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 the local football ground? Chances are, someone is willing to pay you cash to park on 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. It could be 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 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 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 any of the questions, don't lose hope just yet.
Spaces that require a council parking permit can't be rented. But, non-council permit spaces are good to go. You might find spaces that need a permit near places like churches and schools. Although it's unlikely that a student house would come with one, you'll never know until you check.
Of course, even if your space isn't controlled by the council, you will need to check with whoever owns the space before renting it out. 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.
It does mean that you'll need to be there when the driver arrives (and when they come to collect the car before leaving). Or, you could use a key safe. Just make sure to contact the driver 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 vary. You could get anywhere between £50 – £500 per month.
When you're a student, even the lower end of the scale represents a welcome injection of cash.
To get a rough idea of 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.
You have to make sure this is a price people will pay. 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?
Do you park your car on your driveway, but live on a road that requires parking permits? You can see if it's worth buying a permit for yourself and renting out your driveway.
Permit parking is typically found in areas where spaces are in high demand, such as high streets and commuter links. You may be able to charge more for your driveway space than it'll cost you (as a resident) to buy a permit for the road.
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.
Make sure you clearly state that you're not responsible for the vehicle or its contents. No one wants to pay for a new Jag that they don't even own.
Some sites will help you with this, but you can also find templates online.
You must consult your landlord
If you're renting the property, you need to make sure you're allowed to rent out the parking space.
This is technically subletting. It could be a breach of your tenancy agreement, so it's best to get written consent from your landlord or agent.
You can't rent out a space on the road
There's a difference between renting out a garage or private driveway 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, but the second one isn't.
You may have to pay tax on the income
Just like any other income, the money you make 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's easy to work out if this applies to you. You can find all the info you need in our tax facts guide.
Best sites to use to rent out your parking space
Here are the best websites to rent out your parking space:
JustPark is one of the best options for anyone looking to earn some money by renting out a car parking space.
This site requires minimum work as they'll sort out all the contracts for you. 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. This can be weekly, monthly or quarterly.
There are no fees for signing up or listing a space, but JustPark will take 3% of your booking.
ParkLet is perfect for people who are looking to rent out their car parking space for a longer time. That said, they offer a short-term letting service too.
They make the process as smooth as possible, will draw up necessary contracts and collect the rent on your behalf.
The only downside is they have some pretty hefty fees. Listing your space is free, but for fixed-term bookings shorter than a week, you'll pay a 30% commission (+ VAT). Parklet charges a 25% commission (+ VAT) for fixed-term bookings between one and 12 weeks.
On monthly contracts, you'll pay a 20% commission (+ VAT), as well as a £25 (+ VAT) admin fee when they find you a tenant. For that reason, the longer you rent it out, the better.
Park On My Drive
The name says it all with this one. Although they offer a pretty basic service, it does a good job.
One big advantage is that you get charged a yearly fee of £20 instead of a commission. 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. You have nothing to lose here.
On the legal side of things, it has a parking space rental agreement that you need to print out and fill in. Easy!
YourParkingSpace is one of the newer players in this market, but it does everything you'd want it to.
The company offers a full management service, meaning they handle all questions and negotiations with the tenant. They also organise and collect the payments.
There's no fee for joining YourParkingSpace. However, they charge the buyer an additional percentage of the cost as a commission. They'll automatically add 20% on top of whatever your set rental price is, which will be the final cost that appears in the listings.
This means you'll have to be careful about how much you're charging for your space. If they're adding 20% on top, it could quickly become too expensive for drivers.
As well as car parking spaces, Stashbee also allows people to rent out empty rooms and garages to use as storage.
To rent your garage or parking space, you can add an hourly and monthly price. It's free to list your parking space on Stashbee. However, they take a 5% fee from any earnings when you start to get bookings.
Unlike YourParkingSpace, Stashbee doesn't deal with guest enquiries. Potential renters can send you questions and it's up to you to reply within 24 hours before the request expires. Luckily, you can restart the conversation if you don't respond in time.
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 listing fees (unless you pay to feature your ad, of course).
The downside to this is that you'll have to sort out contracts and payments by yourself, which can be a bit of a hassle.
You can also place an advert in the local paper or supermarket for a week. Or, try 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.