Renting the car space separately: is it worth unbundling?
Improve the performance of the property you own.
Best for: Unit owners with separately titled or allocated car spaces
In many unit and townhouse markets, a car space or storage cage bundled into the rent is worth less to the owner than it would be let separately, especially where car spaces are in short supply and tenants without cars don't need one.
POTENTIAL IMPACT
$50 per week standalone car-space rent = $2,600 gross per year
What to check
- Whether your local market has separate demand for car spaces (inner-city, university areas, high-density precincts are common)
- What standalone car spaces are currently renting for in your building or area
- Whether your title allows the car space to be leased independently of the dwelling
- Body corporate or strata rules on separate letting of car spaces
Who can help
Property manager
Comparable rents for the dwelling with and without the space, and standalone car space rents.
Body corporate manager
Whether strata rules allow separate letting of the space.
Strata search
Title confirmation that the space can be leased independently.
TAKE ACTION · CALCULATION
View calculation guide
Run this quick comparison with your property manager's numbers.
What happens next
If separating is legally possible and financially better, your property manager can advertise the dwelling and car space separately, or offer the car space as an optional extra to widen your tenant pool to those without cars.
Important considerations
- This is general information, not personal financial or legal advice. Confirm specifics with your own adviser before acting.
THE HOLD QUESTION
Is every square metre of this property earning what it could, separately or together?
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