Make Extra money by Renting Your Garage or Unused Space at Home: What you need to know

If you have unused space in your home—whether it’s a spare room, garage, basement, or even a parking spot—consider renting it out to make some extra cash. With the rise of the sharing economy and cost of living pressures more people are looking for affordable storage or temporary space, and your unused space at home could be just what they need.

But before you list your space, here are a few important things to keep in mind:

1. Understand the Legal Side of Renting your Garage or Unused Space

Local laws and regulations can vary widely depending on where you live. Some cities require permits or restrict certain types of rentals (like long-term vs. short-term).

It's a good idea to check with your council or a real estate professional to ensure you're in the clear.

2. Know the Tax Implications

Renting out space might bring in money—but it could also bring in tax responsibilities. In many cases, the income you earn must be reported to the ATO, and you may be eligible for deductions related to the space. Consulting with a tax advisor/accountant can help you understand what you owe—and what you can write off.

3. Screen Tenants or Renters Carefully

Whether you’re renting out a garage for storage or a room for short-term stays, it’s important to vet individuals properly. Ask for references, check reviews if using a platform, and consider a basic background check. A solid rental agreement can also help set clear expectations and avoid misunderstandings.

4. Set Clear Rules and Boundaries

Make sure your renters know what's allowed and what's off-limits. For example, if you're renting out a garage, clarify if they can access it anytime or only during certain hours. If it's a room, let them know about noise rules, guest policies, and shared space guidelines.

5. Use a Trusted Platform

There are several apps and websites that help connect space owners with people looking to rent—such as StorageScout, Spacer or Airbnb (for rooms). These platforms often provide built-in vetting tools, secure payment systems, and customer support, making the process easier and safer.

Final Thoughts

Renting out unused space can be a smart way to earn an extra income. If you need help with this, reach out to our StorageScout team on info@storagescout.com.au. We can list the property for you and provide any advice needed.