Got a parking space but don’t have a car? You could be sitting on a goldmine.
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 snag a tidy £200 a month – or even more if you live in central London.
Yep, you heard right – £200 a month for doing absolutely nothing. And because you don’t need to do anything, 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 starting your parking space empire…
Can you rent out your parking space?
In short, probably! There are a few things to consider first, though:
- 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 that 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.
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 is your car parking space worth?
Depending on where you live, the amount you can charge for your space will vary dramatically. And when we say vary, we mean £50 – £500 kinda vary.
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 might expect to earn, decide which service you want to use and see how much people are renting out their space for.
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 (a local resident) to buy a permit on the road. Profits!
How do you rent out a parking space?
Before you go all out and let that space roam free, there are a few important things to tick off your checklist.
Although legal stuff can sound proper fiddly, we promise it’s not that hard, and it is super necessary.
You need a proper contract
Yes we know, it’s just a driveway. But legally you’re seen as a landlord with tenants (and responsibilities). At least you can put it on your LinkedIn, eh?
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 sub-letting (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 explained 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 will be taxable if it takes you over your yearly tax free limit (aka 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.
Where to advertise your car parking space
There are a wide range of sites to help you market your prized piece of tarmac (or bricks, or gravel, or… well, you get the idea).
We’ve only mentioned sites that are free to list on but be aware of their other charges, such as commission once the space is rented.
Here’s a few of the best and most popular sites that’ll help you advertise your space to as many people as possible.
Best places to list your car parking space
A big player in the parking world, JustPark is one of the best options for people wanting to earn some money 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% of any booking you receive. For any booking over two months, they’ll take 20% of the first month’s fee, and 3% for each month thereafter.
They also charge an additional 25% to the driver (if the booking is made through the app; it’s 30% if booked on the website) if the booking is for less than two months (10% if it’s longer than that).
For this reason you should be wary of not listing your space for too high a price, as buyers still have another whack of money to spend even after paying you!
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 only get charged a yearly fee of £15 per space you rent, so depending on the amount of rentals you’re doing and the price they’re up for, 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, however, 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.
So, do you believe us now? This has got to be the easiest way to make money ever!
Check out our top tips for saving money on driving for more ways to cut the cost of owning a car!