How to rent out garages and workshop units

What owners of lock-up garages and small workshop units need to decide: who to rent to, pricing, applications, deposits, agreements, utilities and how to keep the admin small.

Short answer: Decide whether units are for storage only or for light work, price them against similar units nearby, screen tenants with a short online application, take a deposit, use a written agreement that covers use, utilities and notice, and bill rent and extras automatically every month.

Rows of lock-up garages, small workshop units and light-industrial bays sit between self storage and commercial property. Tenants are a mix of car enthusiasts, tradespeople, small businesses and people who simply need space. The demand is often strong, and the admin is where owners lose time.

1. Decide what the units are for

This affects your agreement, insurance, pricing and who you attract:

  • Storage only: closest to self storage. Short notice periods, month-to-month.
  • Hobby use: working on a car, a bike, or a project. Set rules on noise, hours and what tools are allowed.
  • Light business use: tradespeople and small workshops. Often longer terms, power use, and business customers who want invoices.

Check your zoning, building rules and insurance for the uses you allow.

2. Set prices

Compare with similar units nearby: other lock-ups, workshop units and large self storage units. Units with power, a roll-up door, vehicle access and good security command more. If you have a waitlist, you're priced too low.

3. Use an application instead of instant booking

For units where the tenant's use matters, ask a few questions before confirming: what the unit will be used for, business details if relevant, and contact information. Approve or decline with one click. It takes a minute and avoids the wrong tenant.

4. Take a deposit

A deposit covers damage, cleaning and unpaid rent at move-out. State in the agreement how much it is, what it covers and when it's returned, and track it until it's settled.

5. Write the agreement

On top of the usual rental terms, garages and workshops need clauses on permitted use, power and how it's billed, noise and hours, alterations, waste disposal, and condition at move-out. See what to include in a storage rental agreement.

6. Bill rent and extras together

Many units have extras: electricity, a second key, a parking space. Put them on the same monthly invoice as rent, and charge automatically. Business tenants will want proper invoices with your business details.

7. Keep the admin small

The admin for 20 units can quietly take a day a month: invoices, chasing payments, finding the right agreement, answering "is anything available?". Put availability and an application form online, collect payment automatically, and keep agreements and payment history in one place.

Where Unitgrove fits

Unitgrove handles garages and workshop units alongside storage and parking: online applications with approval, deposits, your own agreement with e-signature, rent plus extras on one invoice, and notice periods. It launches in 2027.

FAQ

How much can I rent a lock-up garage for?

It depends heavily on location, access and features such as power. Survey similar units nearby and adjust based on demand.

Should I take a deposit for a workshop unit?

Most owners do. A deposit protects against damage and unpaid rent. State the amount and return conditions in the agreement.

Can I use self storage software for garages and workshops?

Often, yes, but check for features like applications before move-in, deposits and billing extras such as electricity.