Top Tips When Renting Out Your Unused Parking Space

There are many ways to earn extra money without having to undertake additional work. One option that is rapidly growing in popularity is renting your car parking space. It’s incredibly lucrative if you live in a city or near the train station. 

The simple fact is that car parking is expensive, especially if you live or work in the city. That means plenty of people are looking for cheaper alternatives, and your parking space could be perfect for them. 

The same is true if you live by the train station as commuters need to park and you’re sure to be a cheaper option than the standard car parks.

All you need is a spare parking space, and you can rent it to get yourself some extra money. However, before you dive in feet first, take a moment to check out the following tips. They’ll help to make sure you rent your unused parking space properly.

Make Sure It’s Not Used!

The first thing to consider is whether you can spare the space. If you have an allotted parking space and no car, then you’re onto a winner. But, if you have two spaces and one car, make sure that giving up the other space won’t become a problem. 

For example, if renting a space makes it difficult for you to park your vehicle or hard to access your area, then you’ll have to consider whether it’s worthwhile. 

Providing there are no issues with access to your space or someone using the space at all times of the day and night, and then you’re good to go.

Don’t forget that while many city spaces are under the apartment block, if you’re renting space in your drive, you’ll potentially need to put up with the headlights shining into your home at all times of the day or night.

Check Your Lease

Once you’ve established that you have space, or two, to rent, you’ll need to check your lease. This isn’t an issue if you own the property. But, if you rent or own an apartment, there will be an agreement that needs to be checked. This will confirm that you’re allowed to sublet your parking space.

Ensure you check this before you start; if you don’t, you may find yourself in trouble.

Use An Agency

Perhaps one of the most important steps when looking to rent your unused parking space is to use an agency. It’s best to look for a company advertising car storage near me. They will specialize in connecting people with rooms to rent to those that need the space.

Of course, it is possible to do this yourself and place adverts in various locations. You can even go into local businesses and leave business cards, encouraging people to contact you if they want a cheap parking space. You’ll probably generate a lot of interest. 

However, alongside the time it takes to advertise and screen the people who enquire about the space, you’ll also need to draw up legally binding contracts. It’s best to have these done by a professional, and that can be expensive.

There’s a good reason to draw up contracts. It would be best if you were specific about who you are renting the space to, the fact that they can only use it to park a vehicle, and the times or days they are allowed to use the space. These are generally flexible terms depending on what your renter wants. But, having them established and written into a contract ensures that you can protect your space as both parties know what to expect.

This will be essential if you have any issues with your tenant and your parking space use. 

Consider Access

We’ve already looked at making sure renting a space doesn’t block access to your space if you need it. However, you also need to verify the access system. This is especially relevant if you’re renting a space that comes with your apartment. There is likely a barrier, and a code or key will be needed to get in and out. 

You might be able to get a spare fob or tell your customer the code. It would be best to verify the options before renting; this ensures there are no issues when you start renting out space. It’s also possible to get a critical safe that will allow them to get in without any hassle.

Setting Your Charge

The agency helping you with renting out your parking space will help you establish the correct rate. Don’t forget they’ll take a small proportion of the funds. As a general guide, you should be looking at how much it costs to park in the main car parks. It can be hundreds of dollars a week. 

Once you know the rate that your customers will have to pay, you can set yours lower than this, making your space very appealing to everyone driving into the city. In most cases, the private renters will set their rate around 60-70% of the standard car parking charge. It’s a good saving for the customer and a great little earner for you.

Allow For Tax

Renting your space is a passive income. In other words, you don’t need to do anything to earn money. While this is great, it is still income, and you’ll need to declare it and pay tax on it. Make sure you register the earnings properly. If you don’t, you may end up with a nasty surprise in the future.

Final Thoughts

If you haven’t considered renting your unused parking space before but have space available, then it’s time you did. You won’t just be making some extra money. You’ll be helping others to save money, which makes it a win-win situation.

It takes minimal effort to check you can rent your space and try it out. You can always keep the contract short and make it a one-off experience if you don’t like it.