Need extra cash during these hard times? Then renting out your parking space can be a great way of boosting your income.

If parking is difficult where you live, you can earn around £100 a month – and can even reach as much as £250 per month in the capital – for renting out a parking space.

The rental of parking spaces has boomed in the last few years. Since the introduction of the congestion charge the demand for parking spaces in London, in particular, has increased.

But it’s not only London where the demand is. With the enforcement of stricter parking restrictions, more and more people are looking for parking places.

But how do you go about renting out a parking space?  Find out more on how to advertise your parking space rental and what you can earn.

Can I rent out my parking space?

Yes, as long as the parking space is owned by you and not by a landlord or third party.

Remember that it doesn’t have to be a driveway. Renting out a parking space in underground parking in a block of flats is also very popular.

If I rent out my driveway, can I ever use it myself?

If you rent out one parking space on your driveway, you can, of course, still use the other. You could also rent out the parking space for a set amount of time (e.g. office hours) so you can use it at other times.

How much is my parking space worth?

The rental income you will get will depend, of course, on where you live and how much people are prepared to pay. London is always popular and most desirable in terms of rent.

The price will depend on various factors and how desirable the space is. This involves whether it’s close to a town centre or to transport links, such as train stations or major roads.

If your parking space is covered and secure, people with more expensive cars, or with vans full of expensive equipment, will find it more desirable.

If your area has parking permits, which are usually for residents in the area, then businesses may also be keen to get their hands on your parking space as permits may be scarce.

The average price is £100 per calendar month, but in London you can earn up to £250 per calendar month.

Where can I advertise my parking space?

There are various websites where you can advertise your parking space. These include:

These websites will give you a good estimate of how much your parking space is worth based on your postcode and they will put you in touch with potential customers. You can then meet them and come to an agreement.

Do I need a contract?

Yes. It’s wise to use a Parking Space Let Agreement to get the rental agreement in writing.

The agreement should specify how long the tenant is going to rent the space, between what hours and for how much. It should also provide a notice period. Lawpack’s Parking Space Let Agreement includes all these terms.

Both parties should sign the agreement.

Do remember that the income you get is taxable.

Are there any disadvantages to renting out a parking space?

If you rent out a parking space, you obviously must make sure that the space is available when the tenant needs it and that no-one is in the space at that time.

To do this you may have to put up notices to say that unauthorised vehicles will be removed or you may need to put up a parking post.

If the renting of your parking space ends up not working well, then you can always terminate it. Lawpack’s Parking Space Let Agreement includes a clause for you to provide a notice period to the renter of your parking space.