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Should You Rent Out Your Closet for Spare Cash?

Jun 06, 2020 by Maurie Backman

If there's one thing homeowners and apartment renters alike can agree on, it's that more storage is better than less storage, and that storage also tends to come at a premium. If you're fortunate enough to be sitting on a healthy amount of storage space, you may be able to use it to your financial advantage. That is, if you're willing to rent out some of your closet space.

Monetizing your home -- without a tenant

You've probably heard of people renting out a room in their home, or a finished basement, and in some parts of the country where parking is hard to come by, it's not unheard of for people to rent out space in their driveways. Well, you may not want a full-time tenant under your roof, and you may need your driveway for your own vehicle. But if you have extra closets in your home that you aren't using, you may be able to rent them out for cash.

How on earth might you set up that sort of arrangement? Sites like StoreAtMyHouse help people with extra storage space connect with people who need it. You list the space you have available, set your rates, establish some rules, and then sit back and wait for renters to sign up.

Why would someone want to rent out your closet space? It's simple -- the savings involved. Storage facilities can be extremely expensive in major metro areas, so it may be more cost-efficient for someone in need of storage to rent out your spare bedroom closet than to pay for a unit in an industrial park. And depending on where you live, your closet may be more accessible and convenient too.

Is renting your closet the right move for you?

If you're looking for a relatively painless way to make extra money, then giving up a closet seems like a no-brainer, especially if it’s one you rarely use. On the other hand, if you're the type who doesn't like other people invading your living space, then it may not be a good idea. While you will get to set the rules with regard to when your renters can access their belongings, you'll also have to be reasonable and give them relatively frequent access. As such, you may find that the inconvenience factor isn't worth the money you stand to collect.

Furthermore, there's the question of what happens to your renters' stuff if your home is burglarized, or sustains damage from a fire or flood. Are you then liable to compensate the person or people who rent your closet? Will your homeowners insurance pick up the tab? These are details you'll need to iron out before renting out your closet -- and you may not want to do the legwork involved.

There's also the possibility that you just plain may not want to give up some of your precious storage space, and that's okay too. Even if your spare closet is effectively your personal dumping ground, and it's technically been begging to get cleaned out for months, it's your closet, and you have every right to use (or abuse) it. And while the idea of extra money may be nice, no one would judge you for keeping all of your storage to yourself.

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