I've been thinking about the feasibility of renting shop space on my property to a small business. I currently run my own business, but I'm curious about how successful I might be if I were to bring in a commercial tenant. The workshop is about 950 sq. ft., fully air-conditioned and heated, set up for both metal fabrication and woodworking, complete with 240 V service and a two-axis crane. It's located in a rural area along a main road, about an hour and ten minutes from a major city, with paved access for deliveries. The shop is detached from my home and under five years old. I see industrial spaces in my area renting for about $14-$15 per square foot, so I'm wondering what kind of rates I could realistically get versus mainstream commercial spaces near me.
3 Answers
From my experience, it's important to understand how insurance operates in these situations. If you're renting space, you might have coverage headaches down the line. Also, be prepared for potential tenant disputes over things like noise or operating hours. Having a good rental contract in place is vital.
Honestly, this sounds like a potential legal nightmare. Renting out shop space on a residential property can lead to zoning issues and liability problems, especially if there’s an accident. I recommend doing your homework on local laws and checking in with an attorney if you go forward with this idea.
I agree with the caution! It's essential to clarify your shop's zoning and whether your insurance would cover a commercial use. It’s risky when mixing metalwork and woodworking; sparks from metal can ignite dust from wood. My advice? Chat with your insurance agent before making any commitments.