Renting out a garage box? A complete guide!

Do you have an empty garage box? This might just be your starting point for a profitable rental experience.

This guide explains how to rent out your garage box in Belgium in a smart and simple way. We provide you with a complete overview from start to finish.

Ready to transform your garage box into extra income?

Create an inventory of your garage

Preparation is half the work. Before you start renting out your garage, it’s important to prepare a thorough inventory. This isn’t just a formality, it’s a step to protect your garage box during the rental period.

Document the current state of the garage thoroughly with photos and descriptions, covering everything from the floor to the roof. Note any existing damages or special conditions.

An inventory provides two advantages for you as the landlord:

• When damage occurs during the rental period, you know exactly what it is.
• New tenants will have a clear understanding of the current state of your garage.

Take the time to prepare this, it offers you peace of mind.

Draft a rental agreement

A well-written agreement or rental contract is like a solid anchor. It ensures that both you and the tenant know where you stand and helps avoid future misunderstandings.

Although these agreements can be made verbally, it’s wise to formalize them with a written contract. This minimizes disputes or ambiguities.

Renting out a garage differs significantly because you don’t need to comply with the Flemish Housing Rental Decree. This means more flexibility and fewer restrictive rules.

Ensure the contract is clear and comprehensive. Include not only the rent and payment terms but also rules regarding usage, maintenance, and termination conditions.

Renting out your garage? Set the right price

Setting the right rental price can feel like an art. It’s about balancing attractiveness for tenants and receiving a fair reward for your space or charging station.

Research the going rental rates in your area for similar garages and locations. Factors such as proximity to the city, size, and extra amenities like security can influence the price.

A competitive yet fair price will not only attract tenants faster but also contribute to a long-term and positive rental relationship.

Renting out a garage box involves VAT

Renting out a garage box, garage, parking space, or other vehicle storage comes with certain tax obligations, including VAT. In Belgium, renting out parking space is not exempt from VAT obligations.

This means you must charge 21% VAT on top of the rental price, even as a private individual, and declare it to the tax authorities.

If you expect substantial income from renting out a garage box, you are required to register for a VAT number. This also involves periodic VAT filings and income tax declarations.

Would you like to become a professional landlord? Start by consulting an accountant and seek legal advice from an expert.

Small businesses get an exception

If you are not subject to VAT due to another economic activity or if your total income is less than €25,000 per year, you may qualify for the VAT exemption for small businesses.

This means you don’t need to charge VAT on the rent or file VAT declarations. This simplifies the rental process and can appeal to tenants looking for a straightforward option. It offers minimal administration and several benefits.

Check the current thresholds and conditions to see if your rental activity falls under this exemption.

Renting out a garage box hassle-free? Choose SparkSpot!

Overwhelmed by the complexities of renting out your garage box? Meet SparkSpot!

We handle temporary rentals of garages and parking spaces for visitors and travelers. This allows you to profit from your garage without the hassle.

With our platform, your garage box is rented out quickly and efficiently, and we provide you with the tools and support needed for a seamless rental experience. Curious about how we can "Spark" your rental journey? Get in touch for more information.

Disclaimer: The information in this guide is general advice and should not be considered legal or tax advice. Laws and regulations may change and vary depending on specific circumstances. For tailored advice and the latest information, consult a qualified accountant or legal advisor.

Frequently asked questions

Where is SparkSpot active?

SparkSpot operates in the entire Belgian coastal region, as well as in Ghent and Bruges. Landlords can soon start renting out their garages on our new platform, where tourists and visitors can reserve parking spaces or charging points.

How much income does a garage box generate?

Income from renting a garage box varies based on factors like location, size, and features such as security or accessibility. In urban areas or near key amenities, earnings tend to be higher. Market research in your region can help you gauge whether renting out your investment will be profitable.

What is the average rental price of a garage box?

In Belgium, garage box rental prices vary. Urban areas with high parking demand generally command higher prices than rural areas. Additional factors include the box’s condition, size, and features. Researching local rental rates will give a better understanding of the market.

How much tax is owed on garage rentals?

For renting out a garage box in Belgium, 21% VAT is typically applicable. However, small businesses may qualify for VAT exemptions if annual income stays below a certain threshold. Additional taxes may apply based on individual circumstances and other income sources. Consulting a tax advisor is recommended for precise details.

When are you subject to VAT?

You are subject to VAT if you regularly and independently conduct economic activities involving the supply of goods or services. In the context of renting a garage box, this means that renting on a regular basis as an economic activity makes you VAT-liable. This requires charging VAT, registering for a VAT number, filing returns, and maintaining records.