Wednesday, 2 April 2014

Renting out your Driveway

Renting out your driveway can be highly lucrative and is achievable with minimal hassle.

A number of parking space rental websites have popped up in recent years. These sites have made it hassle-free for homeowners to earn money from allowing others to park at your home.

Why should I rent out my parking space?
If you live close to a city centre or large town centre or near to facilities such as an airport, sports stadium or a tourist attraction, you may be sitting on a goldmine.  Parking spaces in prime locations can be worth well over £150 a month.

How do I rent out my parking space?
Specialist parking space rental websites operate rather like online dating agencies.  They work by putting people seeking to rent a space in touch with homeowners with parking spaces available in that area.

Most websites will charge for the privilege of hooking you up.  The majority of the specialist websites will take the payments and will then pay you (after skimming off a commission).  Non-specialist websites, like Gumtree, will leave it to you to collect payment from the person renting your space.

How much can I earn from my parking space?
Expect to achieve a rental income of around £7 a day if your home is within easy walking distance of the centre of one the UK's larger towns or cities.  If you are renting on a monthly basis expect to earn around £85 per month.  

£85 is the equivalent of £1,020 a year.  If you can accommodate two vehicles on your driveway that makes £2,020 a year!  That's a lot of money for little exertion on your part.

These figures will vary from city to city.  Northern cities such as Sheffield and Stoke will fetch around £5 per day.  Whereas renting out your driveway in southern cities such as Reading and Bristol will earn you around £8 a day.

Prices can be inflated by local factors, such as the number of commuters into the centre, the level of parking restrictions, and the parking prices at public car parks.  For example, homeowners on the edge of Hull City Centre can expect to earn upwards of £7 per day from their parking space due to the strict parking restrictions in place in and around the City Centre.

Which location commands the highest parking space rents?
That would be London.  No surprise there!  Typical rents are around £9 per day.  Or £116 a month if renting out on a monthly basis.

However, these figures hide some large variations.  Expect to make around £180 per month, or £15 per day, if you are lucky enough to own a parking space in Hammersmith & Fulham or Kensington & Chelsea.   Parking spaces in the Boroughs of Bexley and Havering on the other hand will fetch less than half that at £80 per month, or £6 per day.

Are any other areas popular for driveway renting?
Sports stadia and airport car parking spaces are in high demand.

If you own a property near to one the UK's largest airports, you can expect to earn around £6 a day, rising to £7 a day near Heathrow.

Is there a standard parking space size?
The specialist parking space rental websites are not too fussy about the size and dimensions of the parking space. However, your prospective tenant will be.  You may have to charge less for a space that is smaller than standard or which is difficult to park in.

Do I need a contract to rent out my driveway?
Yes, you should enter into a contract with your prospective tenant.  Most of the specialist websites have standard contracts that can be downloaded.

Do I need planning permission to rent out a parking space?
Some Councils require their residents to submit a planning application, along with a £385 fee, before they can rent out their driveway or garage. Although recent Government guidelines frown on this practice, which has been labelled a Council "driveway tax" by the Local Government Minister Eric Pickles MP.

Will I have to pay tax on my driveway parking earnings?
Yes.  The income on the rent you receive from your parking space is taxable.

What are the downsides to renting out my driveway?
The obvious downside is that the parking space needs to be made available to the tenant when they need it.

Your neighbours may take umbrage to you renting out your driveway.

You will need to check with your insurer as to whether renting out a parking space will impact on your buildings insurance, particularly if you are renting out your garage space.

If you have space to spare on your driveway, and live in the right location, this is an excellent way to make money from your home.   Using a specialist parking space rental website will make the process almost hassle free.



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    Rent My Parking space