At first glance, renting a garage may seem like a simple arrangement between two people – one has a spare garage, the other needs a place to park or store things. However, this apparent simplicity often leads to underestimating the legal and practical risks. A garage is not just an empty space, but a property whose use can have clear rules, liability implications and financial consequences.
Renting a garage has become a common part of the real estate market in recent years, and not only in big cities. The reason is simple: the number of cars is growing, traffic is getting thicker and available parking spaces are disappearing. People are therefore looking for a safer alternative to on-street parking, and the garage is an ideal solution. In addition to this, renting a garage is increasingly being used as a storage space. Tenants store not only their cars, but often bicycles, tools, sports equipment or seasonal household items. However, this is where the first risk arises – the garage is used for a different purpose than the landlord originally imagined.
Another reason for the popularity is the investment value of garages. Many people buy garages as a stable source of income because the costs are relatively low and demand is high. Thus, renting a garage has become a common way of “small business”. At the same time, however, the more garages are rented out, the more disputes arise. The most common situations are when the tenant stops paying, damages the door, stores prohibited items or refuses to leave the premises.
From a legal point of view, a garage lease is specific in that it is not a residential lease, but usually a lease of a space used for another purpose. The Civil Code distinguishes between different types of leases and the garage falls into the category of non-residential premises. This has practical implications, for example, on notice periods, the rights of the tenant or the landlord’s ability to terminate the relationship. Thus, a garage lease contract will logically not be the same as a flat lease contract.
Whether the garage is a separate property registered in the Land Registry or whether it is part of a house or apartment complex also plays a crucial role. In some cases, a specific garage unit is leased, in other cases only a designated parking space in a collective garage. Each of these variations may have a different legal context. For example, with parking spaces, it is more difficult to determine exactly what is being leased and disputes arise more frequently.
A specific case is the lease of a garage in a condominium or unit owners’ association, where restrictions and internal rules may apply. The tenant must then follow not only the contract but also the house rules.
It is also important to clarify the purpose of the use. If the garage is rented as a parking space, it must be prevented from being turned into an illegal warehouse or workshop.
Have an attorney prepare or review your garage lease agreement. Online, quickly and with the assurance that you have the correct rent, liability and termination of the lease. Avoid disputes and rent without worry.
Many people still only enter into a garage lease “on good terms”. Often this is an agreement between neighbours, friends or family. However, it is in these situations that the biggest problem is when relationships go wrong. A verbal agreement is legally possible, but practically very difficult to prove. Once a dispute arises, everyone remembers the terms differently. The tenant says he had the garage rented for a year, the landlord says it was only for a few months. The rent was paid in cash without receipts and it is not clear whether a security deposit was paid.
The garage rental agreement is an essential prevention tool. It clearly identifies who is the tenant, who is the landlord, what space is being rented, under what conditions and for how long. It also helps to deal with situations where the tenant stops paying. Without a contract, the landlord may be in a complicated position as they will not have clear notice options or evidence of breach of duty.
Another reason is liability for damages. What if the tenant damages the gate or causes a fire? What if the landlord neglects maintenance and the garage starts leaking? Without a contractual agreement, determining liability is difficult.
If you want to make sure your garage rental is safe, it pays not to underestimate the contract. We can tailor a document to protect your interests and prevent future disputes.
A well-drafted garage lease agreement should be specific, clear and, above all, complete. A few sentences stating that “the landlord is transferring the garage to the tenant for a certain amount” are not enough. Vagueness is the most common cause of disputes. The contract must identify the garage precisely – ideally by giving the address, the unit number or a description if it is a parking garage.
Equally important is a statement of the purpose of the lease. The tenant should make it clear whether the space is for car parking only or whether storage of belongings is also permitted. If the landlord does not want to risk storing combustibles, for example, he should expressly prohibit this. The contract should also stipulate the amount of rent, the due date and the method of payment so that there are no doubts later.
It is also advisable to negotiate a security deposit to protect the landlord in the event of non-payment or damage. It is also very practical to regulate who is responsible for routine maintenance and who pays for repairs. Without this section, it may be that the landlord expects the tenant to fix minor defects, while the tenant assumes that everything is the landlord’s responsibility.
It is also necessary to regulate the termination of the lease – notice periods, the possibility of immediate termination for breach of duty or the obligation to vacate the garage.
If you want to be sure that the contract really protects your rights, it is advisable to have it checked by a professional.
Tip: The price of property insurance is based on a number of factors that reflect the risks associated with a particular property. Not only does the appearance and construction of a particular house come into play, but also its location and a number of other factors. You can find them in our article.
People often underestimate renting a garage precisely because it is not an apartment. However, this does not mean that the risks are less. One of the most common mistakes is using universal model contracts downloaded from the internet. These tend to be generic, do not address specific situations and often contain outdated wording. The landlord then lives under the impression that everything is covered, but in reality the contract offers no real protection.
Another common mistake is the unclear definition of the purpose of use. A tenant rents a garage for parking but gradually starts using it as a warehouse. In extreme cases, the garage becomes a workshop or business space. This can bring not only damage but also problems with neighbours or building regulations.
A big mistake is the lack of a handover protocol. If the landlord does not formally hand over the garage and record its condition, it is hard to prove later that the damage was caused by the tenant. Similarly problematic is the payment of rent in cash without a receipt. Once a dispute arises, it is impossible to prove whether or not the tenant paid.
People also often do not address garage insurance. They assume that everything is automatically covered by their home insurance, which may not be true. In the event of a fire, burglary or vandalism, there is then an unpleasant surprise.
Avoiding mistakes is relatively easy: Have a good garage rental agreement, properly set terms and legal certainty. That’s what we can help you with.
Garage insurance is often overlooked, even though garages are the ones that are quite often at risk. Many people think that the garage is automatically insured along with the flat or house, but the reality is more complicated. It depends on whether the garage is part of a building, a separate unit or just a rented space in a collective garage.
First of all, you need to distinguish between insuring the building itself and insuring the things inside. Building insurance usually covers damage caused by fire, flood or vandalism to the garage structure. However, if the tenant stores items inside, such as bicycles or tools, these items may not automatically be covered. The tenant should check whether they are covered by their home insurance or whether they need additional insurance.
Another issue is liability. For example, if the tenant causes damage by carelessly handling flammables, the insurance company may refuse to pay and seek compensation directly from the tenant. The landlord should therefore expressly prohibit the storage of hazardous substances in the contract.
Garage insurance also plays an important role in the event of a burglary. Garages are a frequent target for thieves because they often contain valuable items and tend to be less secure. Without insurance, the damage can be very high. Good insurance protection is therefore as important as the garage rental agreement itself.
Tip: Why is the same apartment two streets away half a million cheaper? And how come a studio apartment in the centre costs more than a family house on the outskirts? Real estate prices are not a matter of chance. They are influenced by a number of factors – from location to legal status. Find out more in our article.
One of the most common questions when renting a garage is liability for damages. While this may seem like a simple relationship, the reality is often more complicated. The tenant is liable for damages that he or she causes by his or her acts or omissions. For example, if he or she damages the door while parking carelessly, he or she will be liable to pay for the damage. The problem arises if it is not clearly documented in what condition the garage was handed over.
The landlord, on the other hand, is responsible for ensuring that the garage is fit for use. If, for example, the roof leaks into the garage or the electrical wiring is not working, this is a defect that must be addressed by the landlord unless the parties agree otherwise. Disputes often arise in “borderline” situations – for example, when the tenant believes that the repair is the landlord’s responsibility, while the landlord considers it routine maintenance.
Particularly noteworthy are situations where the damage is caused by a third party, such as a thief or vandal. Who is liable? Here we come back to the importance of garage insurance. Without it, it can be difficult to get compensation.
Fire cases can also be very difficult. If a tenant is storing prohibited combustibles and a fire occurs, they may be liable not only for damage to the garage, but also for damage to surrounding properties. Such situations can have hundreds of thousands of dollars in consequences.
Therefore, it is advisable to have the garage rental agreement clearly stipulate who is responsible for what damages, how claims will be handled, and what obligations both parties have.
Renting a garage can be an interesting source of regular income. Many people buy garages as an investment because their purchase price is usually lower than for flats, but the demand for renting is high. However, it is important to realise that renting a garage also has tax implications.
Rental income is generally taxed as rental income under the Income Tax Act. The landlord should disclose it in the tax return and can claim expenses against it, such as flat-rate or actual maintenance costs. If the landlord rents out more than one garage or provides additional services, he may find himself in a situation where he is running a business.
Tip: Do you want to sell your garage instead of renting it? We will advise you on how to get the right garage purchase contract.
People pay attention to the conclusion of the contract, but they are less concerned about what happens when the lease needs to be terminated. The end of the tenancy is the most common source of conflict. The tenant may refuse to vacate the garage, the landlord may want the space back sooner, and the two parties may have different ideas about termination.
The basic difference is whether the garage lease was for a fixed term or an indefinite term. For a fixed term, the lease usually ends at the end of the agreed period. Nevertheless, it is advisable to stipulate in the contract whether the lease can be extended or how the space will be handed back.
In the case of an indefinite term, termination is possible by notice, and the notice period must be respected. Both the landlord and the tenant can negotiate their own terms, but if the contract is silent, the statutory rules apply. It is also practical to provide for immediate termination in the event of breach of duty, for example if the tenant fails to pay for a long time or uses the garage contrary to its purpose.
The handover process is also very important. Based on the disputes we have dealt with in practice, we recommend drawing up a handover report, returning the keys and checking the condition of the garage. If there has been damage, compensation or set-off against the deposit must be addressed.
If the tenant refuses to vacate the premises, the situation can quickly turn into a serious legal problem. In such a case, it is advisable to contact an attorney to help with the termination and any potential court action.
A garage lease may seem like a simple agreement for parking or storage, but it is actually a legal relationship to the property that can bring disputes when there is non-payment, damage, improper use or refusal to vacate the garage. Legally, it is not a residential tenancy, but a tenancy of space used for another purpose, and it also depends on whether the garage is a separate unit, part of the house or a parking space in a collective garage. An oral agreement is possible but difficult to prove in practice, so it is essential to have a good quality garage lease. It must specify the space to be rented, the purpose of use, the rent, the security deposit, the rules for maintenance and repairs, liability for damages and the conditions for terminating the lease and handing over the garage. Common mistakes arise from the use of generic templates, unclear purpose or lack of a handover protocol. Garage insurance is just as important, as it does not always automatically cover the building and the items stored inside, and in the event of burglary, vandalism or fire, the damage can amount to large sums. Liability is usually based on who caused the damage, and without a contract and insurance it can be complicated to deal with. If the lease carries risk, damage occurs or the tenant fails to meet their obligations, it is advisable to contact a solicitor to help set up the contract correctly and resolve any disputes.
Yes, but only under certain conditions. In general, the tenant may not carry out building alterations without the landlord’s consent. Installing shelves or simple furnishings can be considered normal use, as long as there is no structural interference. However, a charger for an electric car already constitutes a technical interference with the wiring, and here it is necessary to have the landlord’s written consent and often an inspection. If the tenant made the modification without consent and damage occurred, the tenant would be liable for the consequences. We therefore recommend that the rules for alterations be set out directly in the garage lease.
Yes, renting a garage is not subject to citizenship or permanent residence. However, the landlord should be cautious from a practical point of view. It is important to verify the identity of the tenant, to have the correct identification details in the contract and ideally to negotiate a higher security deposit. Should a dispute arise, recovery against a person living abroad may be more difficult. However, there is no legal prohibition.
If the garage is encumbered by a mortgage or lien, renting is still possible, but the landlord should take into account that in the event of a forced sale, the new owner may handle the rental relationship differently. An even more serious situation arises in the event of foreclosure. If the garage is part of a foreclosure proceeding, the lease may be legally insecure and the tenant may find themselves in a situation where they have to vacate the premises. It is therefore advisable to check the legal status with the Land Registry before entering into a lease.
The landlord is not entitled to enter the garage at will, as the tenant has the right to undisturbed use of the space during the lease period. The landlord may enter only with the consent of the tenant or in case of emergency, for example in case of an accident (fire, water leak). If the landlord checks the garage regularly without agreement, he could be violating the tenant’s rights. It is therefore advisable to stipulate in the contract whether and under what conditions the landlord can inspect.
In apartment buildings, garage rental is often limited by the HOA statutes or house rules. For example, some communities prohibit renting to people outside the building because it increases the movement of strangers in the building. The landlord should check whether such a restriction exists, otherwise he risks a conflict with the HOA. The tenant must then follow not only the contract but also the rules of the building, for example, the prohibition on storing certain items or the obligation to observe security measures.
No, garage leases do not have the same protection as residential leases. The landlord and the tenant are free to negotiate the rent and can include an inflation clause in the contract. If the contract does not contain any rules on rent increases, changes can only be made by agreement. The tenant therefore does not have as strong protection as in the case of housing.
If the tenant is using the garage for business, there may be legal and practical implications. The landlord should know that business use increases the risk of damage, movement of people, and sometimes violation of the zoning designation. For example, a garage designed for parking may not be suitable as a storage area for large quantities of goods. The business use should be expressly permitted in the lease, otherwise the landlord may terminate the lease for use contrary to its purpose.
If, for example, there is a burglary or fire shortly before the end of the tenancy, it is important to record the condition of the garage at handover and determine whether the tenant, the landlord or the insurer is liable. It is ideal to draw up a handover report, attach photographic documentation and agree who will deal with communication with the insurance company. If it is not clear who is entitled to the insurance claim (for example, if the tenant’s belongings are damaged), a legal assessment may be necessary. In such cases, an attorney is very helpful to avoid disputes over damages.
We provide a complete package of services for both landlords and tenants. We will draft or review all lease/rental contracts, help with extension or termination of lease, and make sure everything takes place smoothly and without legal complications. You’re also welcome to pay after services are provided.
Ondřej is the attorney who came up with the idea of providing legal services online. He's been earning his living through legal services for more than 10 years. He especially likes to help clients who may have given up hope in solving their legal issues at work, for example with real estate transfers or copyright licenses.
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