Renting out your parking space

Renting out a parking space is a great way to boost your income. If you live in an area where parking is difficult, you can earn up to £100 a week for a parking space. Whether you have a suburban front driveway or a parking space in a block of flats, it's a valuable commodity.

How much is your parking spot worth?
This depends on a number of factors. Obviously, if it's relatively easy to park in your area, there will be less demand for spaces. If your space is covered and secure, people with more expensive cars, or with vans full of expensive equipment, will be keen to get hold of it.

There are several specialist internet sites where you can advertise your parking space eg www.yourparkingspace.co.uk, parkatmyhouse.co.uk and www.parklet.co.uk. These often have a sort of ready-reckoner, which will give you a good estimate of how much spaces are worth in each post code area. You can also have a look at the adverts on websites, to see how much other people are charging.

Remember that it's relatively easy for residents to get parking permits in most areas. However, business people and commuters may not be eligible for these permits. These people might be very keen to rent out your space.

If I rent out my driveway, can I ever use it myself?
This depends on a variety of factors. You might for example have enough space for two vehicles. If you rent out one space, you could still use the other. You could also make an agreement to allow somebody to use the space at certain times - ie office hours. At other times, you could use it yourself.

How do you go about renting it out?

There are a number of sites such as www.gumtree.com, where people advertise property and rooms - many of these will also allow you to advertise car parking space too. www.yourparkingspace.co.uk, parkatmyhouse.co.uk and www.parklet.co.uk will put you in touch with potential customers. You can then meet them and - if it's mutually acceptable - come to an agreement with them. Also local estate agents can find you suitable tenants.

Do you need a contract?
Yes, you should have some kind of a contract. Some of the specialist sites offer downloadable contracts for their customers. At the very least, you should send the customer details of price, location and the availability of the site (ie can it be used all the time or only on weekdays?). You should also include details of notice period (ie the contract can be cancelled by either party, with a month's notice). The person renting the space, should then sign the paper, or send a letter indicating acceptance. If you're worried, you can get a solicitor to draw up a formal contract.

Are there any drawbacks?
If you rent out a parking space, you have to make sure that your tenant can use it properly. This means that you have to make sure that no-one else is parking on it when your tenant needs it. You might have to put up notices, saying that unauthorised vehicles will be removed. Or you might need to put up a parking post with a lock. If for any reason the rental is proving unworkable, or if your tenant is too much of a nuisance, you can simply give notice to terminate the agreement.