Rent Out Your Parking Space
Earn cash from your driveway
Is your driveway paved with gold? If you live in a big city, near an airport or a train station, it might be.
Online parking marketplaces let you rent out car parking spaces - some earn £200/mth or more. Plus if you're looking for a space, they're a handy way to find cheap parking too.
While every effort's been made to ensure this article's accuracy, it doesn't constitute legal advice tailored to your individual circumstances. If you act on it, you acknowledge that you do so at your own risk. We can't assume responsibility and don't accept liability for any loss which may arise as a result of your reliance upon it. Thanks to Crosse + Crosse Solicitors.
In this guide
Get Our Free Money Tips Email!
Rent out your parking space
Depending on your area, you could net up to £200/mth (more in some places, eg, parts of London) just for letting somebody park in your drive or garage. The most covetable spaces tend to be in city centres, but you can still make serious cash elsewhere.
If you live by a big transport link such as an airport or railway station, or even a footie ground, it's worth a quick valuation.
To get an idea of what you might be able to make, clever online tools can give quick estimates. You can see what those nearby charge for long-term stays (eg, a month) with Park Let’s price guide tool.
This is purely rough reckoners though, and won’t necessarily give the highest price. Use the results to help you decide whether it's worth progressing to the next step.
It's also worth noting we’re talking about off-street parking spots on your own property here. Sadly, it breaks almost every council’s rules to simply sell on your residents' parking permit.
Get Our Free Money Tips Email!
Top 'rent your parking space' sites
Nearly all the big parking sites and P2P parking apps (peer-to-peer, which means the renting's between individuals rather than companies and customers) are free to list on, so there's nowt to stop you listing everywhere. But the amount you'll end up with will vary depending on the cut they take, plus any other fees.
Going with one of the bigger sites may mean less hassle and more visibility, plus higher demand should mean you can charge more. But remember the site will take a cut. Before you list, make sure you read the list of things to watch out for below too. Here are the biggies:
Strong all-rounder, broad reach
One of the more established players, JustPark* has good user feedback. Signing up and listing a space is free, but it does charge commission when you successfully rent it out - 3% of the amount you receive. For bookings of over two months, it takes 20% of your first month's payment and 3% thereafter.
Handily, it sorts out contracts and processes all the payments, transferring earnings to your PayPal or bank account. It also ensures you get paid even if the driver doesn't turn up. You can rent out spaces by the day, week or month, and add any number of restrictions on when they're unavailable. All users can - and tend to - leave feedback.
Good for long-term rents
Another website with a very comprehensive service and good user feedback is Parklet*. It's a good one to use if you're looking to rent out your car parking space for a longer period, like a month - however it is one of the most expensive.
The company works like any other letting agent, dealing with all the contracts and processing all the payments itself, so you do get a bit extra for the cash. Listing is free, so its fees are only payable if you succeed in renting out your space.
Low cost but limited service
When looking at price alone, Your Parking Space is also a winner as it doesn't charge anything for you to list your space.
It makes money by charging the tenant a 'service' fee of around 20% on top of the amount you charge a tenant, so it doesn't take a slice of your earnings.
You'll need to work out how much you want to charge (for a guide have a look at similar spaces near to you) but it will then organise the rental, answer questions from the person renting your space and automatically send out payments to you.
Basic features, but low fees
Park On My Drive is basic but cheap. It's free to list your parking space but you have to pay a one-off yearly registration fee of £20, though this isn't deducted until the first booking is made. This means if you don't ever manage to rent out your space, you won't have to pay any fees.
Once you pay, you get a dedicated calendar page where people can book out available dates. Plus it provides a parking space rental agreement to print and fill in. It now offers a pre-payment system, where the tenant pays a surcharge to Park On My Drive, which in turns organises your payment. It also has a review system and you can upload photos of your space.
Low fees, but you'll have to DIY
You can list nigh-on anything on the free classifieds site, and car parking spaces are no exception. If you live in a popular area, you stand a decent chance of finding a tenant, but you'll have to work out contracts and payments yourself.
You have to pay if you're posting in property, and this will vary depending on your ad. We were quoted £12 for a basic ad with pictures, but there were options such as adding an 'urgent' sticker for seven days for £4.95 or putting your ad on the homepage for seven days for £17.95.
As Gumtree is a sprawling site, hardly anybody will just come across your ad in passing, so it's vital to make an accurate listing which stands out in searches. Handily, it also has free apps for both iOS and Android devices.
Fees: Depends on the ad.
Get Our Free Money Tips Email!
What to watch out for
Renting out your parking space isn't all plain sailing. There are income tax and insurance issues to be aware of, as well as the need to manage your possible liability. Plus be considerate to any neighbours you share a driveway with.
Some more officious local councils have deemed renting out your space a 'change of use' to your property, asking for a £385 planning application fee. But the Government says renting out one parking space without planning permission is fine in England, provided it's not a nuisance to neighbours.
So while there can be a conflict between local councils and the Government on this, ultimately what the Government says goes as it has the final say.
The Ministry of Housing, Communities and Local Government tells us it doesn't believe renting out a parking space is a change of use that needs planning permission, and has published guidance to make this clearer on Gov.uk.
It says that if the council asks for a planning application fee, you should challenge it, and refer the council to the Government planning guidance.
If a council still starts a planning enforcement notice, you've a right of appeal - and planning inspectors that deal with these are expected to follow Government guidance. For how to appeal, check on your local council's website at Gov.uk.
As this applies to England, it's worth noting that elsewhere it's still a grey area, so some local councils may ask you to apply for planning permission to continue doing it. See the Government to stop councils' 'backdoor parking taxes' MSE News story.
A few more things to watch for:
It's important to have a written contract, for instance, to specify you're not responsible for vehicles or items left inside them whilst in your space. As mentioned above, many of the sites will provide contracts for you.
If not, there are free basic agreements available online that you can download and print to help, including a PDF from Park On My Drive. Yet always check you're happy with the situation first, and don't sign anything you're not happy with. Solicitor Zoe Tibbles from Crosse + Crosse LLP says: "The agreement should let you terminate it on a specified amount of notice (say, a week or two), oblige the renter to keep the space tidy and not store items there, or block access with their parking."
This is generally the case (there are exceptions though). Just because it's your parking space, don't underestimate what's happening here. You are agreeing to give a stranger access to your drive, so after that point, they can come and go as they please.
Always carefully consider the safety impact of this - as an extra precaution, if you live alone (especially if you're female), consider having a friend or family member with you when you first meet a new potential renter.
Some warned that if you were, however, renting a large plot of land this could be seen as business and so could have an impact. Others said that as renting out your driveway is a commercial agreement it may exclude any liability cover if something were to happen, to say the car owner or the car.
Buildings insurance may include liability cover in the unlikely event your property collapses and causes damage, though this won't always be the case - if not, you may need a separate liability policy.
If you’ve only got contents insurance, you’re unlikely to be covered for this. Either way, ensure the contract also clearly states you aren’t responsible for any damage, to be on the safe side.
You may need to pay tax on the rent you get for your space, as it counts as income from land and property (rather than self-employment income).
But any cash earned from renting out your space up to £1,000 is exempt from income tax, so you won't need to tell the taxman about any parking space income up to that amount.
If your total annual income from renting out your parking space is over £1,000 then you have to tell HMRC and may need to fill in a tax return.
If you already receive a tax return form. Just include the income in ‘Box 20 – Total rents and other income from property’ on the land and property page. This is all you need to do – you shouldn’t need to contact HMRC separately. If you use a paper return and don’t already have other rental income, you'll need to ask for this page from the HMRC.
If you don't already receive a tax return. It might be worth phoning or writing to your tax office to let it know you've a new source of income from renting your parking space. If you do need to pay tax on this income, the tax authorities may deal with this in your PAYE code, or could ask you to fill in a tax return. See HMRC.
If you’ve a mortgage, it’s a grey area among mortgage lenders as to whether you need permission from them to rent out your drive, so it’s worth checking the rules with yours first. You could give your lender a quick call in the first instance, noting who you spoke to and when, as a written reply's likely to take much longer.
If you rent rather than own the property, it’s best to check the terms of your tenancy agreement before renting out your space, and get the landlord’s permission in writing. Similarly, if you've leasehold rather than freehold ownership, check the terms of your lease.
Provided the terms don’t prevent it, your landlord agrees, and it’s your own space (ie, not communal) you should be fine to rent out your parking space if you wish.
It’s highly unlikely you’d be able to do this with a communal space, as you’d need written permission from the landlord and all those entitled to use the space – plus as it’s a shared space, you wouldn’t be able to ensure it’d be kept free.
Find a cheaper space and halve your parking costs
If you drive to work, pay for monthly car parking with one of the big chains, or just pay over the odds for your regular Saturday football space, you might be able to halve parking costs by renting a private space instead. Plus you can get a rough idea of savings in seconds.
Try Park Let's price guide tool, which lets you search for guideline UK parking prices on a map. Just drag the area of the map you'd like to park in under the 'X'. You'll only find the average though, so even if the saving's good, use it as a benchmark to beat.
Once armed with Park Let's best price, try comparing some of the sites above which can also be used for renting a space, such as JustPark*, Your Parking Space and Park On My Drive. If you're willing to dig a bit more, you could also try Gumtree. If they can beat the price, you might want to take the plunge, but always consider the following first:
Security is a potential concern when parking privately, especially if you've a flashy motor. Always check the space carefully for yourself first. It may be possible to pay a little more for underground or garage parking which may be safer.
If you're looking for a spot in a city, where rents are the highest, it might be worth casting your net out a little wider. Sometimes you'll find decent price drops by parking just a little bit further from the office.
Try finding a cheap parking deal that suits your usage. Some people rent out their spaces only at the weekends or in the evenings. So, if you only need the space during that time, it's likely you'll bag a better bargain.
Payment systems vary as we explain above. Just Park and Park Let process payments themselves, yet all the other services leave it to you to work out payment with the person letting the space.
NCP car park monthly season tickets vs cheap parking sites
|London WC1 (1)||£230||£100||£80||£143||£240||£150|
|Manchester city centre (2)||£118||£82||£88||£150||N/A||£36|
|Prices based on monthly average. 1. Within 1 mile of King's Cross St. Pancras station. 2. Within 1 mile of Piccadilly. 3. Based on nearest NCP monthly season ticket quote. Prices subject to availability.
As the table shows, by swapping NCP's season tickets for a private parking space it's possible to cut parking costs, with just a quick search of sites.
Get Our Free Money Tips Email!