Rent out your car parking space for money
Got an empty parking space that you don't use? By renting it out, you could start making a decent amount of money...
Do you live in the city centre, near a lot of businesses, commuter links or even the local football ground? Chances are, someone is willing to pay you cash to park in your drive.
It might sound crazy, but depending on where you live, you could get as much as £200 a month for renting out your parking space, or even more if you live in central London.
Yep, you heard right – £200 a month for doing absolutely nothing. And because it's passive income, you can still earn money while you're away for Christmas or on holiday.
Here's our guide to everything you need to know when renting out your parking space for money.
What's in this guide?
Can you rent out your parking space?
If you have an empty car parking space, you'll likely be able to rent it out and earn money from it. But, there are a few things to consider first:
- Can the space legally be used without a permit (such as a space on a driveway or in a garage)?
- Do you legally own the property, or have permission from your landlord to rent out the space?
- Can the space be accessed without the use of a key, code or fob?
If the answer to all of the above is 'yes', then the chances are you can rent out your parking space without an issue.
However, even if you've answered 'no' to a couple of the questions, don't lose hope just yet.
Spaces that require a council parking permit are an absolute no-no for renting, but non-council permit spaces can be rented. You might find these spaces at places like churches and schools, and although it's unlikely that a student house would come with one, we wouldn't like to say for sure that they won't!
Of course, even if your permit space isn't controlled by the council, you will need to check with whoever owns the space before renting it out. So, if you're renting a property as a tenant, make sure you get permission from your landlord first.
Similarly, having some kind of barrier to access the space (like a key or a fob) isn't the end of the world.
All it means is that you'll need to be there when the driver arrives or have a key safe nearby to hand over the key (and to collect it when they leave), or in the case of a code lock, contact them beforehand to let them know the combination.
How much to charge for a parking space
Depending on where you live, the amount you can charge for your parking space will widely vary – you could get anywhere between £50 – £500.
But of course, when you're a student, even the lower end of the scale represents a welcome injection of cash.
To get a rough idea of just how much you could earn, decide which company to rent your parking space through, and see how much other people on the site are charging.
Don't take it as gospel though – waving around an expected fee like an excited chicken doesn't mean people will actually pay it. Think of the value as a guide to see if it's worth your time.
Is it worth buying a parking permit if you have a driveway?
If you live on a road where parking permits are required, but you also have a car and a driveway, see if it's worth buying a permit for yourself and renting out the driveway.
Permit parking is typically found in areas where spaces are in high demand, such as high streets and commuter links. This means that you'll likely be able to charge more for your driveway space than it'll cost you (as a local resident) to buy a permit for the road. Profits!
How to rent out a parking space
Here are the key things to know about renting out your car parking space:
You need a proper contract
Yes we know, it's just a driveway – but, legally, you'll be seen as a landlord with tenants (and responsibilities). If nothing else, it's something extra to add to your LinkedIn...
The main thing is to make sure you clearly state that you're not responsible for the vehicle or its contents. No one wants to fork out for a new Jag that they don't even own.
Some sites will help you out with this, but you can also find templates online.
You must consult your landlord
If you're renting the property itself, you need to make sure you're actually allowed to rent out the parking space.
This is technically subletting (which could be a breach of your tenancy agreement), so get some written consent from your landlord or agent.
You can't rent out a space in the road
There's a massive difference between renting out a private driveway or garage, and letting someone park on the road outside your house – even if you've got a spot on it.
As we mentioned earlier: the first one's legal, the second one isn't.
You may have to pay tax on the income
Just like any other dollar that comes your way, the income from renting out a parking space will be taxable if it takes you over your yearly tax-free limit (a.k.a. your personal allowance).
But don't worry – it isn't hard to work out if this applies to you, and paying it is pretty easy too. You can find all the info you need in our tax facts guide.
Best sites to use to rent out your parking space
To find drivers to rent your parking space, here are the best websites to try:
JustPark is one of the best options for anyone looking to earn some money by renting out a car parking space with minimum hassle.
They'll sort out all the contracts for you, and their payment scheme means you don't even need to bill the 'tenant' who's parking in your drive.
They collect payments, and you can either manually withdraw your earnings or set it to pay you automatically, either weekly, monthly or quarterly.
There are no fees for signing up or listing a space, but JustPark will take 3% from your booking. For any booking over two months, they'll take 20% of the first month's payment, and 3% for each month thereafter.
Another solid contender, ParkLet, is perfect for people who are looking to rent out their car parking space for a longer period of time. That said, they offer a short-term letting service too.
They're super keen to make the process as smooth as possible and will draw up necessary contracts and collect monthly rent on your behalf.
The only downside is they have some pretty hefty fees. You'll pay 20% commission (+ VAT), as well as a £25 (+ VAT) admin fee when they find you a tenant (although listing your space is at least free). For that reason, the longer you rent it out for, the better.
Park On My Drive
The name says it all with this one, and although they offer a pretty basic service, it does the job amply.
The big pro here is that you get charged a yearly fee of £20 instead of commission, so depending on the number of rentals you do per year and the price you charge for them, this could turn out to be an excellent deal.
They also won't charge you anything until the first booking enquiry is made, so there's less risk of being out of pocket.
On the legal side of things, it has a parking space rental agreement that you simply need to print out and fill in. Easy as pie.
YourParkingSpace is one of the newer players in this market, but it still does everything you'd want it to.
The company offers a full management service, meaning they handle all questions and negotiations with the tenant, as well as organising and collecting the payments.
There's no fee for joining YourParkingSpace, but like JustPark they charge the buyer an additional percentage of the cost as commission. They'll automatically add 20% on top of whatever your set rental price is, but unlike JustPark, the final cost will appear in the listings.
Again, though, this means you'll have to be careful about how much you're charging for your space. If they're whacking another 20% on top, it could quickly become too expensive for anyone to take an interest!
Chances are you've probably already heard of Gumtree: the magical, mystical place where you can find everything from jobs to plant pots. Perhaps unsurprisingly, you can also list parking spaces too.
The massive bonus with Gumtree is that it's 100% free. There's no commission to pay, and no pesky listing fees (unless you pay to feature your ad, of course).
The obvious downside to this, however, is that you'll have to sort out contracts and payments by yourself, which can be a bit of a hassle.
You can have just as much success by placing an advert in the local paper or supermarket for a week, or even flyering neighbours with cars (target ones parked slightly awkwardly and without a driveway, of course).
If you live in a block of flats with a lot of neighbours, you could even put a notice on the front door or in the communal area (if there is one).
Once again, however, you will have to sort out all your own contracts and payments.
Check out our top tips for saving money on driving for more ways to cut the cost of owning a car!