Colorado Garage Condo Frequently Asked Questions
Answers to common questions about buying, owning, financing, using and selling garage condos in Colorado.
What is fee-simple ownership versus leasehold or land lease?
Fee-simple ownership means you own both the garage condo and the land associated with it. Leasehold or land lease means you own the garage condo but lease the underlying land from another party, typically paying ongoing ground rent.
Is a land lease bad?
In our experience, garage condos with land leases can be less marketable at resale because owners continue paying monthly ground rent even after the unit itself is paid off. Developers may use land leases to reduce the upfront cost of a project, create an additional income-producing asset, or make development feasible in desirable locations where purchasing land is limited or cost-prohibitive. Buyers should carefully consider the long-term ground rent, lease terms, and potential impact on financing and resale value.
Can I install a lift?
Often, yes. Installation depends on ceiling height, slab construction, lift requirements, and HOA/COA approval. Post-tension slabs require special consideration before drilling.
Can I install a mezzanine?
Most of the time, YES! It depends on how the unit is configured, taller or smaller in the back. Most units are sloped so if you are thinking about a mezzanine, keep the unit's shape and clear height in mind. You want a unit that slopes from lowest in the front to highest in the back, not the other way around!
Is there a bathroom in the unit?
It depends on the community, most of the time there will be a clubhouse with bathrooms, fridge, sink and tv/lounge chair area.
Can you live in a garage condo?
Unfortunately, no. Colorado zoning laws do not allow you to live in a garage condo.
What exactly is a garage condo?
A garage condo is an individually owned commercial or storage unit within a larger shared development. Owners typically have their own private unit while sharing common areas and association responsibilities.
What's the difference between a garage condo, car condo, storage condo, and personal warehouse?
These terms often describe similar types of privately owned storage or workspace units. “Car condo” usually emphasizes vehicle storage, while “storage condo” and “personal warehouse” are broader terms that may include RVs, boats, equipment, hobbies, or business storage. These are more marketing terms than anything, they are all the same for the most part.
Do I own the real estate?
It depends. The improvement is the "unit or condo" and you always own that. If it's on a land lease, you don't own the land. If the land isn't leased, they you do own the land and you'll receive a "fee simple" title.
How are garage condos taxed?
Garage condos are typically taxed as commercial real estate, which can result in higher property taxes than residential property. Tax amounts vary by location, assessed value, and local mill levy, so buyers should review the actual tax history when evaluating a property.
What ongoing expenses should I expect?
We call these "carrying costs" and typically include property taxes, HOA dues, insurance, utilities, and routine maintenance.
How do I finance a garage condo?
Garage condos are typically financed with commercial real estate loans, local bank financing, SBA loans for qualifying businesses, or cash. Loan terms and down payment requirements vary by lender and property.
Can I rent my garage condo to somebody else?
Yes, but check the rules for each community to ensure it's ok in that particular community.
Can I operate a business from my garage condo?
Most of the time no, but you CAN use the unit for Business storage though.
Can customers or employees come to the unit?
Most communities, no. The spirit of these communities is storage.
Can I work on vehicles inside my garage condo?
Yes, as a hobby.
Can I weld, paint, or perform mechanical work?
Yes, as a hobby.
Can I stay overnight in my garage condo?
Generally, garage condos are not intended for residential use.
Can I install a car lift?
Most of the time, YES! If the community has Post Tension concrete, then you are not able to.
Can I build a mezzanine?
Yes and the size will depend on how tall the ceiling height is and any HOA restrictions on how wide the mezzanine can be. Most of the time, you cannot brace it against the walls. It has to be free standing.
Can I add plumbing, HVAC, or a floor drain?
Sometimes you can add plumbing if the developer has "roughed" in the plumbing infrastructure already and if not, then you cannot most likely. As far as adding a floor drain, probably not. Most all units have heat and you can add a mini split unit if the HOA allows it or a more simple way to cool, a portable A/C or swamp cooler.
How much clear height do I need?
This depends on your intended use and if you are interested in installing a mezzanine. If the roof slopes, make sure it's shortest in the front and tallest in the back...this is the best setup for a mezezanine.
What garage door dimensions do I need for my RV?
Measure your RV’s total height and width, including rooftop equipment and mirrors. Many larger RVs require a 14-foot-high door which is common, but always confirm your specific vehicle dimensions and allow adequate clearance. Most garage doors are 12 feet wide but can be as narrow as 10 feet wide and as wide as 18 feet. A wider 18 foot garage door is MUCH easier to back into then a more narrow 10 foot wide door.
What documents should I review before buying a garage condo?
Review the title documents, HOA/COA declarations, bylaws, rules and regulations, financials, insurance information and property disclosures.
What should I look for in HOA or COA documents?
Pay close attention to permitted uses, business restrictions, rental rules, modification requirements, monthly dues, special assessments, insurance responsibilities, and rules affecting vehicles, storage, or improvements.
What inspections should I perform before buying?
The appropriate inspections will depend on the specific unit and intended use.
How are garage condos appraised?
Garage condos are generally appraised using comparable sales of similar commercial or storage-condo properties. Location, size, clear height, overhead doors, utilities, improvements, and recent comparable sales can all affect value.
What determines the resale value of a garage condo?
Resale value is influenced by location, size, clear height, overhead door dimensions, utilities, power, improvements, community amenities, HOA costs, and recent comparable sales.
How often is garage condo inventory updated?
We never know when we'll get another oppotunity to help a garage condo seller but you can check back weekly!
What Colorado communities have garage condos?
Take a look at our Garage Condo Map here -->
How does buyer representation work when buying a garage condo?
A buyer’s broker helps you locate properties, evaluate pricing and features, negotiate the purchase, and navigate due diligence through closing. Representation terms and compensation should be clearly established before working together.
Frequently Asked Questions
You've got questions, we've got answers...
Do I own the land beneath my unit or is it leased?
It depends, all communities are different. Sometimes, a high HOA fee can indict a possible land lease. The best way to find out is to reach out to us, we know the difference!
Is a land lease bad?
In our experience, it is a less marketable property if you ever decide to sell or upgrade due to the expensive "carrying cost" associated with the property.
Can I install a lift?
Most of the time, YES! Unless the property has what they call "post tension" or PT concrete. Then it cannot be drilled into.
Can I install a mezzanine?
Most of the time, YES! It depends on how the unit is configured, taller or smaller in the back. Most units are sloped so if you are thinking about a mezzanine, keep the unit's shape and clear height in mind. You want a unit that slopes from lowest in the front to highest in the back, not the other way around!
Is there a bathroom in the unit?
It depends on the community, most of the time there will be a clubhouse with bathrooms, fridge, sink and tv/lounge chair area.
Can you live in a garage condo?
Unfortunately, no. Colorado zoning laws do not allow you to live in a garage condo.
What exactly is a garage condo?
Answer coming soon.
What's the difference between a garage condo, car condo, storage condo, and personal warehouse?
Answer coming soon.
Do I own the real estate?
It depends. The improvement is the "unit or condo" and you always own that. If it's on a land lease, you don't own the land. If the land isn't leased, they you do own the land and you'll receive a "fee simple" title.
What is fee-simple ownership versus leasehold or land lease?
What ongoing expenses should I expect?
We call these "carrying costs" and those are typically Taxes, Insurance and HOA dues.
How do I finance a garage condo?
Answer coming soon.
Can I rent my garage condo to somebody else?
Yes, but check the rules for each community to ensure it's ok in that particular community.
Can I operate a business from my garage condo?
Most of the time no, you CAN use the unit for Business storage though.
Can customers or employees come to the unit?
Most communities, no. The spirit of these communities is storage.
Can I work on vehicles inside my garage condo?
Yes, as a hobby.
Can I weld, paint, or perform mechanical work?
Yes, as a hobby.
Can I stay overnight in my garage condo?
No, the current zoning at the State level does not allow it.
Can I install a car lift?
Most of the time, YES! If the community has Post Tension concrete, then you are not able to.
Can I build a mezzanine?
Yes and the size will depend on how tall the ceiling height is and any HOA restrictions on how wide the mezzanine can be. Most of the time, you cannot brace it against the walls. It has to be free standing.
Can I add plumbing, HVAC, or a floor drain?
Sometimes you can add plumbing if the developer has "roughed" it in already and if not, then you cannot most likely. As far as adding a floor drain, we would say no. Most all units have heat and you can add a mini split unit if the HOA allows it or a more simple way to cool, a portable A/C or swamp cooler.
How much clear height do I need?
This depends on what you are storing and if you are interested in installing a mezzanine.
What garage door dimensions do I need for my RV?
Depends on the size of the RV, most of the time it's at least 48 feet deep.
What documents should I review before buying a garage condo?
Answer coming soon.
What should I look for in HOA or COA documents?
We believe the most important information is what are you allowed do and more importantly, what are you NOT allowed to do.
What inspections should I perform before buying?
Answer coming soon.
How are garage condos appraised?
Just like another other Commercial or Residential real estate property type, typically via the Comparable Approach.
What determines the resale value of a garage condo?
When determining the value of a garage condo, we look at the comparable sales in the community via the Assessor data for each county the unit is located in. The Garage Condo Guy already has this data in our database.
How often is garage condo inventory updated?
We never know when we'll get another oppotunity to help a garage condo seller but you can check back weekly!
What Colorado communities have garage condos?
Take a look at our Garage Condo Map here -->
How does buyer representation work when buying a garage condo?
Answer coming soon.