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Have you heard about Neighbor Storage?
It’s an innovative start-up dubbed as the Airbnb of storage spaces.
In this post, let’s get to know more about Neighbor Storage, what are its benefits, and why you should join it.
What is Neighbor Storage?
Are you moving into a smaller home?
If you’re relocating from a big space into a smaller one, chances are you’ll be looking for another place to store your extra stuff.
What this means is that you could be spending up to hundreds of dollars every month in rental payments on a storage unit located just outside of town.
The amount could be potentially more if it’s a short-term lease; most storage facilities aren’t keen on a tenancy of a month or two, preferring to lock into longer periods in lease contracts.
So what’s the solution?
This is where Neighbor comes in.
Neighbor is the Airbnb of storage.
What’s the best way to describe Neighbor Storage?
Think of it as the Airbnb of storage.
Just like how Airbnb connects homeowners with travelers, Neighbor links people who have unused spaces with potential renters.
You can create a free Neighbor account when you sign up here.
Hosts will share details and images of their available storage space on Neighbor’s website. This is where potential renters can view them and select which spaces are best for their storage requirements.
What’s more, unlike a conventional lease contract involving storage spaces, Neighbor Storage does not have restrictions as to the length of time of the rent.
The space availability ranges from the size of a small closet to a huge garage or an unfinished basement.
This peer to peer storage solution offers a way for American’s to easily store their extra stuff.
No wonder, Neighbor enjoys a warm reception from investors and the public.
Even at its infancy, this start-up announced it raised $2.5 million in its funding as it tries to provide a cheaper alternative to self-storage.
Why is Neighbor Storage a better choice than a conventional Self Storage lease?
According to Neighbor’s CEO Joseph Woodbury, the company offers more options for both the host and the renter.
Neighbor requires minimal maintenance on the spaces to be rented out.
Comparing it to Airbnb, when you do nightly rentals you need to clean up the space being used by the short-term renters. You also have high turn over, and more property damage and use. You do that with every renter that comes in to stay.
That’s a lot of work, don’t you think so?
But with Neighbor, you can just sit back and essentially do nothing while you get the monthly cashflow in exchange for the storage space you provide.
As far as the renters are concerned, Neighbor lets them rent out space for a month or two without incurring hefty costs. This is a wonderful alternative to a conventional lease, which usually requires a locked-in period of one year.
If they are looking for longer-term storage options Neighbor self storage hosts often provide space at a smaller cost than at a big name self storage company.
Neighbor Self Storage Features
Also, Neighbor has a built-in messaging tool that lets the host and renter communicate with each other during the lease period.
Built-In Payment Processor
As for payment, it is coursed through Neighbor’s website. The monthly rates can range from $18 to $300.
Neighbor will suggest the rent for the space, taking into account the area’s size, safety, and available amenities (security cameras, smoke detectors, door locks, etc.).
Neighbor Storage Protects hosts and renters.
Renters are assured of indemnity for any loss or damage sustained on their items during the period of the lease.
Hosts will pay for all damages caused on the renters’ property. The only exception to this rule is when the cause of the damage is beyond the host’s control like floods or hurricanes.
On the other hand, renters need to disclose what items are to be stored. That way, hosts can decline to accept the lease on account of the nature of the items.
Neighbor Storage is out to revolutionize the self-storage industry.
At just barely two years old, Neighbor sets out to radically change the self-storage industry. And it’s a huge industry that it seeks to stir up.
Would you believe, in the U.S., there are more storage facilities than there are fast-food and retail outlets?
According to Mr. Woodbury, these storage spaces outnumber all the Starbucks, Dunkin’ Donuts, McDonald’s, Domino’s, Walmarts, Costcos, and Home Depots combined.
Now, that’s a massive industry!
So where does Neighbor fit in all of these?
Neighbor Storage pursues a simple and straightforward premise.
Through its website, Neighbor will connect hosts with people who are looking to rent space for their stuff.
Hosts can set their own rates. However, Neighbor offers guidelines and suggested rent amounts.
Neighbor offers a wider reach, with its listings now available in 48 states and the District of Columbia. The website is also looking to expand its operations overseas.
“It’s not just garages and basements and driveways.”
When you hear the term “storage space,” what usually comes to mind first?
You probably picture out empty garages and unused basements.
With Neighbor Storage, there are more than these un-utilized spaces.
“It’s not just garages and basements and driveways,” Mr. Woodbury clarified. “We’ll have people put up barns, their old barn, and they’ll store classic cars in their barn.”
And it’s not just huge spaces that are up for lease in Neighbor.
“We have people put up even small spaces in university towns,” Mr. Woodbury added. “People put up a closet, and students will come store two or three boxes in their closet.”
For the renters, Neighbor Storage offers a cheaper alternative.
With big-name companies, the rent is usually high, charging at least $50 a month for a tiny storage space that measures five feet by five feet.
Now, if you compare that with Neighbor’s storage spaces, you pay half that amount for a bigger area.
Neighbor Storage Inc. is a promising endeavor.
While it didn’t disclose its annual revenue, Neighbor raised around $2.5 million in 2018 and is currently rounding up another funding.
Should this business take off, Neighbor can really take a huge bite out of the $38 billion self-storage industry.
Would you like to know more about Neighbor Self Storage?
Neighbor Storage Inc. is a wonderful peer to peer storage platform that connects hosts and renters.
Are you interested in renting out an unused space?
Or are you looking to rent storage space?
Read through the frequently asked questions about Neighbor and then sign up here.
FAQs from Neighbor hosts
how do you make money as a Neighbor Storage host?
Neighbor lets you earn extra income by leasing your unused storage space. It’s just like Airbnb, but only this time, it’s for self storage.
You can advertise for free any available storage space that you have on the site. And while Neighbor may have suggested rates on the rent, you can set your own.
Once your storage space is leased, Neighbor will deposit the rent payment into your bank account.
What are hosts liable for?
As a general rule, hosts are only liable for damages that they caused on the renter’s items.
So if the stored items were destroyed by the flood, hurricane, or any cause that’s beyond your control as a Neighbor host, then you won’t be liable for the damage.
What if your storage space was damaged by the renter?
Neighbor will cover the damage under its $2 Million Host Guarantee.
This is on top of any property insurance that you may have, covering your storage facility.
Neighbor will make sure you will get indemnified for any damage to your property as a result of the renter’s fault or negligence.
Does Neighbor offers a safe platform to find renters?
Yes, it does.
Neighbor provides a platform where hosts like you can view the profile of potential renters.
Before approving a request or reservation for storage space, you, as a host, can look at the profile of every potential renter.
You can read what they need to store in your facility. You can also ask them the particulars of these items; i.e., whether or not they are flammable or could pose a risk to your health, safety, or security.
Neighbor Storage features an internal messaging platform that connects hosts and renters. This allows hosts to get to know more about the potential renters and what they intend to store.
As a host, you can choose which requests or reservations to approve.
You might think there’s no way for you to decline any request or reservation for storage space. Well, that’s not how Neighbor Storage woks.
As a host, you can view all pending requests or reservations. You can choose which ones to approve and accept these renters’ items for storage.
Prior to approving their requests or reservations, you may ask for more details from potential renters.
You can inquire about the details of their lease; i.e., how long do they intend to use your storage space, what items would they want to store, etc.
As a host, you may also ask about each potential renter’s personal circumstances that are relevant to the lease.
To facilitate fast processing of requests or reservations for storage space leasing, hosts have 48 hours to approve or decline them.
Failure to act on these requests within this period will result in an automatic decline.
Do you need to pay Neighbor to rent out your storage space?
Listing your storage space for rent on Neighbor is completely free.
However, Neighbor takes a small processing fee, which amounts to 4.9 percent of the gross reservation plus $0.30 for every payout you get.
So how does Neighbor make money out of this?
Neighbor will charge renters a service fee as they facilitate in providing them safe and secure storage space for their stuff.
Because of this service fee, Neighbor can provide the $2 million insurance coverage, a reliable platform, and responsive customer care.
How much should hosts charge for their storage space?
Neighbor will provide a suggested price range for every listing.
In determining this suggested rent amount, Neighbor will consider the size of the storage space, its location, the existence of amenities or provisions, and other features.
Renters can enjoy the affordable storage solutions as Neighbor seeks to provide these spaces at roughly half the cost of conventional self-storage.
However, you are free to price your rent as you please. Neighbor’s suggested amounts are only guidelines to give you an idea of how much to charge.
If you want to secure a rental reservation quickly, you may want to follow Neighbor’s price suggestions.
How will hosts get paid?
Once the listing is approved and reserved, Neighbor will deposit your payout automatically into your designated bank account.
Payouts are made at the end of each rental month.
What if you need to use the storage space during the duration of the rent?
Ideally, you, as a host, will have to work this matter out with your renter.
In most cases, you will have to give the renter a notice to vacate four weeks in advance. Failure to comply with this requirement may result in the payment of an eviction fee of $60 (unless the renter also violated the terms of the lease).
FAQs from Neighbor Renters
As a renter, are you worried if your things will be safe during storage?
Yes, your items will be safe during storage.
Neighbor has made provisions to ensure that hosts and renters have a safe and secure environment within which they interact and transact.
In addition, Neighbor requires users to provide their personal bio, profile photo, and contact information.
What are the locations of Neighbor’s storage spaces?
Neighbor is not confined to one city or state.
There are hosts and renters from 48 states and the District of Columbia are joining the site?
Neighbor even seeks to expand its operations overseas.
How much does it cost to store items using the Neighbor Storage app?
On average, Neighbor storage rates are half the price of conventional self-storage. Although Neighbor allows its hosts to list their own prices.
Listings start at $10.
In addition to the listing price, Neighbor charges a service fee to hosts.
How to pay for your storage?
As a renter, you will need to connect your credit card with the Neighbor Storage app.
Once your request or reservation for self-storage is approved by the host, Neighbor will charge the corresponding amount to your credit card. This will cover the first month of storage.
Charges on your credit card will be made until you cancel your reservation.
Can you access your items during storage?
Hosts may set the level of access. You can learn about this on the listing.
The levels of access include 24/7 access, only during business hours, and only upon request.
You can agree with the host regarding the frequency or level of access during the storage.
Are there items prohibited from storage?
As a renter, you will ensure that your items won’t damage or cause harm to the host or his storage facility.
Accordingly, there are items that may be prohibited from being stored. These include toxins, drugs, explosives, firearms, flammable materials, and perishable goods.
When you send a request, you will need to disclose what items you intend to store in the host’s storage space.
Can you live inside the host’s storage space?
No, you can’t.
Neighbor’s spaces are only intended for storage and not for any other purpose.
Can you cancel your reservation?
Yes, you may.
Renters are allowed to cancel by providing notice at least three days before your reservation starts.
With a timely cancellation of your reservation, you may also receive a full refund.
However, if you cancel within three days of the reservation, you can only receive 80 percent of the listing cost.
There will be no refund if the cancellation was made after the rental period starts.
Conclusion: Neighborhood Storage Review
Neighbor Storage is a game-changer.
Brands like Uber, Lyft, and Airbnb have revolutionized their industries.
This is how I see Neighbor Storage. It’s going to change the way we do self-storage.
Neighbor offers more affordable solutions for people seeking storage space so set up your free account here.
On the other hand, if you have unused spaces, you can rent them out and collect the extra cashflow each month.