Many people do not realise that there is a low maintenance, potential income generator sitting on their property. If you live close to an area where events take place or near a commuter route, you could earn some extra income by renting out your parking space. If you do not use your driveway or your garage is gathering dust, doing this is an excellent way to put it to good use.
Why do it?
You could earn extra cash from renting out your parking space without having to do too much. Unlike many business ventures, you will not need to pay for any equipment or stock to get started. Once you have reached an agreement with someone to use your space, there is very little need for you to do anything unless a problem arises. There are some things you will need to check however before you start advertising your parking space.
How does it work?
To start with, you will need to find a place to advertise your space and create a description. After you have created your listing, you should be ready to go. If you are renting out your garage you will need to meet the guest initially to hand over a copy of your keys (unless there is another method of access such as key code entry). If handing over keys sounds like too much hassle, renting out your driveway may be an easier option. Unless a problem arises, the agreement you reach with the guest should allow them to come and go as they please within the times they are allowed to park there.
Are you allowed to rent it out?
If you rent your property, you will need to check with your landlord first to avoid breaking the terms of your tenancy agreement. If your property is on a lease, you will need to check the terms of this as well. For those who require a parking permit from the council, it is unlikely that you will be allowed to rent out your parking space. If you own your own property and do not require a permit for parking then you should not have a problem.
Is it safe?
It is important to highlight that you will be letting strangers use your driveway and safety should be an important consideration. If the thought of doing this makes you nervous, consider whether this is right for you. If you are worried, you could install a security camera and let your neighbour know that you intend to rent the parking space out. Restricting parking use to daylight hours is an easy safety measure but bear in mind that this could affect the amount of revenue you generate. Think about the times guests may arrive and whether you want people coming too early in the morning or late at night. Whatever you choose to do, consider the impact that having lots of cars turning up at your property may have on people that live close by.
How much money could you make?
You will probably make more money if you live in populous areas like London and the most in demand areas could generate £1000s in income. Think about the potential people that may want to rent your space. Are there lots of commuters in your area? Do you live in a popular holiday destination? Research events nearby. Do you live near places where regular events are held such as music venues and football stadiums? Your location will determine both your revenue potential and any seasonal changes in demand. Look at the competition in your area on parking websites and use this as a guide when setting your prices. Some parking websites have calculators that can estimate your potential income but it is best to use these as a guide only.
Where should you advertise your parking space?
There are several parking websites just a Google search away that can allow you to do this. The advantages of using a parking website is that all of the marketing is provided for you and is a natural place that car owners will look to. Be sure to factor in all of the fees for using these websites as they could eat into your profits. Ultimately, you can list your parking space anywhere but if you are not doing it on one of these platforms then you will have to sort everything from marketing and payment collections yourself.
Are there any laws you need to consider?
The government has previously published advice confirming that no specific planning regulations are required to rent your parking space unless there are “substantial planning concerns such as a public nuisance to your neighbours.“
You will also need to consider whether you have to pay any tax on your income. If you make more than £1,000 from your parking space, you will need to notify HMRC.
You will receive more bookings if you get more positive reviews. Send a follow up email to your guest after their stay to increase the chances of getting these.
Make sure you create an accurate description for your listing. Inaccurate descriptions could lead to negative reviews and decrease your chances of getting more listings. Take a well lit photo of your parking space so that users can see what it looks like as well.
If you are still struggling to get bookings, consider changing your prices.
Rent it out to multiple users
If you rent out your parking space to regular users, consider renting it out at different times to maximise the number of people using it and get more income. If you have a large parking space that can fit multiple cars, you may have even less of a restriction when it comes how many people can use it.
Set the ground rules.
Setting reasonable ground rules are important. Remember that it is your property and establishing boundaries is important. If you choose not to use one of the main parking websites and use something like Gumtree instead, get them to sign a written contract that signs them up to your rules. Make sure they are responsible cleaning up any mess they leave and that you are not liable for any actions caused by them. Having a clause in the contract that allows you to terminate the agreement means you can end it easily if you no longer wish to continue with the arrangement. Think about what rules you want to set and how these may effect your neighbour.
It might be easy to make money from your parking space but do not forget to keep a record of how much you earn if you are liable for paying tax. If you are investigated by the taxman, you will need to keep meticulous records.
Are you insured?
In our parking insurance article, we showed that many insurers will not cover you if any claims arise as a result of renting out your parking space. Whilst it may seem unlikely, you could still be liable for damages if something bad happens (such as a guest crashing into your property or injuring someone). If you do not have cover for this, getting cover with a specialist provider such as Pikl is quick and easy.