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How to Rent Out Your Driveway to Boost your Income
If you live in a big city like London did you know you can rent out your parking space and make money? Depending on your location, you could make more than £200 every month just letting somebody park in your driveway.
If you live close to a big transport link such as a railway station or airport, you could make serious cash. Your parking space would also be in demand if you live close to a shopping centre, beach or sports stadium.
Public vs Private Parking Spaces…
Today, a lot of people prefer renting driveways over parking at a public car park. From the commuter’s point of view, renting your driveway is beneficial as the driver will pay a fraction of what they would have paid at a public car park.
Your driveway also offers protection compared to public car parks where break-ins occur. There is also the issue of dinks and bumps at public parking spaces as other drivers carelessly park or reverse their cars from public car parks.
On a driveway, there is less stress parking over a public car park where space is not always guaranteed. Many people have also complained of extortion from local councils and eye-watering prices on offer at NCP car parks.
Due to this, homeowners saw an opportunity to rent their parking spaces and make money.
How to Rent your Driveway…
Renting your parking space is pretty straightforward. One way of renting your parking space is by joining car parking rental marketplaces. The two most popular sites are:
- Your Parking Space
- Just Park
Your Parking Space has over 250,000 parking spaces available hourly, daily, weekly and monthly. Drivers can book parking spaces instantly and save money. Trusted by over 1 million drivers in the UK, the site is user friendly. To list your parking space, visit Your Parking Space site.
Click ‘List your space for free’ on the top right corner of the webpage. Enter your location and the number of spaces you have. Click ‘Calculate Estimates,’ and the site will return how much you could earn each year renting your parking space.
Once satisfied with the valuation, click ‘Start Listing Now.’ Sign up with your email, Facebook, Google, or Apple. Follow the instructions to list your space.
On Just Park, the process is similar. Head to the Just Park website, click ‘Rent out your space’ at the top of the webpage. The site will redirect you to another page where you can get an estimate. Enter your postcode and the number of parking spaces available. The site will return how much you will make renting your parking space per month.
Click ‘Add your space for free,’ type your address, then click ‘Continue.’ Complete the application to list your space. Once you open an account on both sites, upload pictures of your parking space and set the price.
When drivers are looking for your parking space, they will set the dates and times when they need the space. Once they find your parking space is suitable for their needs, they’ll make payment online to secure the booking.
The marketplace takes a commission, and you get paid once the booking is complete. You don’t have to interact with the renter, but a courteous hello is a nice gesture towards a positive review of your parking space.
How Much Does It Cost to Rent Your Parking Space?
Just Park and Your Parking Space charge a commission, but the fees are not exorbitant. For example, Just Park will charge you 3% of your booking value. So, if you charge renters £20 to £50 a day, you’ll pay around 60p to £1.50 in fees. As such, you’ll take home £19.40 to £48.50.
Your Parking Space has a similar payment structure. But unlike Just Park, they do not charge you any fee. Your Parking Space also uplifts your price by 20%. For example, if you list your parking space for £10 to £30 per day, the marketplace will charge the driver/renter £12 to £35. Your Parking Space will keep £2 to £5 and will pay you the rest of the amount in full. No additional or hidden fees charged.
How to Value Your Parking Space?
To value your parking space, look at your area. Are you living in the city or close to a major transport link like an airport or railway station? Does demand outweigh the supply of parking spaces?
If there is a lot of demand for parking spaces and not enough spaces are available, you can make a lot of money. Competition is another issue when you want to value your parking space. If other homeowners close to you are renting out their parking spaces, you need to know how much they are charging.
Basically, put yourself in the driver’s shoes. Let’s assume parking space in your city/town costs £10 per day. Your competitors list their spaces for £11 per day, and they’re in high demand. To attract customers and beat your competitors, list your parking space for between £8 to £10.
Attract your first renters and build positive reviews. Thanks to the glowing feedback from your renters, the demand for your parking space will be high.
Is Renting Parking Space Taxable?
If you make up to £1,000 per year renting your parking space, you don’t have to pay tax. You are not required to declare or pay tax from renting out your parking space as long as the earnings do not exceed £1,000 a year. This is thanks to a new allowance introduced in 2017.
It allows homeowners to earn up to £1,000 income tax-free in addition to their personal allowances and property income allowance. Policies and government allowances do change. Always consult a financial expert, your local tax office or an accountant.
Tips for Renting your Driveway…
When listing your profile, we recommend providing easy to follow instructions on how to find your car parking space. Drivers want to find parking spaces and park their cars without fuss. As such, they want easy to follow instructions to find your parking space and what to do when they arrive. If it’s difficult to find your property, use available tools such as geotagging your location.
One of the biggest reasons why drivers post negative reviews on Your Parking Space and Just Park are unclear instructions. Another reason is blurry photos. They look unprofessional. If you are hoping for positive feedback, upload HD quality photos.
You should also be courteous when you meet the drivers renting out your parking space. Since you’re providing a service and want positive feedback, a polite hello will surely do.
Renting out your car parking space is not all plain sailing. There are mortgage and insurance issues to be aware of. There is also the issue of possible liability and neighbours who share the parking space with you.
Renting your parking space will not affect your home insurance. But you should double-check with your insurer. If you’re renting out a large plot of land, this could be seen as a business. As such, it has an impact on your home insurance. Since renting your parking space is a commercial agreement, insurers may exclude liability cover.
Renting your driveway is an excellent form of passive income. If on holiday or at work, leave a contact telephone number in case drivers need to reach you in an emergency.