Sometime in the future, perhaps, teleporters like those seen on Star Trek will be a reality. Every co-op and condo building will have one—not for purposes of travel, but for storage. Until technology allows us to beam our bins and boxes of old clothes, holiday decorations, and unused sporting goods to a depot in, say, South Dakota, however, nobody in New York City will have enough space for storage.

Manhattan has been too cramped for a good century and a half. The Bronx, Queens, and especially Brooklyn are also feeling the crunch of close quarters. Mini-storage companies, aware of the premium of space, now charge more than a hundred bucks a month for the equivalent of an inconveniently located extra closet—many storage facilities have waiting lists of people willing to pay.

What can cooperatives and condominium boards do to combat the clutter problem? One option being used more and more is to convert unused basement space to storage units.

A Common Solution

Already ubiquitous in space-challenged Manhattan, basement storage facilities can now be found in buildings in Brooklyn, Queens, and even parts of the Bronx.

“Basement storage is very common,” says Josh Goldman, president of Bargold Storage Systems in Long Island City, a company that builds and installs a variety of storage units.

Michael Lewis, vice president of A&D Steel Equipment Company, another Long Island City company that builds basement storage units, agrees. “Everyone is looking for additional space,” he says. “If they have space available, buildings will consider it, if they haven’t already done so.”

One of the biggest selling points for storage bins is convenience.

“There are storage companies all over the city that rent rooms in their warehouses,” says Al Robbins, the owner and president of Bronx-based Fordham Equipment Company, which specializes in storage unit construction. “That means tenants have to haul all their goodies out to their car and drive someplace else. Why would they want to do that when they can just take an elevator to the basement?”

Another motive is more ulterior. “Every co-op or condo is looking to provide amenities to keep tenants happy—pools, parking, storage units…the more, the better,” Goldman says. “Amenities attract buyers, which increases the value of the apartments.”

A Question of Space

There are two basic types of basement storage units: wire mesh, and solid steel. The former are the more common, probably because they cost about half as much as the latter—about $500, compared to the solid steel type, which can run up to $1,000 per unit depending on size and other variables.

Of the two types, the solid steel ones are superior, Lewis says. “The steel enclosures have solid roofs, backs, and sides, and a three-inch raised base to protect against any water in the basement,” he says. “There is a built-in locking mechanism, with a key.”

“With the wire mesh,” he continues, “there’s no base, no roof, and the tenant has to provide his own padlock. The steel is also cleaner—not as much dust and particle exposure as in the wire mesh. And the steel ones provide more privacy.”

In some cases, Lewis says, it is the privacy that scares off some boards, who want to be able to see what is being stored in their basements.

“The thing I tell them is, even with wire mesh, you can just put stuff in a box, and they won’t be able to see it.”

There are a number of variations of the two basic locker designs. Some are solid steel with wire mesh on the top of the door, for ventilation. Others are two-tiered, ideal for smaller basements with more limited storage space. And while most are industrial gray, you can now get lockers in different colors.

No two basements are exactly alike, so storage areas are all custom-made, to some degree.

“We build them to suit,” Goldman says. “If it’s a smaller space, we build smaller units. If the space allows, we build larger ones. Large storage units are a great amenity.”

Paying for Itself

How many units should be built in a given building? Should the entire basement be converted, or should the space be partitioned? Ideally, everyone who wants a storage unit has one, while at the same time, none of them are vacant.

To determine residents’ interest or desire for storage space, “The building will do an initial survey,” Lewis says. “It’s very rare that everyone would sign up for storage.”

There is no hard-and-fast rule, he says, but generally, 60 percent of the apartments in a building should have storage units.

Goldman puts the number lower—at least initially. “A building in Queens with 60 apartments should have 10 to 15 to start,” he says.

Even if people don’t want one when initially surveyed, they often change their minds once they see the finished product.

Regardless of the initial interest poll results, “It’s smart to maximize the number of lockers in a basement,” Lewis says.

In new buildings—especially those with apartments in the seven-figure price range—storage bins are generally installed before the owners move in, and are included with the apartment. In this case, the individual owners are responsible for maintaining the storage units.

“It’s always better to do it before they move their stuff in,” Lewis says.

Most storage facilities, however, are owned by the cooperative or condo association, which leases them out to tenants on a monthly basis.

“In a year, maybe a year and a half, it pays for itself,” Robbins says of the start-up costs. “After that, it’s one hundred percent pure profit. It’s a great money-maker for a building.”

Lewis says that some buildings with large storage areas can rake in as much as $50,000 a year—without doing much upkeep. “The lockers are basically maintenance free,” he says.

Other Options

Not every co-op and condo has the money on hand needed for the initial investment, however—or if they do, storage bins might not be a high enough priority. Another option is to contract with a storage service company.

Bargold, for example, will install and manage a professional mini-storage facility in your building’s basement for a percentage of the profits.

“We set up what you see in those storage warehouses—bright rooms, bright aisles, clean areas, locking systems on the door—and give the boards 25 percent,” says Goldman. “We rent directly to the tenants, so the board is removed.”

Some boards opt for the lease agreement because it saves money up-front; others, because they don’t want to take on an easily outsourced responsibility.

The administration of basement storage units may not be as complicated as other jobs on the docket, but it is not as simple as changing the light bulbs and repainting the area every once in awhile.

In buildings where the number of tenants who want storage units is less than the number of units, waiting lists must be maintained. This, Goldman suggests, is best handled in a transparent manner by an objective third party, so that tenants know that no “tinkering” has gone on.

Another advantage of outsourcing is to avoid the sometimes-unpleasant task of collecting rents. “We insulate the board from the hassle of collecting from deadbeats,” he says.

Legal Considerations

Then there are the potential legal issues. “You don’t realize all the little nuances that can come up and bite you,” Goldman says. “The nuances of the laws of storage are not to be taken lightly.”

Without the proper legal paperwork, boards run the risk of exposure to lawsuits by administering their own storage units. For example, it is important that the tenant—and only the tenant—have “care, custody, and control” of the storage unit. This minimizes the risk of litigation.

“If you need to get in for some reason, snip the lock, document it, replace the lock, and let them know immediately.”

All storage agreements should have value limits, where the tenants are legally obligated to not store, say, their collection of Renoirs and Rembrandts in the basement. Otherwise, if those paintings were to one day disappear, “you’re in for it,” Goldman says. “You could face a $50,000 lawsuit for no reason.”

One such lawsuit, no matter how it turns out, can run a consistent revenue stream dry—or worse.

“You make more money running it yourself,” Goldman says, “but you assume more risk, too.”

How much buildings change for rent depends on a variety of factors. As with any real estate, Queens is cheaper than Brooklyn, which is cheaper than Manhattan, but the rule of thumb, according to Goldman, is to charge 50 percent of what the nearest mini-storage outfits charge, at most.

Don’t Do It Yourself

One last piece of advice from the experts: If you’re thinking about installing storage units in your basement, don’t do it yourself—hire a professional.

“If you try to Mickey Mouse the job, you have a situation where one locker is higher than the other, or they’re not balanced,” says Robbins. “They must be installed properly.”

One day, perhaps, you will be able to beam your excess stuff to that giant storage depot in South Dakota. Until that day, storage bins are a pretty good alternative.

Greg Olear is a freelance writer and a frequent contributor to The Cooperator.