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Renting Out Storage On Acreages
If you have a building on your land that’s sitting empty, make some money by renting it out for storage. People are always looking for places to put things they don’t have the room for such as campers, boats, machinery, animals, and hay.
Ann Johanns is a farm management extension program specialist at Iowa State University. She says your local extension office can help you determine rental rates, or ask around to see what the going rates are in your area.
Lease agreements will vary according to the age, condition, size, location, and efficiency of the building being rented.
"When you’re renting it out you want to make sure you’re covering your ownership costs. So the owner is going to be the one that’s paying for that structure itself as far as the insurance, and it would be part of their entire acreage, and they’re the one that’s paying the property tax on that piece of property," says Johanns. "When they’re looking at what they want to charge, they want to make sure that they’re covering those costs in that rental fee."
In general, owners cover the cost for major repairs and insurance coverage for buildings and structures. Tenants provide labor and management, and pay the cost of utilities and minor upkeep.
Don’t rely on a handshake to seal the deal. It’s important to have a written lease that specifies the details.
"The structure that’s being rented and then what it’s being used for so that both parties clearly understand what they are agreeing to. And then some details on maybe right-of-entry," she says. "What right-of-entry does the owner have, do they still need to go in and inspect that property? If there’s going to be improvements made or maintenance, which parties need to be responsible for that?"
It’s also a good idea to check out zoning laws that may vary depending on the building’s planned use and location.