Renting Unit for Car Storage

[RGG]

I'm in a position where I want to find somewhere to store my own cars - 2-4 cars but the unit could be larger.

I've been looking at "business units" for lease - £400 pm upwards.

In many of the listings, it says "no motor trades".

Can anyone give me some guidance on how to achieve this solution.

Plus, what extra costs are involved, Rates? Insurance? Energy Suppliers etc?

Any help and advice would be appreciated as I am totally new to this.

The unit would be used solely to store my own cars and do maintenance as well.

[smokey mow]

Talk to the advertising agents and ask.

“no motor trades” could be because of planning restrictions limit use to certain business classes that exclude garage services.

Other times it’s connected to insurance and increased risk of fire or forced entry.

It may simply be that they don’t want a messy oiling business spoiling the look of their shiny businesses park.

[SS427 Camaro]

“ Units “ to store and or work on cars are now VERY expensive. And Very few and far between.

[Charlie Croker mk2]

£400 pcm ? HoHo Think more like £1500 plus business rates Plus services at rip off rates Plus insurance etc . Think out of the box - move to the countryside and buy with a barn or become farmer and build your own storage ?

[swisstoni]

Pricing expectations aside, storing a car has nothing to do with the ‘motor trade’ as far as I can see.

[Unreal]

Charlie Croker mk2 said:

£400 pcm ? HoHo Think more like £1500 plus business rates Plus services at rip off rates Plus insurance etc . Think out of the box - move to the countryside and buy with a barn or become farmer and build your own storage ?

Yep. £400 pcm with space for four cars and maintenance allowed. Not going to happen unless the OP is somewhere very out of the ordinary.

You might get trade use on an industrial estate but you won't get it for £400 pcm and as stated, there'll be add ons, power and water bills and probably VAT.

Outside of an industrial estate, motor trade use will be very hard to find and even if not trade, any maintenance will be interpreted as such by neighbours and lead to all manner of hassle. Strictly storage is different but landlords and neighbours aren't stupid, and the first time you need an angle grinder or leave a car outside on blocks, you'll encounter trouble. There are likely to be strict planning regs affecting anywhere you rent and the neighbours will be all over them.

[chrisr29]

OP, whereabouts in the country are you? I’m West Sussex and rent a 1000sqft unit on a converted farm that’s a bit over £600 pm. There’s plenty of units here being used for motor trade - some professionally and some by hobbyists. Conversely, the shiny new units dotted around the nearby city are about 3 times that for similar square footage.

If you’re in a rural area noise around local farms, they’ve always got a few units tucked away with blokes doing car stuff in.

[RGG]

chrisr29 said:

OP, whereabouts in the country are you? I’m West Sussex and rent a 1000sqft unit on a converted farm that’s a bit over £600 pm. There’s plenty of units here being used for motor trade - some professionally and some by hobbyists. Conversely, the shiny new units dotted around the nearby city are about 3 times that for similar square footage.

If you’re in a rural area noise around local farms, they’ve always got a few units tucked away with blokes doing car stuff in.

The core area is Rutland - East Leicestershire.

Correct me if I'm wrong - I am wanting some expert advice.

This one looks like the potential staring point price wise.

https://www.rightmove.co.uk/properties/156498299#/...

The rental monthly cost is not the main concern - it's the financial extras that I'm new to.
Is there a rough calculation I can do i.e. 50% or 100% for rates - energy - insurance?

Edited by RGG on Wednesday 8th January 09:13

[AlexGSi2000]

May potentially be an option to consider where you live?

A friend of mine was looking to do the same, after considering the cost of the lease / rental costs, he ended up moving to a different house with enough land to build a garage for 3 cars.

Reckons he will have broken even in a couple of years, plus adding to the value of the property.

I myself am in a very fortunate position, I rent a unit with three other friends, its around 800sqm.
We have been renting it since 2013, only possible because the industrial estate is privately owned, units rarely come up there and when they do there is a queue.
As the unit is for storage and not affiliated with any business, we don't pay rates - our electricity usage is metered and invoiced quarterly.
When we were looking at the time, it was nigh-on impossible to rent a unit managed by the larger firms unless we paid silly money.
They are all geared up for businesses really - even harder for the motor trade as they are generally messy/noisy with environmental / fire hazards.

Edited by AlexGSi2000 on Wednesday 8th January 09:38

[RGG]

AlexGSi2000 said:

May potentially be an option to consider where you live?

A friend of mine was looking to do the same, after considering the cost of the lease / rental costs, he ended up moving to a different house with enough land to build a garage for 3 cars.

Reckons he will have broken even in a couple of years, plus adding to the value of the property.

Yes, that's the longer game.

I'm in two properties and want to sell the one that has the current car storage function.

That would mean looking for a shortish - medium term rental place to store the cars.

[chrisr29]

You’d need to check the business rates - local council can provide this. You’ll probably find a unit that size will be subject to small business relief so nothing to pay there. Power will be pay as you use id have thought.


You need at least 800 sqft to get 4 cars in and be able to work on them. Realistically a 1000 sqft to be comfortable.

Anyway, that unit states no motor trade. Problem with motor trade is they spread out and leave dead cars all over the place!

[Davie]

I've had a few units of varying quality and size over the years and yes, anything that isn't the domain of a mate or local friendly farmer and a bit cash in the back pocket monthly... is likely to see you jumping through a few hoops. With regards to motor trade, as has been said already that is a very broad spectrum ad could be referring to a legit business, ramps, customers etc etc however I've also had an instance where a commercial unit was refused as soon as cars were mentioned, even though it was explained it was storage only... driven in, parked, doors closed. It was refused as I suspect a lot of time it'll be give an inch, take a mile and it wouldn't be long before it was creping into something more.

Ultimately you need to speak to the letting agents first and foremost, explain what you want it for and if that would be agree or if the terms of the lease would exclude what you want to do. Business rates are local council, you'll need to approach them and power may be onto with a meter or may be part of the lease agreement, within reason perhaps. Insurance, you'd like to think the building will be covered by the agent / owners however the contents will be on you and hence, cars / cars things are a bit dangerous hence perhaps an insurance condition that refuses.

At £400 per month, plus associated costs... if it's only short term (which may also be a sticky point for the agent) then would it not be worth considering car storage, as in a business running that service? Prices vary but I was quoted £110 a month near Edinburgh, secure, insured etc etc and I'm sure most would do a deal for several cars. The ideal solution is you find a friendly farmer or similar who has some suitable shed space but such facilities are very hard to come by... lots of people looking for storage / garages / maintenance units and so those letting them can afford to be picky over who they opt to let to.

[Charlie Croker mk2]

RGG said:

The core area is Rutland - East Leicestershire.

Correct me if I'm wrong - I am wanting some expert advice.

This one looks like the potential staring point price wise.

https://www.rightmove.co.uk/properties/156498299#/...

The rental monthly cost is not the main concern - it's the financial extras that I'm new to.
Is there a rough calculation I can do i.e. 50% or 100% for rates - energy - insurance?

Edited by RGG on Wednesday 8th January 09:13

LOL should be good fun getting your cars up the steps to you new unit !

[Charlie Croker mk2]

For short to medium time ? this might be better
https://morepark.co.uk/ or https://www.ashtonautomotive.co.uk/our-facilities-...

[RGG]

Charlie Croker mk2 said:

RGG said:

The core area is Rutland - East Leicestershire.

Correct me if I'm wrong - I am wanting some expert advice.

This one looks like the potential staring point price wise.

https://www.rightmove.co.uk/properties/156498299#/...

The rental monthly cost is not the main concern - it's the financial extras that I'm new to.
Is there a rough calculation I can do i.e. 50% or 100% for rates - energy - insurance?

Edited by RGG on Wednesday 8th January 09:13

LOL should be good fun getting your cars up the steps to you new unit !

That's a good point - Probably why they say no motor trades -

[RGG]

Davie said:

I've had a few units of varying quality and size over the years and yes, anything that isn't the domain of a mate or local friendly farmer and a bit cash in the back pocket monthly... is likely to see you jumping through a few hoops. With regards to motor trade, as has been said already that is a very broad spectrum ad could be referring to a legit business, ramps, customers etc etc however I've also had an instance where a commercial unit was refused as soon as cars were mentioned, even though it was explained it was storage only... driven in, parked, doors closed. It was refused as I suspect a lot of time it'll be give an inch, take a mile and it wouldn't be long before it was creping into something more.

Ultimately you need to speak to the letting agents first and foremost, explain what you want it for and if that would be agree or if the terms of the lease would exclude what you want to do. Business rates are local council, you'll need to approach them and power may be onto with a meter or may be part of the lease agreement, within reason perhaps. Insurance, you'd like to think the building will be covered by the agent / owners however the contents will be on you and hence, cars / cars things are a bit dangerous hence perhaps an insurance condition that refuses.

At £400 per month, plus associated costs... if it's only short term (which may also be a sticky point for the agent) then would it not be worth considering car storage, as in a business running that service? Prices vary but I was quoted £110 a month near Edinburgh, secure, insured etc etc and I'm sure most would do a deal for several cars. The ideal solution is you find a friendly farmer or similar who has some suitable shed space but such facilities are very hard to come by... lots of people looking for storage / garages / maintenance units and so those letting them can afford to be picky over who they opt to let to.

Thanks for this comprehensive viewpoint, Davie,

The £400 estimate is just a starting point.

My "short term things" have a habit of developing into longer ones.

I need to make contact with some of the agents to get a clearer picture to see what's possible and what not's possible.

[JQ]

RGG said:

Charlie Croker mk2 said:

RGG said:

The core area is Rutland - East Leicestershire.

Correct me if I'm wrong - I am wanting some expert advice.

This one looks like the potential staring point price wise.

https://www.rightmove.co.uk/properties/156498299#/...

The rental monthly cost is not the main concern - it's the financial extras that I'm new to.
Is there a rough calculation I can do i.e. 50% or 100% for rates - energy - insurance?

Edited by RGG on Wednesday 8th January 09:13

LOL should be good fun getting your cars up the steps to you new unit !

That's a good point - Probably why they say no motor trades -

And why it's so cheap, lots of other businesses need vehicular access for collections and deliveries.

[Unreal]

RGG said:

The core area is Rutland - East Leicestershire.

Correct me if I'm wrong - I am wanting some expert advice.

This one looks like the potential staring point price wise.

https://www.rightmove.co.uk/properties/156498299#/...

The rental monthly cost is not the main concern - it's the financial extras that I'm new to.
Is there a rough calculation I can do i.e. 50% or 100% for rates - energy - insurance?

Edited by RGG on Wednesday 8th January 09:13

I'm a bit confused about you want - the place you've linked would fit two normal sized cars, vastly more expensive than renting two lock ups, albeit with power, water and a very clean environment.

Only the owner can tell you the cost of things like service charges. It is likely to be exempt from business rates but then you're not a business...or if you're saying you are, HMRC may be interested.

I'm not aware of any formulae you can use other than saying you'll find premises tend to be priced on a fairly simple price per square foot basis and I'd say you need well over 100sq ft per car if you want to be able to do anything other than pack them in like sardines. Once you start needing to move cars around and leave an adequate working area, the storage capacity decreases pretty dramatically in line with convenience.

As others have said, the motor trade has a habit of expanding outside of their unit and many sites are soon littered with cars in various stages of condition from complete to shells on bricks. There's are also environmental consideration around fluids and noise. This is why you can be between a rock and a hard place. You can get motor trade friendly places but will pay heavily for them. Get somewhere cheaper like a country barn and the first time you make any noise expect a petition from the neighbours.

[JQ]

AlexGSi2000 said:

As the unit is for storage and not affiliated with any business, we don't pay rates

Business Rates has nothing to do with running a business - if you occupy a commercial property (for any reason) you are liable to pay. There are exemptions, the main one being for small business rate relief for those with a Rateable Value of less than £12,000pa, which is most likely why you're not paying anything. However, rents are rising rapidly on industrial properties so be aware if your RV does rise above £12,000pa, you'll start to become liable.

[RGG]

JQ said:

RGG said:

Charlie Croker mk2 said:

RGG said:

The core area is Rutland - East Leicestershire.

Correct me if I'm wrong - I am wanting some expert advice.

This one looks like the potential staring point price wise.

https://www.rightmove.co.uk/properties/156498299#/...

The rental monthly cost is not the main concern - it's the financial extras that I'm new to.
Is there a rough calculation I can do i.e. 50% or 100% for rates - energy - insurance?

Edited by RGG on Wednesday 8th January 09:13

LOL should be good fun getting your cars up the steps to you new unit !

That's a good point - Probably why they say no motor trades -

And why it's so cheap, lots of other businesses need vehicular access for collections and deliveries.

Thanks for pointing it out - Estate Agent photos.

I'd made an assumption that they were taking the photo from the "Rolling Shutter Door End" of the unit -