NFU Mutual Smallholding Insurance

Author Topic: Renting out space for storage - how much to charge etc ?  (Read 2383 times)

greengumbo

  • Joined Feb 2015
  • Aberdeenshire
Renting out space for storage - how much to charge etc ?
« on: April 25, 2017, 12:19:06 pm »
I'm wondering if you can help me. I have a smallholding and someone I know wants to put a shipping container on our land to store equipment and as an irregular work space. He is happy to pay electricity costs etc and has asked how much I will charge him for putting it and keeping it there for a longish period.

I have no idea ! Do any of you good folk have similar arrangements or know what the rough costs are for it ?

Thanks.
Voss Electric Fence

Buttermilk

  • Joined Jul 2014
Re: Renting out space for storage - how much to charge etc ?
« Reply #1 on: April 25, 2017, 12:31:46 pm »
No idea of costs but be careful about creating a tenancy.

angie

  • Joined Jul 2016
Re: Renting out space for storage - how much to charge etc ?
« Reply #2 on: April 25, 2017, 03:38:35 pm »
Likely to get a visit from the enforcement officer :raining:

landroverroy

  • Joined Oct 2010
Re: Renting out space for storage - how much to charge etc ?
« Reply #3 on: April 25, 2017, 07:10:11 pm »
As he's supplying the container I would charge £10 - £15/week depending on size.
Wouldn't worry about creating a tenancy - it's commercial not agricultural so the minute he stops paying the rent is the minute he has to leave (with or without his container!), as he then becomes a squatter.
You're  not likely to get a visit from the enforcement officer unless someone complains and if they do you then have several months  in which to argue the case, before you actually have to remove the container. So - worst case scenario - he has to remove his container. It probably won't happen and if it does it's not the end of the world.
Rules are made:
  for the guidance of wise men
  and the obedience of fools.

regen

  • Joined Jan 2013
Re: Renting out space for storage - how much to charge etc ?
« Reply #4 on: April 26, 2017, 12:28:06 pm »
Depends what he wants it for! - irregular workplace? electricity supply? Growing cannabis perhaps!

Regen

landroverroy

  • Joined Oct 2010
Re: Renting out space for storage - how much to charge etc ?
« Reply #5 on: April 26, 2017, 04:09:43 pm »
In which case I would up the rent to maybe £30/week and ask for an advance payment of £500 for the electricity.
Rules are made:
  for the guidance of wise men
  and the obedience of fools.

mart6

  • Joined Sep 2014
  • Notts / Yorkshire border
Re: Renting out space for storage - how much to charge etc ?
« Reply #6 on: April 26, 2017, 05:15:22 pm »
In which case I would up the rent to maybe £30/week and ask for an advance payment of £500 for the electricity.
Jokes aside have you asked what his intended use is ?
And have a serious think before you decide, if you get a visit by a enforcement officer do you need
the attention ?
Once under the spot light they tend to keep a eye on you

landroverroy

  • Joined Oct 2010
Re: Renting out space for storage - how much to charge etc ?
« Reply #7 on: April 26, 2017, 11:41:12 pm »
I'm not joking! It's happened to me - the massive electricity bill and the visit by the enforcement officer, and it's not the end of the world!
So why be so bleak about the whole thing? Greengumbo only asked about what to charge - not a worst case scenario (and then some) assessment of what in your opinion is likely to go wrong.
Rules are made:
  for the guidance of wise men
  and the obedience of fools.

mart6

  • Joined Sep 2014
  • Notts / Yorkshire border
Re: Renting out space for storage - how much to charge etc ?
« Reply #8 on: April 27, 2017, 08:34:53 am »
I'm not joking! It's happened to me - the massive electricity bill and the visit by the enforcement officer, and it's not the end of the world!
So why be so bleak about the whole thing? Greengumbo only asked about what to charge - not a worst case scenario (and then some) assessment of what in your opinion is likely to go wrong.
I thought you were joking, but nothing would surprise me anymore.
Was just pointing out if you get a visit from a enforcement officer he will have a good look at everything.

And it may end up raising other issues that were un noticed.

Yes you can appeal ect but would you really want all the crap if it was unavoidable, and mine took 18 months from start to finish. And it aint fun having it over your head even if your sure you are in the right.
Especially for £15 a week imo.

If everything is as it should be at your small holding then no worries

greengumbo

  • Joined Feb 2015
  • Aberdeenshire
Re: Renting out space for storage - how much to charge etc ?
« Reply #9 on: May 01, 2017, 11:56:04 am »
Hi all - the guy is a friend and runs a beekeeping business out of his flat in the town but needs some space for a bit of storage and then for a workshop during the odd time in the year. My barns are full with my own stuff so he had suggested putting a container at the side of the field. He said he would only use electricity irregularly but would pay.


landroverroy

  • Joined Oct 2010
Re: Renting out space for storage - how much to charge etc ?
« Reply #10 on: May 01, 2017, 03:02:08 pm »
Good luck then. Sounds interesting. Does the beekeeping business involve bees?
Rules are made:
  for the guidance of wise men
  and the obedience of fools.

farmers wife

  • Joined Jul 2009
  • SE Wales
Re: Renting out space for storage - how much to charge etc ?
« Reply #11 on: May 03, 2017, 06:56:09 pm »
Youll be lucky to see an enforcement officer over a shipping container on a yard  I think they have better things to do. I charged £75pw just for the container space.  Just to cover the hassle of people driving back and for and the fact that its still cheap as chips for a space plus they used lots of space around with scaffolding etc.  In the end they defaulted and I took the container as payment. Worked out ok in end. 


Make sure they do not bring others up there - you dont want others sniffing around or talking which takes up yr time.


Anything under £30 is far too low.






landroverroy

  • Joined Oct 2010
Re: Renting out space for storage - how much to charge etc ?
« Reply #12 on: May 04, 2017, 11:20:07 am »
Youll be lucky to see an enforcement officer over a shipping container on a yard  I think they have better things to do. I charged £75pw just for the container space.  Just to cover the hassle of people driving back and for and the fact that its still cheap as chips for a space plus they used lots of space around with scaffolding etc.  In the end they defaulted and I took the container as payment. Worked out ok in end. 


Make sure they do not bring others up there - you dont want others sniffing around or talking which takes up yr time.


Anything under £30 is far too low.

I agree an enforcement officer won't be bothered.
But £75pw just for the space to park a container?!! How many acres did they get to use for their scaffolding?
We charge £75pw for half a modern 60' x 30' (ie 30x 30) 15' high building with windows, pedestrian door, roller shutter door and toilet. This is in a secure concreted enclosure with electric gates.
For a 20' x 8' shipping container supplied by us, with power, no ventilation or windows, condensation in winter, parking for one vehicle in front, we charge £15/week. So where someone is supplying the container and only taking up about 8' x 30' or so of space, I wouldn't charge more than £10 pw unless they are taking up a load more space.
Those are average rents here in the middle of Yorkshire.
« Last Edit: May 04, 2017, 11:25:48 am by landroverroy »
Rules are made:
  for the guidance of wise men
  and the obedience of fools.

farmers wife

  • Joined Jul 2009
  • SE Wales
Re: Renting out space for storage - how much to charge etc ?
« Reply #13 on: May 06, 2017, 09:57:49 am »
There was no acreage with this there was a place to park a wagon, a side area for scaffolding units and a container.  What you have to compare it with is renting a unit.  It was a lot cheaper for them to do it this way then entering a rental agreement on a small industrial estate.


I do think £40pm = £ 480pa is not very good business sense - Thats a weekly wage for many.  I understand what you mean and location but £25pw makes more of an earning at £1200pa.


We did it for an opportunity that came our way and couldnt be sniffed at however, for us and bio security and too many people turning up (and some v dodgy) we wont do it again.  Its not just about space its all the other stuff including time and paperwork £10pw is less than half hours time.


At the end of the day someone wants the space and its entirely up to them to haggle. If you feel you want to do a favour for someone whose a friend and you share the passion then I can understand and for the bee keeper he isnt going to have much spare cash.  It all depends whether you are doing a favour or a business and as much as I see people under pricing themselves it never works the other way around.  We stopped doing 'favours' a few years ago - friends take the P yet have the cheek to charge you when you want something done.  We no longer supply anything free and be careful with 'mates rates' as its got to work both ways.


We've had people up here asking about boat/caravan storage but for the security risk (you def attract the thieves), dancing around other peoples kit, the people coming up chatting, doing some maintenance and £5pw it is really not worth any bother at all.


Also be weary of insurance - do they insure their own otherwise a break-in could be on your PI insurance.


landroverroy

  • Joined Oct 2010
Re: Renting out space for storage - how much to charge etc ?
« Reply #14 on: May 07, 2017, 02:45:34 pm »
Yes I do agree with what you say that £10pw isn't a fortune, and about the possibly of dodgy people that might turn up.
But you are never going to make a living out of renting out one container!
We have 5 rented out - cash in hand, so no paperwork. Like I said, ours are £15/week, so nearly £4k pa certainly is worth having.
As for security, we only rent to people we know and only the person renting can get in through the electric gates so it's not a free for all.

The security points you make are well worth considering however, and I certainly wouldn't be happy to give free access to unknown people to wonder round my property either.
Rules are made:
  for the guidance of wise men
  and the obedience of fools.

 

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