Neighbor
Strengths
- Can rent unused indoor and outdoor space
- Month-to-month contracts
- Payout protection and host liability coverage
- Ability to screen potential renters
Weaknesses
- High fees vs. traditional storage
- Host insurance doesn't cover all theft and damage claims
- Must wait for a rent request to earn income
Most towns have several self-storage facilities, but there can be a long waiting list to get a unit.
The Neighbor Storage app lets homeowners lease their storage space to renters and make some extra cash. In addition, renters can find storage that might be cheaper and closer than a local self-storage unit.
In this Neighbor Storage review, I’ll show you how you can make money renting out your space.
Table of Contents
What Is Neighbor?
The “Airbnb of self-storage” might be the best way to describe Neighbor.
The service operates across the United States and lets you make money by renting your extra storage areas to community members. Believe it or not, there are plenty of people willing to pay you to store their items and vehicles in your garage.
Some of the items you can offer to store include:
- Personal items
- Business inventory
- Vehicles
- RVs
- Boats
- Trailers
It’s free to list your property. You rent by the month and receive payment by direct deposit.
For additional security, you get to screen potential renters ahead of time, and up to $1 million in liability insurance is available.
Neighbors platform offers storage rates up to 50% cheaper than traditional self-storage, which is one of the reasons it’s become so popular.
Who Should Use Neighbor?
Anyone who doesn’t have plans for their unused space should consider Neighbor as a way to make extra money. The income is fairly passive, which is great if you don’t have the time for a traditional side job.
If you rent it for 14 days or fewer, it may even be tax free because of the Augusta Rule!
Homeowners, business owners, and renters can list their indoor or outdoor areas as long as they have their landlord’s permission.
How Neighbor Storage Works
For the Neighbor app to work, it has to be popular with hosts and renters alike. Here is a closer look at how the platform works with each group.
Neighbor for Hosts
Listing your storage space and collecting payments is relatively easy. Here are the steps you need to take to get started:
1. Establish a Qualified Space
Almost any indoor or outdoor space you own can qualify for Neighbor storage if you can keep the renter’s items secure. Here are the following types of places you can rent out:
- Attic
- Indoor rooms
- Garage
- Driveway
- Carport
- Attic
- Storage shed
- Warehouse
The minimum dimensions must be a 5×5-foot space.
You can also take pictures of your storage area and describe what security measures are in place. For instance, if you’re renting an indoor room or garage, is the area locked up from the rest of the house so your family members cannot get into it?
As you list your property, you will see the possible rental rates you can charge. The platform lets you set your own monthly rate.
2. Book a Free Photo Appointment
If you’d like, Neighbor will send a professional photographer to take pictures of your property. You can schedule a free photoshoot and these images can help you find more renters.
3. Screen Potential Renters
Storing a stranger’s belongings or unused vehicles is a great way to make money fast. First, however, you want to make sure you trust the renter and verify they are only bringing items that won’t attract pests or potentially damage your property.
The Neighbor app lets you screen rental requests before you agree to the storage terms. If you happen to overlook a rental request, it automatically declines after 48 hours. So, you don’t have to worry about a stranger showing up at your front door with a U-Haul in tow.
It’s important to ensure the planned storage period isn’t longer than you’re comfortable with if you need the space relatively soon. Each rental contract is month-to-month and can be shorter or longer than the original agreement.
You must provide at least 30 days’ notice to terminate the rental agreement or face a potential $60 eviction fee as a host.
4. Receive Payments
Once you’ve taken on a renter, you’ll receive payments at the end of each rental month by linking a bank account or debit card. Hosts receive payment for the entire month even when renters move out early.
Host Insurance
You receive up to $1 million in host liability insurance to cover accidental damage to the renter’s possessions. Hosts are liable for damages they cause due to negligence or accidents.
Neighbor for Renters
Understanding how the process works for renters can help you set your rates and advertise your space more effectively.
Vehicle and Self Storage
Hosts without suitable indoor storage space may only decide to offer vehicle storage. Likewise, a host that lives in a relatively strict homeowner’s association may only offer indoor storage and not store vehicles outside.
Some of the prohibited items include:
- Perishable food items
- Firearms and ammunition
- Pesticides and toxins
- Explosives
- Drugs and controlled substances
- Stolen goods
As a renter, you must disclose what items you wish to store at the property.
Month-to-Month Contracts
Each contract is month-to-month, and the future rates won’t increase when you keep the same host. Some hosts may offer a one-time discount for the first month.
You can message the host to discuss your estimated storage time and the items you want to store. If the host needs the space before you’re ready to move out, the host must provide you with at least a 30-day notice.
Also, renters pay for the entire month even if they remove their items earlier.
Pay for Storage Space
Neighbor collects payment on the first day of each rental month by credit card or debit card. The platform will remit payment to the host.
In addition to the monthly rental charge for the host, renters also pay a service fee that covers the platform costs. This fee also provides up to $250,000 in rental protection to protect your belongings if damage occurs.
Access to Items
The platform requires hosts to provide reasonable access hours to their renters. Depending on the property, the renter may need to wait until the evening hours when the host returns from work.
Other hosts are more accommodative and may offer up to 24-hour access.
Verified Hosts
All hosts must verify their identity before they can list their property. This verification process can minimize the scams that may occur when finding storage space on social media. Previous renters can also leave ratings and reviews to help future renters find the best hosts.
Neighbor Storage Fees
Hosts
Listing your storage space is free, but there is a payment processing fee of 4.9% plus $0.30.
This fee covers the $1 million host liability insurance and provides payout protection benefits if the renter skips their monthly payment.
You will also need to provide at least 30 days’ notice of terminating the rental period or pay a $60 eviction fee.
Renters
Renters will pay the monthly rental fee and a service fee. These fees appear in the rental listing and remain the same for the entire rental period.
Canceling a rental agreement within three days of the billing date only results in an 80% refund.
Neighbor Storage Pros and Cons
Here is a look at the advantages and disadvantages of being a Neighbor host.
Pros
- Can rent unused indoor and outdoor space
- Month-to-month contracts
- Payout protection and host liability coverage
- Ability to screen potential renters
Cons
- High fees vs. traditional storage
- Host insurance doesn’t cover all theft and damage claims
- Must wait for a rent request to earn income
FAQs
Neighbor has several safeguards to protect hosts and renters, including identity verification, insurance, and payout protection. The company has a 3.2 out of 5 Trustpilot score.
Hosts can still receive payments if the renter fails to pay. Renters must receive a notice at least 30 days before the next payment due date.
However, the renter’s items and vehicles are subject to theft and damage. These risks may be higher in specific neighborhoods instead of a secured traditional storage facility with 24/7 surveillance. But, the storage fees can be significantly less and can be worth it when using hosts with high ratings.
The potential income depends on the geographic location, storage space size, and local demand for storage. In general, you can expect to charge up to 50% less than traditional storage.
For example, you might earn $60 per month ($720 per year) when renting a 20×20 outdoor space for vehicles or $175 per month ($2,100 per year) for a 10 x 7 garage in a low cost of living area like Knoxville, TN.
In a pricier megapolis like Los Angeles, the rates are higher:
– $75 per month ($900 per year) for an 8 x 5 closet
– $150 per month ($1,800 per year) for a 20 x 10 parking lot
– $250 per month ($3,000 per year) for a 10 x 10 garage
– $300 per month ($3,600 per year) for a 15 x 15 bedroom
You won’t get rich if you only have one or two spaces to rent, and you must maintain a renter to earn income. However, this can be an easy way to make an extra $500 without consuming your free time.
Customer support is available by phone, text, or chat Mondays-Fridays from 9:00 a.m. to 6:00 p.m. Mountain Standard Time. You can also send an email.
Yes, a mobile app is available for Android and iOS devices.
The Bottom Line
While you won’t make as much as you would with a traditional storage facility, Neighbor is an easy way to make extra money with your unused indoor and outdoor space.
The month-to-month contracts make it easy to reclaim your area when you need to store something. You’re never locked in that long. Neighbor is a home-based side hustle that’s well worth the time and effort, as long as you are comfortable with another person keeping their belongings at your house or business.
