Renting buildings out for storage

[Bruce Almighty]

We're looking at doing this, where should we start ?

We have excellent road access & are close to 3 towns.
Traffic wouldn't have to go through our village or narrow lanes to get to us as we are nearer to the towns or motorway.

We have various styles & ages of sheds that could be used. Some could suit a biggish business, others could suit private individuals.

Thanks in advance

 

[Doing it for the kids]

Find a local agent, show him round and get his opinion on rental values.

Depending on what he says will determine if you go down route a, spends as little as possible and accept less rent or b) spend as much as is needed to hit ceiling rents.

Then think about planning.... 2 options... depends on neighbours and how you take life risks!

Sometimes getting planning for a few units is easy so if a few more get let it's not noticed.

Don't do communial toilets, if the figures look good spend the money and get it done right. I have and so pleased I didn't skimp, turned a pile of knackered buildings in to a damn good return.

Various tips I have found in renovating them cheap and making them look good, take your time getting the right tenants, they invade your farm daily, they need to be decent.

 

[ewald]

See what is available in the area - if there is a glut of high quality units, consider a slightly more cheap and cheerful approach. Management time is essential - owed rent is rarely retrieved, keep on top of it. Being around can nip problems in the bud.

 

[Davey]

take your time getting the right tenants, they invade your farm daily, they need to be decent.

I'd say this could be the most important thing as you do hear the horror stories of farmers ending up with hundreds of bales of rubbish they thought was silage.

The only thing I would add is to clearly define the outside space to each tenant and be strict. We had a tree guy who would occasionally leave logs or trailers outside of his unit and it quite quickly went from being every now and then for a couple of days to being the norm.

 

[Days of thunder]

As above really. Do be carefully who you rent too get some references they usually have been somewhere else check it out. Have a written agreement of what they can and can't do easier to start the way you want things and than try to change them. Most people are pretty good but some will just take the pee. Get there home address and land line number and check that out they really don't like you turning up at their house if there is a problem.

 

[MrNoo]

Get a decent contract signed (tennant pay costs) so if the sh!t hits the fan you have some legal recourse. Rents, get these done by Direct Debit, if the tenant shy's away from this then they won't be worth having. Business rates (tenant pays) a good way to utilize old redundant buildings, we did it here many years ago and it brings in nearly 100k/yr but unfortunately not part of my business.

 

[Doing it for the kids]

I'd say this could be the most important thing as you do hear the horror stories of farmers ending up with hundreds of bales of rubbish they thought was silage.

The only thing I would add is to clearly define the outside space to each tenant and be strict. We had a tree guy who would occasionally leave logs or trailers outside of his unit and it quite quickly went from being every now and then for a couple of days to being the norm.

Indeed. I used to use google earth. Use a drone now, makes it v clear and cuts out arguments.

It's worth it though, best use of farm buildings there is, esp with planning and cost of funds as it is