How do I calculate rental expenses for a garage?

We rent out half or our 2 car detached garage to a friend for storage purposes and he also uses the area to work 2-3 days a week.  There's a AC window unit he uses or a small heater as the weather dictates, but otherwise the garage is 'unfinished.'  I'm confused about how to calculate rental expenses.  Do I take the square footage of our house and garage and then figure out the percentage he is using?  If he were renting a room in our house, it would be more straight forward, but I guess my holdup is that it's unfinished space.  Does that matter?