How do you make money Renting out Your Parking Space

If you have an unused parking space, consider renting it out to start generating a respectable income.

If you reside in the city center, near numerous businesses, commuter connections, or the local football stadium, there’s a good chance that someone is willing to pay you for the privilege of parking on your driveway.

It may sound unusual, but depending on your location, you could earn up to £200 a month by renting out your parking space, or even more if you live in central London.

That’s right – £200 a month for essentially doing nothing. What’s more, since it’s passive income, you can continue earning money even when you’re away for Christmas or on vacation.

Here’s all the information you need to know when considering the rental of your parking space for income.

Can you rent out your parking space?

car park

If you have an available car parking space, there’s a good chance you can earn money from it. However, there are a few considerations to keep in mind:

  1. Can the space be used legally without requiring a permit, such as a space on a driveway or in a garage?
  2. Do you have legal ownership of the property, or do you have permission from your landlord to rent out the space?
  3. Can the space be accessed without the use of a key, code, or fob?

If your answers to all these questions are ‘yes,’ then you can likely rent out your parking space without any issues.

However, even if you’ve answered ‘no’ to any of the questions, don’t give up just yet.

Spaces that necessitate a council parking permit cannot be rented. But spaces that do not require a council permit are typically good to go. You might come across spaces that require a permit near places like churches and schools. While it’s unlikely that a student house would have one, it’s worth checking.

Of course, even if your space is not controlled by the council, you should still seek permission from the space’s owner before renting it out. If you’re a tenant, make sure to obtain approval from your landlord.

Additionally, having some form of access barrier to the space, such as a key or a fob, is not a deal-breaker.

It does mean that you’ll need to be present when the driver arrives and when they come to collect the car before departing. Alternatively, you could use a key safe. Just ensure you contact the driver in advance to provide them with the combination.

How much to charge for a parking space

The amount you can charge for your parking space depends on your location, and it can vary from £50 to £500 per month.

As a student, even the lower end of this range can provide a helpful boost to your finances.

To get a rough estimate of your potential earnings, choose a platform through which to rent your parking space and check how much others are charging on the site.

It’s essential to set a competitive price that people are willing to pay. Consider the value as a guide to determine if it’s worth your time.

Is it worth buying a parking permit if you have a driveway?

If you park your car on your driveway but live on a street that requires parking permits, you can explore the option of purchasing a permit for yourself and renting out your driveway.

Permit parking is commonly implemented in areas where parking spaces are in high demand, such as busy high streets and commuter routes. In such cases, you might be able to charge a higher fee for your driveway space than it costs you, as a resident, to obtain a permit for the street.

How to rent out a parking space

row of parked cars

Here are the key things to know about renting out your car parking space:

1. You need a proper contract

Even though it’s just a driveway, from a legal perspective, you’ll be considered a landlord with tenants and associated responsibilities. It can be an interesting addition to your LinkedIn profile, among other things.

To protect yourself, ensure that you clearly state that you are not responsible for the vehicle or its contents. Nobody wants to be held accountable for someone else’s property.

Some websites may provide assistance with this, or you can find templates online to help you draft the necessary agreements.

2. You must consult your landlord

If you’re renting the property where you have the parking space, it’s essential to verify whether you are allowed to rent out that parking space.

Subletting the parking space may be considered a breach of your tenancy agreement, so it’s advisable to obtain written consent from your landlord or rental agent before proceeding.

3. You can’t rent out a space on the road

It’s important to note that there is a distinction between renting out a garage or a private driveway and allowing someone to park on the public road outside your house, even if you have a spot there.

As mentioned previously, the former is typically legal, while the latter is not.

4. You may have to pay tax on the income

Similar to any other source of income, the money you earn from renting out a parking space may be subject to taxation if it exceeds your annual tax-free limit, known as your personal allowance.

However, you can easily determine whether this applies to you by referring to our tax facts guide, which provides all the necessary information.

Best sites to use to rent out your parking space

Here are the best websites to rent out your parking space:

1. JustPark

JustPark is an excellent choice for individuals seeking to generate income by renting out their car parking space. This platform minimizes the administrative burden by managing all the contracts on your behalf. They also handle the payment process, so you won’t need to invoice the individual parking in your driveway.

You can choose to manually withdraw your earnings or set up automatic payments, which can occur weekly, monthly, or quarterly. While there are no fees for signing up or listing your space, JustPark will deduct a 3% fee from your booking earnings.

Check out JustPark »

2. ParkLet

ParkLet is an excellent choice for those interested in renting out their parking space for longer durations, although they do offer short-term letting options as well. The platform streamlines the process, handles contract creation, and collects rent on your behalf.

However, it’s important to note that ParkLet charges substantial fees. While listing your parking space is free, they impose a 30% commission (+ VAT) for fixed-term bookings shorter than a week. For bookings spanning one to 12 weeks, a 25% commission (+ VAT) applies. Monthly contracts entail a 20% commission (+ VAT) and a £25 (+ VAT) admin fee when they find you a tenant. Consequently, the longer you rent your space, the more cost-effective it becomes.

Check out ParkLet »

3. Park On My Drive

With YourParkingSpace, the name is quite indicative of what the platform offers. While their service is relatively basic, it gets the job done.

One notable advantage is that they charge an annual fee of £20 instead of a commission. Depending on the number of rentals you complete annually and the rates you charge, this could translate into a great deal.

Another plus is that they won’t impose any charges until the first booking inquiry is made, so there’s no initial cost to you.

Regarding the legal aspects, they provide a parking space rental agreement that you can print out and complete with ease.

Check out Park On My Drive »

4. YourParkingSpace

YourParkingSpace is one of the newer entrants to the parking space rental market, but it offers comprehensive services that cover all your needs.

The company provides full management services, which include handling inquiries and negotiations with potential tenants and managing payment collection.

It’s free to join YourParkingSpace, but they charge a commission to the renter. They automatically add a 20% fee on top of your set rental price, so it’s essential to consider this when determining your pricing. The added 20% can make your space less attractive to potential tenants if it becomes too costly for them.

Check out YourParkingSpace »

5. Stashbee

Stashbee offers a unique platform that allows you to rent not only parking spaces but also empty rooms and garages for storage.

To rent out your garage or parking space, you can set hourly and monthly prices. Listing your parking space on Stashbee is free, but they charge a 5% fee on your earnings when you start receiving bookings.

Unlike YourParkingSpace, Stashbee doesn’t handle guest inquiries directly. Potential renters can send you questions, and it’s your responsibility to respond within 24 hours before the request expires. However, you can restart the conversation if you miss the initial response window.

Check out Stashbee »

6. Gumtree

Gumtree is a well-known online marketplace where you can find a wide variety of items, from jobs to plant pots. It’s no surprise that you can also list parking spaces on the platform.

The major advantage of Gumtree is that it’s entirely free. There are no commissions or listing fees, unless you choose to feature your ad for an additional cost.

The downside is that you’ll be responsible for managing contracts and payments on your own, which can be a bit more of a hassle compared to some other platforms.

Check out Gumtree »

7. Advertise offline

You can also consider more traditional methods like placing an advertisement in the local newspaper or at a nearby supermarket for a week. Alternatively, you could try distributing flyers to your neighbors who own cars, targeting those who may have awkward parking situations or no driveway.

If you live in an apartment building with many neighbors, you might consider putting up a notice on the front door or in a communal area (if available). Keep in mind that with these methods, you’ll need to handle all the contract and payment arrangements on your own.

Leave a Comment