Garage Tenancy Advice

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    Garage Tenancy Advice

    Hi all,

    My family have a few garages on a property we own and wanted to offer them as a rental storage space for goods or a car. I wanted to know from peoples experience what things do I need to consider when renting out a garage to an individual i.e. legal requirements, if taking a deposit does it need to be in a deposit protection service, things to include on the tenancy agreement etc.

    Thank you for all help on this, I tried searching the forum and could not find a post about this.

    #2
    It would not be a residential tenancy agreement.
    I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

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      #3
      Get a solicitor to draw up a 1 year licence. (you dont have to renew a licence)

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        #4
        Be careful. A garage let for a car would not be protected under LTA54 but a garage let for storage could be,

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          #5
          There are three areas of statutory control of tenancies: business, agriculture and residential. If you let a garage to house a non-commercial vehicle it does not come under any statutory regime. The only exception is if the letting is associated with the letting of a dwelling. You also need to be careful that if you let it for private purposes that you do not turn a blind eye if it is used for commercial purposes.

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            #6
            Originally posted by Piffy View Post
            Get a solicitor to draw up a 1 year licence. (you dont have to renew a licence)
            Given what I say in my previous post, there is no need to grant a licence if the letting is properly restricted. In any event, any arrangement cannot be a licence if the occupant has actual exclusive possession.

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              #7
              Originally posted by rentreviewspecialist View Post
              Be careful. A garage let for a car would not be protected under LTA54 but a garage let for storage could be,
              Hi, Thanks for your advice, where about specifically does it say in the LTA about this? We have a tenancy drawn up in draft at the moment that states the garage should be used for storage purposes only and we were thinking about allowing tenants to use it to store their personal vehicle.

              Comment


                #8
                Originally posted by Lawcruncher View Post

                Given what I say in my previous post, there is no need to grant a licence if the letting is properly restricted. In any event, any arrangement cannot be a licence if the occupant has actual exclusive possession.
                Hi there, just wanted to clarify what you meant by actual exclusive possession? Do you mean for example if the tenant has their own padlock to access their padlock secured garage and as we do not have access to the padlock we cannot have access to the garage?

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                  #9
                  Not quite that. It is rather that one looks at the terms of the arrangement and all other relevant factors and asks if the intention of the parties, despite what they may have have agreed in writing, was that the occupant should have de facto exclusive occupation of the space taken. To put it it another way, is the agreement a sham? Is saying, for example, that the owner shares occupation only included to try and make the arrangement a licence? In the case of a garage how could the owner and occupant meaningfully share occupation? If the owner has ten garages in a compound and reserves space in all of them he is pretty much waving a flag saying "Sham".

                  Whether the occupant has exclusive possession is not the only question to be asked in an arm's length commercial context, but it is in practice in most cases the only one. Cases where there will be a licence will tend to include those where the space occupied is ill-defined or there is a right for the owner to move the occupant about or the owner retains a significant degree of control.

                  In the case of any arrangement outside of a statutory regime the distinction is not really that important when it comes to ending the arrangement because there is no statutory protection.

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                    #10
                    Right, I think I understand, To make it clear the garage we are letting would be exclusively used by the tenant and we would not be in use of it. I am adding a clause in the agreement to allow the landlord to have the right to inspect the garage with a minimum notice of 1 week given to the tenant. Do you feel this will allow legitimacy of the tenancy and not be a sham?

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                      #11
                      Originally posted by Raj1 View Post
                      I am adding a clause in the agreement to allow the landlord to have the right to inspect the garage with a minimum notice of 1 week given to the tenant. Do you feel this will allow legitimacy of the tenancy and not be a sham?
                      Such a provision is standard and perfectly acceptable.

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                        #12
                        Originally posted by Raj1 View Post

                        Hi, Thanks for your advice, where about specifically does it say in the LTA about this? We have a tenancy drawn up in draft at the moment that states the garage should be used for storage purposes only and we were thinking about allowing tenants to use it to store their personal vehicle.

                        LTA54 doesn't have to say specifically, often something is in case law arising out of an interpretation of the Act's wording.

                        The Act applies only to qualifying tenancies within the meaning of the Act. The property must be occupied by the tenant for the purposes of a business or partly for that purpose. That does not mean that the business itself must be carried on in the property. The tenant may conduct business elsewhere but occupy for the purposes of that business a building in which, for example, stock is stored. It is not a question of whether the building at which one is looking is the main seat of the business, but of whether it is occupied for the purposes of the business. Property which is wholly ancillary to the business may nevertheless be occupied for the purposes of the business. For example, both a car park and a parking space have been held to be occupied for the purposes of a business.

                        A garage for store of a personal vehicle would probably not be a qualifying tenancy under the Act. But for example using the garage also as workshop to repair and/or restore the personal vehicle might be.

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                          #13
                          I agree with post 12.

                          If a garage is used for storage of stock or business equipment or for housing any sort of business vehicle, including a taxi, it will be deemed to be used for business purposes. It will be so even if the activity is in breach of the lease if you turn a blind eye to it. Monitoring is essential.

                          You should provide for the sole use to be to house a non-commercial vehicle.

                          Comment


                            #14
                            You could also add that any vehicle kept in the garage should be fully insured together with Road Tax and an MOT.
                            And that apart from light mechanical repairs NO Welding is to take place either in the garage or the access to it.
                            No Petrol or Thinners are to be kept in the Garage.

                            I would also consider buying some Fire extinguishers and having them serviced every year added to the rent.
                            (In the scenario where a person is tinkering with a car and it Catches Fire you would need the car to be insured)

                            Comment


                              #15
                              Insure the building - make clear to the person using it you hold no insurance on the contents and advise them to seek their own. Most building insurers will insist on no storage of flammable items (petrol in cans etc). Don't think you need to worry about road tax etc - many storers SORN them.
                              Unshackled by the chains of idle vanity, A modest manatee, that's me

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