Thinking out of the box or garage?

Hi Mark,

We have two recent articles on this subject for your reference

>> https://www.property118.com/renting-out-a-garage-agreement-template/61675/

>> https://www.property118.com/parking-spaces-garages-good-buy-let-investment/71477/

This will not be an AST though. Please see the .Gov site definitions below:

Assured shorthold tenancies (ASTs)

The most common form of tenancy is an AST. Most new tenancies are automatically this type.

A tenancy can be an AST if all of the following apply:

you’re a private landlord or housing association
the tenancy started on or after 15 January 1989
the property is your tenants’ main accommodation
you don’t live in the property

A tenancy can’t be an AST if:

it began or was agreed before 15 January 1989
the rent is more than £100,000 a year
the rent is less than £250 a year (less than £1,000 in London)
it’s a business tenancy or tenancy of licensed premises
it’s a holiday let
the landlord is a local council

Other tenancies

There are other tenancies that aren’t as common as ASTs, including:

excluded tenancies or licences
assured tenancies
regulated tenancies

Excluded tenancies or licences

If you have a lodger living in your home and share rooms with them, like a kitchen or bathroom, you may have one of these. This usually gives your lodger less protection from eviction than other types of agreement.

Ltd Company? seems like a lot of hassle for such an investment

rent is as agreed–no ast

Dear Mark

There is certainly demand for garage lettings, presumably in line with the demand for self storage.

I agree with Neil that such lettings are certainly not covered by AST agreements. you need a simple licence agreement and make sure that the user is purely domestic and not running a business. You should check from time to time that they are not being used for the storage of rubbish or waste as it can cost a lot to get them cleared when the tenants disappear.

Regards

Graham

Reply to the comment left by “terry sullivan” at “05/07/2016 – 12:49“:

The ltd company wasn’t to bad to set up and run just a paper work exercise, it helps with reducing my tax liability. It’s only s small income granted but 5k is a nice holiday a year. The yield isn’t to bad either at 14% minus running costs, Thank you though I wont go down the AST route.

Reply to the comment left by “Graham Bowcock” at “05/07/2016 – 12:53“:

Thank you Graham, I haven’t completed on the sale yet, I have placed an advert in gumtree, and have been overwhelmed with enquires clearly some will be time wasters, I was going to take a deposit for each garage. Which should cover any rubbish if left. The deposit was going to be held with my deposits web site.

Reply to the comment left by “Mark Dotford” at “05/07/2016 – 13:13“:

Mark

There is no need to protect the deposits. Deposit protection only applies to ASTs.

Graham

I agree on the point of no requirement to protect deposits.

The type of agreement required is a licence, not an AST.
.

Reply to the comment left by “Graham Bowcock” at “05/07/2016 – 14:02“:

Thank you for your feed back Graham..

Reply to the comment left by “Mark Alexander” at “05/07/2016 – 14:13“:

Thank you Mark, less paperwork lovely.

Having rented out a garage hassle free for 10 years the current tenant has stopped paying and left her partner’s wrecked car in it. Police have confirmed from the VIN number that it is indeed their car (no plates) and not stolen. Does anyone have any idea how to gain possession? I have the tenant’s address, copy of driving licence and bank statement plus working email address but phone number has been changed.