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 use a Garage Condo as a workshop?
Often, yes. Workshop use depends on local zoning, HOA/COA rules, and the type of work being performed. Activities involving noise, fumes, hazardous materials, or customer traffic may have additional restrictions.
What should I measure before buying a unit for my RV, boat, or trailer?
Measure the vehicle’s total height, width, length, mirrors, rooftop equipment, and turning clearance. Also confirm the overhead door size, interior dimensions, and clear height.
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.
How long does buying a garage condo typically take?
Timing varies by financing, due diligence, title work, and the property itself. Cash purchases may close faster than financed transactions usually around 10-14 days and when financing a unit, it can take 30-60 depending on the lender you use.
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?
Business use depends on local zoning and the community's HOA/COA rules. Many garage condos allow business storage even when regular customer-facing operations are restricted.
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?
It depends on the community, zoning, fire-code requirements, and HOA/COA rules. Certain activities may be restricted even when performed as a hobby.
Can I stay overnight in my garage condo?
Garage condos are generally not intended or approved for residential use. Always verify local zoning and HOA/COA rules before assuming overnight stays are permitted.
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.