The neighbor store app is unique in that you can rent out your property, garage or whatever space you own as a storage unit of sorts, providing you with some passive income. It’s much different than the many side hustles I have talked about in the past that take some work, seeing all you need to worry about is storing something, that’s it.
As you know, people are always looking to store particular items, from cars to RVs, boats, trailers and even household goods. Whatever the reason may be, they may not have the space on site, local spaces may be filled and/or their HOA may not allow what they are looking to store.
If you have the space and you’re willing to rent it out, then the Neighbor Storage app may be something to consider.
What is the Neighbor App?
The Neighbor app is relatively new, having been founded in 2017 by Joseph Woodbury. The company has raised millions of dollars and is currently headquartered in Lehi, Utah. In researching the company, they were founded upon a way to make money, similar to that Uber and Airbnb, only that you don’t have to go “work.” Trying to disrupt the storage industry, similar to that of Uber and taxis, Neighbor wants to allow individuals to make money renting their unwanted space for a few extra dollars a month.
At the moment, the company is only available in a select number of cities, but this number does continue to grow. Refer to the main website to see where they are operating at the moment.
The company is legitimate and you will get paid if you do decide to use the platform, let it be known.
How it Works
The app allows you to share your space with others who need it for whatever reason it may be. This could be an attic, bedroom, closet, driveway or even your backyard. As long as you can store something securely, you can create a post and see if anyone is interested. Picture it almost like an Airbnb for storage space. Most successful spaces, however, include RV storage spaces as well as full, unfurnished garages.
Whenever someone needs a space to rent, a renter can open the app and then break down the categories in what they are looking for. This can include general storage, RVs, boats or cars.
Then, based on the category, a renter will be able to see the type of storage, how much space is available, where you’re located as well as the price.
If a renter likes your space, they book the space and then wait for you, the host, to approve the rental. As an owner, you’re able to pick and choose which renter you want, just like an Airbnb listing. The minute you approve, this is when the monthly storage fees start; however, renters can cancel within four days and get a 100% refund. At the moment, you can only charge by the month.
For a host, it’s as easy as creating an account, listing your space with pictures and then responding to renters whenever they book a space. It’s extremely easy to use and free to do so.
As a host, you won’t keep the entire fee, unfortunately. Renters will pay about 10 to 15% on top of what you’re charging.
Hosts, however, can post a listing for free, but Neighbor will take 4.9% + 30 cents as a rental fee.
Part of this fee, however, includes a renter guarantee, where they are covered with a $25,000 policy against damage or theft. Hosts also receive a $1 million Host Guarantee, which provides you with protection from certain liabilities such as property damages and liability claims which originate from non-storage related activities.
As a host, there are no requirements as to who can create a listing, but there are restrictions.
You can’t store firearms, explosives, pesticides, waste and ammunition, to name a few. Of course, a renter could hide these items, I guess, but it’s important to know what’s being stored as illegal substances could void your insurance policy.
How Much Can I Make?
This is going to greatly depend on a variety of factors, such as where you live, what you’re offering as well as how much space you have.
If you want to see what you can potentially make, I would recommend that you go to the site and then search local storage options in your area to see what others are charging. This will give you a much better idea.
As an estimate, however, be prepared to charge about $20-$50~ a month for a smaller room space/shed to about $80 to $150+ for a car/RV storage lot. This could be much more in some areas with higher demands.
What the Internet is Saying
Unfortunately, the reviews aren’t all that great online.
On SiteJabber, for instance, 15+ reviewers gave the company a poor 1/5 rating. Why was it so bad?
Most people said the support was very poor and it seemed as if there were a lot of scammers on the platform. If you were to call someone, it seems as if it’s very hard to do so.
On TrustPilot, the reviews were just as bad. Renters talked about multiple scammers on the platform as well as hosting payment issues.
A few Reddit threads, however, had nice things to say about the site. Many didn’t make much, but those who did use it had very few complaints as long as you rented to the right people.
- passive income
- $1,000,000 liability policy for hosts
- open to most people as long as you have storage space
- lots of storage options
- easy to use
- paid via direct deposit
- not available everywehre
- some areas may not be strong as others
- liability worries
I think if you have the space, it’s a decent choice to consider, as long as you don’t mind storing other people’s belongings such as an RV, etc. Personally, I think this would work best for people who have a larger lot, more than an acre or so. However, you don’t need this much space as a driveway would suffice.
I did read a lot of poor reviews, but this came from people who rented from a scammer. As long as you weren’t scamming anyone, you should be okay with getting paid and finding a decent renter.
In the end, the fees are very low, and if you’re offering an aggressively priced storage space, you may get some bites, especially if you live near a popular metro suburban area. If you do, it’s a great way to collect some passive income. Plus, as a host, you get that peace of mind with the company’s $1,000,000 liability policy. If you do go this route, however, just make sure you check with your personal homeowners’ policy to ensure you’re covered 100%. Even though the company provides you with insurance, it doesn’t mean you are covered 100%.
That’s going to do it for now.
If you want to comment on your experience or you want to add to what I have written, you’re more than welcome to do so below.
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