With the rising prices of rent for both residential and commercial spaces in Sydney, more and more people are thinking of strategic ways to source the space they require within their budget. There is an increasing demand for transforming additional spaces in a home to become more functional, such as attic conversions and garage conversions which provides an opportunity for an additional stream of income through renting out your renovated area as a living space or as an office space.
As mentioned, one increasingly popular location within a house, that many homeowners are now utilising as additional functional space is their garage. A garage renovation might be one of the solutions to offset the rising cost of housing in the region.
Before you proceed with transforming your garage, consider these things:
- determining the demand for rental space in your local housing market
- the layout of your garage in itself and in relation to your house
- legalities (permits, guidelines, advertising, payments, for both residential and commercial activities, your insurance)
Renting out your garage can present an opportunity to make money. There may be great demand for a space like your renovated garage in your suburb, you will find people are looking for additional spaces for a variety of reasons, including a small business owner who needs space for inventory or storage or a space to undertake their remote work, or perhaps a young adult moving out of home for the first time.
Decide on the terms of the agreement
Once the space is renovated and you have an interest in renting the area, you need to consider the terms of your agreement and have it in writing to protect both sides. The terms including the amount of rent, access, and use of space are things to discuss with your new tenant.
The amount of rent will be determined by the market rate in your area for that kind of living space, the amount of access they require as well as taking into consideration the investment you have put into transforming your space. For example, your tenant may only require occasional access to your property as they are using your garage primarily as a storage facility, compared to someone who is living in your garage.
Private rental management is an option but will involve more of your own time and resources as opposed to hiring a rental manager. In some areas, renting out a space like this can only be privately rented, you need to familiarise yourself with the local regulations in your council.
Advantages of Renting Out Your Garage
Whether you plan to rent out your garage to a private tenant or a start-up business, it is a win-win situation for you. Renovating and transforming your garage gives you a lot of benefits—not only is it an additional source of income, but this renovation requires you to get rid of the accumulated clutter that’s gathering dust in the dark in your garage. Some property layouts even allow the freedom to put dividers between the garage and other living spaces, so you don’t have to compromise on your family’s privacy while renting out your garage.
If you look at local postings for spaces like yours in Sydney, you might see that prices constantly get more expensive. This means that demand is high and you are sure to find a suitable tenant at a reasonable price. Depending on the suburb or the city council you are currently in, the demand will be different. If you live near universities, why not convert it to a mini bed space for students? If you live near a hospital, there may be staff that is looking for short-term rental spaces. But if you don’t like the idea of constant traffic through your property, you can always put up your garage for storage purposes.
When planning your garage transformation, it is a good idea to have the input of a builder to help plan your renovation. Engaging different trades will be necessary to transform your garage into usable space, such as an electrician to ensure safety standards are met, or engaging a plasterer to insulate the space. Insulation in garage transformations is very important because most walls are just brick walls. Plasterboards are great for insulating ceilings and walls, adding a touch of aesthetic to the look.
Garages can be an extra living space when renovated well. They can be comfortable, well insulated, spacious, private—and an added stream of income! Your garage can be transformed into a bedroom, an office, or even as a storage room for someone else. After weighing in on our discussion above, we hope that you can see the benefits of garage conversion.
For more details about garage conversion and renovation, talk to a qualified plasterer and top-notch renovation expert. Paul’s Plastering has been delivering professional renovation and plastering services for over two decades now. Give Paul a call today for a free quote.