Anthony O’Brien SHARE ECONOMY
Anemptygarageorbedroomcanbeputtoprofitableuse
There’s cash in clutter
A
ustralia’s sharing or peer-to-peer
economy is projected to grow to
a whopping $55 billion by 2021,
according to a 2017 report by the lending
platform RateSetter. Comparison site
Canstar says this growth represents
a nearly fourfold increase in five years,
with Aussies even earning a quid or two
from other people’s clutter thanks to
self-storage marketplaces such as Spacer.
What is Spacer?
Spacer enables people to create an income
from their surplus space, whether it’sa
bedroom, a cavernous basement, an
underground storage cage or an empty
garage. Spacer then connects people
who have spare capacity with those
who need to store some extra boxes,
a car or other flotsam.
According to Spacer, over
100,000 Aussies earn up to $4200
a year from leasing spare space.
As a rough guide, Spacer
suggests a double garage in a
metropolitan area can rent for
about $700 a month. A car
parking space could earn up to
$350 a month in a metro area and a
small storage cage around $150 a
month. That said, it’s always a good
idea to benchmark your space against
the going rate in your area by usingthe
Spacer Calculator. Just be aware thatthe
calculator may not work for those living
outside capital cities.
Where to start
With the real estate season set to hot up in
spring, Angus Raine, executive chairman
of real estate group Raine & Horne, urges
vendors to “declutter, declutter, declutter”
to ensure their homes can be presented in
the best possible light. “Invariably, Spacer
offers vendors available space in their
neighbourhoods, making the platform
possibly more convenient than the big
storage businesses,” he says. On this basis,
considering Spacer as a means of earning
extra money, if you have some free space,
could be a timely venture.
As a host you must establish what
contents you are willing to store in your
room or garage and how long you are
happy to hold them. It would be best if you
also establish rules with a renter, covering
such things as access times.
At the end of the contract booking period,
the renter must vacate the space entirely and
remove all contents and debris, and leaveinsurance, customer service and the
maintenance of the platform.
The host is responsible for the space and
is expected to hold comprehensive home
and contents insurance. Spacer recommends
hosts inform their insurance provider that
they are using an area in their home to keep
property for a third party. Additionally,
Spacer has arranged an insurance policy
with IAG’s ShareCover to provide renters
with cover for theft or damage to goods or
property for up to $10,000. This fee is
included in its commission.
Asa host, any income you earn is
considered taxable income by the ATO.
Spacer recommends you consult your
accountant to clarify your tax obligations
and any deductions that you may be able
to claim. The GST collected by Spacer
from each transaction relates only to
the service fee and does not cover the
host’s earnings. Hosts are responsible
for managing their tax obligations.Anthony O’Brien is a small business
and personal finance writer with
20-plus years’ experience in
the communication industry.Ata glance
- The global self-storage market was
valued at $53 billion in 2018 and is
expected to reach a value of $70 billion
by2024, according to Mordor Intelli-
gence, a researcher and consultant. - A spare bedroom can earn about
$150-$200 a month and an average
shed can earn about $100-$150. - Spacer claims renters can save up to
50% using its platform compared with
the traditional self-storage options – but
be sure to do your research first to ensure
peer-to-peer storage is cheaper. - Competing self-storage businesses
include CubeSmart, Spacelli and
Kennards.
the garage or attic in good “broom clean”
condition. If a renter abandons the goods in
your garage or bedroom, Spacer will take
responsibility for them.Prices and running costs
Spacer operates on month-to-month
bookings. There are no lock-in contracts
and it costs nothing to sign up to Spacer.
com.au as a host. The platform makes
money by adding an 18% commission fee to
the host’s set price. This fee is included in
the renter’s monthly payments and coversY