Much of my first copywriting work came from real estate investors. I've written websites, blogs, query letters, ebooks and more for everyone from solopreneurs to large content creators and portals specializing in the buying and selling of rental property.
Perhaps because of this, I've always been taken with the potential of real estate investing, while also being acutely aware of its challenges. From flaky tenants to the logistics of managing a property and taking in rent payments, there are a lot of moving parts to consider — which can make the whole process feel intimidating.
At the same time, however, affordability is a bigger issue than ever for buyers and homeowners, and there's no doubt that rental potential can help ameliorate that problem. The ability to rent out a space can make homeownership more affordable and sustainable for the long haul.
All rental spaces aren't the same
Of course, it would be lovely if every home came with a full rental-ready unit with a discreet private entrance and ready-to-lease updates. Sadly, that's just not the case.
What if, however, you could rent other spaces, like a garage, carport, storage shed, or even an extra driveway slab? With Neighbor.com, you can. It's like Airbnb for those parts of your property that never get used enough, yet cost you money in upkeep, homeowners insurance and property taxes.
I recently found out about this platform and its CEO and founder Joseph Woodbury. I was so taken with the concept and with the spread of his idea — founded in 2017, it's currently offering available listings in all 50 states — that I wanted to share it with you.
For first-time homebuyers struggling with affordability, this service might offer the potential to bring in enough extra income to cover unexpected expenses each month or to get them into that slightly larger or better-positioned property.
For experienced investors or second-home owners, this service offers the ability to more fully monetize an existing property without all of the hassles of traditional real estate investing.
For you, there's the opportunity to differentiate your real estate business with real-world solutions that help clients get more out of their property and fully realize its potential.
Disclaimer: I've received no compensation and have no affiliation with Neighbor. I just love this idea and wanted to share it with my readers.
Q&A with Neighbor.com CEO Joseph Woodbury
This interview was edited for length and clarity.
1. What inspired the creation of Neighbor, and how did you identify the need for monetizing underutilized spaces?
My co-founder was inspired to start Neighbor after struggling to find available and affordable storage for his family before an extended stay. This mismatch sparked the idea for Neighbor: a platform to connect people with extra space to those who need it, effectively monetizing underutilized areas such as garages, driveways, sheds, office space and empty parking lots.
2. Can you elaborate on the types of properties or spaces that are most profitable on Neighbor’s platform?
The most profitable spaces on Neighbor are typically those located in dense urban areas where storage and parking are at a premium. These include garages, driveways, and sheds. Commercial properties with unused parking lots or vacant land parcels also yield high returns due to the demand for vehicle storage, including RVs and boats.
3. What success stories or case studies can you share about property owners boosting their income through Neighbor?
One property owner in Florida transformed his vacant lot into RV storage; he earned over $75,000 in a single year.
Another host, a teacher in California, converted her unused barn into vehicle storage, generating over $30,000 annually.
Another host in Seattle turned the unused backyard of his duplex into parking for work vehicles, earning him more than $30,000.
Finally, a major owner of apartment complexes nationwide transformed unused storage areas and extra parking spots into more than $500,000 in annual ancillary storage income and more than $8.5 million in additional property value. These stories highlight the platform's potential to create significant passive income streams.
4. How does Neighbor simplify the process for property owners? Can you walk us through the experience from listing to payment?
Neighbor is a full-service solution for property owners. Our primary goal is to provide the most “passive” income available anywhere. As such, we provide all monthly payment processing, customer support, property marketing, tenant management, and pricing.
In addition, we provide our hosts with a $1 million liability guarantee, and we are the only storage company that offers up to $50,000 in property protection to our renters. Many of our hosts spend less than 30 minutes per month managing their Neighbor earnings.
5. What trends are you seeing in peer-to-peer storage and parking, and how do you think this will shape the future of real estate investing?
With record-high interest rates and record-high delinquency rates, real estate investors are desperate for additional sources of recurring income. The most successful RE investors are embracing the concept of “full-property monetization.”
In the past, an asset manager could exclusively focus on a single asset class. With a highly competitive (and increasingly low margin) real estate market, this is no longer possible. Property must consider the highest and best use of each square foot of space on their property in order to produce outsized returns.
6. What are the most common concerns property owners have when considering listing their spaces, and how does Neighbor address them?
At Neighbor, trust is paramount, and we achieve it by meticulously managing all aspects of the host-renter relationship. Our $1 million Host Liability Guarantee protects hosts, offering peace of mind.
Renter verification ensures safety and reliability. Hosts have control over what is stored and can directly manage their listings with full transparency. For renters, we provide the ability to preview spaces before booking and we are the only storage company nationwide that offers up to $50,000 in property protection for items stored.
Dispute resolution and eviction support are also handled efficiently by our team, maintaining a seamless and secure experience for everyone involved. This comprehensive approach fosters a reliable environment, making Neighbor the most trusted platform for storage and parking solutions.
7. What kind of support does Neighbor offer to help property owners succeed on the platform?
Neighbor offers robust support to ensure property owners can thrive on our platform. Our dedicated customer service team is always ready to assist with any questions or issues.
In addition to answering questions that may arise, Neighbor also provides hosts with proactive tips and recommendations designed to maximize their earnings and reduce vacancy.
The process is designed to be straightforward and low-effort, fitting the "set it and forget it" model. The key to success on Neighbor lies in responsiveness. Hosts who quickly reply to renter inquiries and follow Neighbor’s pricing recommendations typically see the best results. This approach helps hosts maximize their earnings with minimal hassle, making it an attractive option for property owners looking to generate passive income.
8. Looking ahead, what are Neighbor’s plans for expansion or new features that could benefit real estate investors even more?
Neighbor is the only storage company operating in all 50 states. We have active users in almost every city in the USA. Our focus is on expanding options in the cities we operate in.
As we expand options, renters more quickly find storage close to their homes, which attracts more renters. This in turn boosts hosts’ earnings which attracts. It’s a virtuous cycle that is a win-win-win for everyone involved. We also plan to expand our tools to achieve our ultimate goal of creating “no-work” income.
9. How can real estate professionals tap into the potential offered by your platform or help clients to do so?
Owners of residential properties with extra space such as garages, driveways, sheds, etc. can easily sign up on Neighbor.com or by downloading the Neighbor App in the App Store or Google Play store. The process takes as little as 10 minutes to list a space on the platform.
Owners of large property portfolios, particularly large CRE owners, can go to Neighbor.com/business
Joseph Woodbury is the co-founder and CEO of Neighbor, a platform that helps property owners achieve full property monetization, earning more money from underutilized spaces. Woodbury is successfully disrupting the $500 billion self-storage industry, having raised over $65 million from top investors, including Andreessen Horowitz, Airbnb, Uber, StockX, and DoorDash.
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