What should you look for if you want to rent out a garage?

What should you look for if you want to rent out a garage?

An easy way to make money is to rent out a car lot or garage(box). This gives you a certain monthly income and the investment is not large compared to a home. 

Rental agreement common law

To avoid discussions, it is best to have a written rental contract and registered. This can then include agreements related to the rental guarantee, repairs,... etc. You can use a tenancy agreement of common rental law for this purpose. After all, the rules of the Residential Tenancy Act do not apply here. Include all the agreements you want to make with a prospective tenant in the contract to avoid any discussions later.  For example, who bears the costs in the event of defects, whether the tenant has to take out fire insurance, etc.

VAT

Renting out a car parking space or garage (box) is subject to VAT regulations. As a lessor, you must therefore meet obligations relating to VAT, such as applying for a VAT number, filing a VAT return, charging VAT on the rental price, etc. Both private individuals and professionals are obliged to do so. 

VAT exemption

You are not required to charge VAT as a landlord if you have a 'small business'. A small business can be either a company or a natural person. Your turnover may only not exceed € 25,000. This exemption has the advantage that you are exempt from a number of fiscal and administrative obligations

Attention: You are also not liable for VAT if you rent out a garage in combination with a house, if this garage is part of the same building and if you rent both to the tenant.

Inventory

It is compulsory to have an inventory drawn up for a garage. Just as for a house, it is not compulsory to have this drawn up by an expert; you can also do this yourself in consultation with the prospective tenant. The place description must be signed by both parties in that case.