What should we consider before renting out part of our garage?

[ragesinggoddess]

We have a three-bay garage and only two cars. Someone in our neighborhood is looking for a place to stash his sports car where he can occasionally do work on it. Not sure if this is a terrible idea for insurance or other reasons or if it would be a good way to make a little cash. I'm planning to ask him how often he will be on the property, how much he wants to pay, and what kind of work he will be doing--what else should I think about/ask?

[Jack]

Think about whether he plans to use loud tools (e.g. air compressor to run air tools) and whether you'd be able to put up with that. Also consider the electricity said tool usage might consume.

[Highbeam]

Insurance. If his car/activity burns down the garage will your insurance rebuild the garage? If your car burns down your garage with his car in there who will pay for his car.

You are leaving residential and entering commercial.

[Khaetra]

Not only the fire risk, but what if he get's seriously hurt or worse?  I wouldn't do it as there's too many factors to consider, especially insurance issues.