Here at SMART, we see a lot of owners make improvements on their single-family rental homes. Most of the time, this is very wise — especially when it comes to providing extra storage space for tenants.
One of those improvements we get a lot of questions about is storage sheds. Does adding one to your rental make financial sense?
Installing a shed usually involves a significant upfront cost, but if the returns are strong then it may be worth it. At the same time, permits may be required as well as homeowner association approvals — which can slow up the process.
In general, industry experts don’t think a shed will add much to a property value. While it may look attractive and add extra storage space, the real payoff will actually come from attracting and retaining tenants. Not from the shed itself.
The Pros of Having a Shed
Tenants looking for a comfortable rental home may find strong appeal in having some extra storage space, and be willing to pay a little extra for the convenience. Particularly if the home itself doesn’t have a large garage, many closets or storage areas, a shed may be the difference between easily attracting a quality tenant or struggling to lease your property. Tenants with a lot of personal belongings may be equally drawn to a property with a shed, saving them the cost of renting a storage unit in an off-site facility.
The Cons of Having a Shed
Depending on who your target renter demographic is, you may find that a storage shed is neither wanted nor used. An increasing number of renters are embracing a simplified lifestyle, reducing the number of personal possessions.
Storage sheds can also sometimes invite trouble, and they do require regular maintenance. If your tenant has filled the shed to the ceiling with personal items, it may make performing routine maintenance very difficult. Storage sheds can also become a problem if your tenant creates a hoard of personal items which may attract insects and rodents. This could potentially increase the cost of property repair and maintenance, while ultimately having a negative effect on the value of your property.
At SMART, we can help make the choice of adding a shed easier by providing quality information about your market and your property’s potential. Give us a call!