Originally written for Radius Blog
Cities these days are very strapped for parking spaces, and this has transcended a demand for driveways like never before.
If you have a nice, big driveway that’s empty more often than not, you could truly be in line for some oodles of cash! If you’re on vacation, if your car is mostly at work, or if you have some space that you never use, list it for a couple of hours, months, or a year! It is really that easy!
Why you should consider renting your parking space
1. You get to be the Boss
You are in total control of who will park in your parking space, and when. All you have to do is find out what works best for you, and list your parking space accordingly. You’ll surely have bookings in the blink of an eye!
2. Make more money
Since your parking space is also real estate, the golden rule of real estate “Location, location, location” applies here, too! If your parking space is in a prime area, you’ll make more money renting it out. The location has a great influence on how much money you can make especially if the parking space is close to an event or a landmark.
You can make from $15 to $35 a day, if you live in San Francisco, New York, Boston, Philadelphia and Chicago, $5 to $25 a day if you live in Denver, Los Angeles, Houston, Atlanta, and Portland.
What you need to know about renting your parking space
1. Have a written contract
A written document can save if in case of any disputes or misunderstanding later on. While you write one, clearly mention the specifics of your driveway or parking space, how much of it is being rested to the tenant, during what hours of the day is the tenant allowed to make use of the parking space, and what kind of vehicles can be parked. You can also mention that they will be responsible for any damage to the property.
2. You will be letting someone else use your property
By renting your parking space, you will be granting permission and access to someone so they can make use of your driveway. It means, they have a right to use your property, which is a license.
3. You may require your mortgage provider’s permission
Make sure to verify with your mortgage company before you rent your parking space. Check the terms of your mortgage thoroughly, and contact the company if you need any clarifications on how you can proceed.
If you’re a tenant, check the terms to your tenancy and seek permission from your landlord.
4. Check the insurance on your building
At times, granting of a license to rent your parking space as a commercial contract may abrogate the insurance policy you have on your property. Check with your insurer to make sure your insurance policy does not get nullified.
Here are a few tips that help you rent your parking space
- There are many parking pace rental apps and sites you can use to list your space. Make sure to list on more than one sites to have maximum visibility.
- Update your schedule as frequently as possible so you don’t miss out on any potential renters.
- Market your parking space all over social media. Actively create posts to let everyone know there’s a spot available.
- Describe your parking space well enough, with as many details possible. This helps renter get the best idea of what they can expect. Including pictures is even better.
- Give a rough estimate of what you may charge by the hour for someone to park in your space.