in the eviction/audit process.
While Neighbor seems to be the most popular app of its kind, we did come across one website called StoreAtMyHouse.com. Around for over 10 years, this web site is similar to the Neighbor app in that it allows you to list your space for free. Then it helps connect you with potential tenants in need of storage space.
Storing items in your house comes with its share of risks, but if you’re up for it, it’s a great way to bring in passive income. Do you have extra space you can rent to earn more money?