Renting out parking spaces: are you sitting on a goldmine?

MSE_Martin

What's the deal?

If you've got a spare parking bay, you can rent it out and make extra cash from doing so. The big money is made by those with spare bays in urban areas, especially London (or near big sporting arenas).

How does it work?

While you've always been able to do it privately, there are now online parking marketplaces which allow you to list for free and tell people how much you want for your space (do compare it to the going rate). Of course, they wouldn't do such a lovely thing for you for free - the ones below both take a percentage of your earnings for their trouble.

You can also set restrictions on use if you're likely to need the space yourself during the weekend or at certain times of year. And you may even be able to do it if you leave home early and arrive late everyday.

There are two main sites:

• Parkatmyhouse is an easy-to-use, free-to-register-on site listing a few thousand spaces. Its main advantage over the site below is flexibility; you can even choose to rent out your bay by the hour here, so it needn't be free all the time. It also takes less of your earnings than youcanpark: 10% of each payment, plus a 25p admin fee. You can also use eBay-esque 'enhanced' listings; though as always you'll need to pay more for it.

• Youcanpark offers a very similar service, though takes more commision (15% + VAT). However, it offers one major advantage: it deals with the whole financial side of things; the person renting your space pays the site, then they send you a cheque each month with your earnings less commission.

Is it worth it?

These two sites both make it sound like serious money is to be made, yet I have no independent verification of that. Logically it makes sense; many parking meters in big cities get paid substantially more than minimum wage - so if you can rent out your space privately there's real cash.

However, as I've not tested this myself, this is more of an "it's an interesting development" rather than a "firm recommendation" - though I would love feedback from anyone who does try it. Also, do consider the security impact if you're allowing someone into a secured area in your home.

Martin

looby-loo_2

Such a great idea

My mum has rented out her drive for years. She lives 1/2 mile from an airport and people park safely at her house. She takes them and meets them on their return.

krishna

If you are in London (and there are some in other places like Brighton, so you could perhaps try from anywhere) you can rent out your parking space to Streetcar (https://www.streetcar.co.uk). This is a car club where members can hire cars by the hour from a range of locations. If they use your private parking space, not only do they pay you (though I don't know how much), but you also get a VW Golf parked outside your house which you can hire when you need it.

Running_Horse

Why don't people do a search before posting on this forum?

http://forums.moneysavingexpert.com/showthread.html?p=6172772#post6172772

Oops, sorry Martin, didn't notice it was you.

Thanks for the research I couldn't be bothered to do.

[Deleted User]

Wonder if the person who rents out, e.g. their drive space, has any liability if the car is damaged whilst parked there? Presumably the driver's own insurance would cover it?

seven-day-weekend

Although I don't have a drive (or even a parking space), my house in the UK is near to a football ground and we get all the football traffic parked on our streets.

I've often wondeed why those who do have parking facilities don't rent them out on match days!

Excellent idea.

paddy's_mum

A good idea in theory, but anyone thinking of doing this might be wise to check with their local council as to whether they need planning permission to do so. It could conceivably be classed as a (partial) change of use from residential to business use.

Similarly, some properties have restrictive covenants on them that prevent parking of commercial vehicles, or use of any part of the home for business. It only needs a miserable old so-and-so of a neighbour to telephone the tax office for malicious reasons to cause a real problem.

natsd_2

I don't want to rain on anyone's parade, but please remember that rental income is subject to income tax, which (if you are a higher rate taxpayer) could be as much as 40%! Please consult a tax specialist if you are considering doing this as they could help to reduce the tax impact.

Also, in my opinion, rent a room relief will not apply to letting your car parking space at your home.

Plus there may be Capital Gains Tax implications to consider!

Always get the appropriate advice before going ahead with something like this - a few hundred pounds spent getting the right advice could mean thousands saved in the future!

speedtwin

natsd wrote: »

I don't want to rain on anyone's parade, but please remember that rental income is subject to income tax, which (if you are a higher rate taxpayer) could be as much as 40%! Please consult a tax specialist if you are considering doing this as they could help to reduce the tax impact.

Also, in my opinion, rent a room relief will not apply to letting your car parking space at your home.

Yes but what if you word a argreement that they are renting a room with a parking space but they dont happen to use the room???

mmmmmmmmmmmmmmmmmm ]

seven-day-weekend

Just charging to park on a drive/parking space would not require Planning Permission imo as it is minimal.The dwelling would still be considered to be residential.

The point about checking on restrictive covenants is relevant though.

olly300

Also if you are tenant your rental agreement will make it clear whether you are allowed to sublet any part of the premises or not. Most won't allow you to so renting out the car space is a no-no. And lots of landlords who manage their own properties will not turn a blind eye to you doing so however they won't have a problem if you let someone you know use the space as long as money isn't changing hands.

I use to live in a house where you couldn't park on the road and the landlord was ok with our friends' parking cars there even if they weren't around to visiting us. (Obviously we had to know whose car it was.)

I also use to regularly use a space from someone I knew, one of their neighbour's got p!!s off and complained. However because I wasn't renting the space there was nothing they could do.