Hello everyone! Today I’m writing about an idea for either making a little extra money or potentially saving some money – renting out your driveway or a spare parking space.
I’ve been making use of this myself in the last few months – I live in a block of flats which doesn’t have spare parking, so instead I’ve rented a private driveway.
So today I’m going to discuss the circumstances where I think people can either make or save a little bit of money by making better use of driveways!
I think this is a really good opportunity for both sides – if you need a space on a regular basis (such as something near a station for a commute) a driveway can be more cost-efficient than using a station car park. Equally if you simply have spare space, it’s a great way of monetising it – especially if you live near something where parking is occasionally at a premium like a sports ground.
Apps and websites to buy or sell parking spaces
There are now a small collection of apps and websites devoted to buying and selling parking spaces.
I’ve been using Your Parking Space but there are various websites available each with unique spaces, so it’s worth having a look at them all to get the best combination of price and location for you. Some other better known apps include ParkLet and JustPark.
The way they work however is relatively familiar – you can either rent a parking space for a particular day, or each a longer term but cheaper agreement to take a space on a monthly rolling contract.
The websites usually include pictures of the space and some detail on if it’s a garage, driveway or private car park. You can also see reviews if people have previously made use of the space.
There’s also usually information on any restrictions to access at certain times (this is rare) or if the space is only going to suit certain cars – the one I’m in has a bridge leading up to it meaning anything bigger than a small car would face some serious issues!
If you’re buying a parking space, you’ll simply see an upfront price which you’ll pay, and be sent specific details of the address and the ability to contact the space owner.
If you’re selling a parking space, you can specify the price you’d like to list it for (the website/app will take a cut, more on that below) and any other restrictions or detail you’d put on it.
Questions on buying and selling parking spaces
Which app or website is best for buying parking spaces?
The websites and apps for all of Your Parking Space, ParkLet and JustPark are pretty well developed and easy to use.
As costs to rent a parking space are largely upfront, I would suggest running a search on them all for the best space for you based on price and location, and letting that be your deciding factor.
When selling a parking space, what do I pay in fees?
Here’s where there is quite a bit of differentiation across the parking apps.
For YourParkingSpace, you list your price and receive all of that amount – however the purchaser of your space will actually pay 20% more than the amount you list to cover YourParkingSpace‘s fee.
JustPark charge 3% of the total fee to owners on short term rentals, and 20% for the first two months on long term rentals for the first month, then 3% on subsequent months.
Parklet charge 30% commission on a 1-6 day rental, 25% on a 1-12 week rental and 20% on a longer term rental – however on the latter they also charge a £25 admin fee, payable in the first month.
Are there potential dangers in renting a parking space?
The websites all try and verify proof of ownership of the space but as with all “listing” type sites, fraud (someone listing a space they do not own) can be a rare problem.
We recommend counteracting this by trying to target spaces which have been previously used and reviewed, albeit you may pay a small premium for this.
If you become aware of a potential issue, it’s important to get in touch with the website you’ve booked through straight away.
Do I pay tax on renting out a parking space?
You are allowed a £1,000 “use of housing” allowance each year as tax free income which you can put this towards, alongside a £1,000 trading allowance. If you earn more than this, you’ll need to declare it on a self-assessment tax return and pay tax at your income tax rate. (Also, see our guide to other handy UK tax allowances!)
How much can I earn renting a parking space?
This very much depends on your area – in premium parts of London I’ve seen parking spaces go for £500 per month. If you’re near key facilities like a train station or stadium, there’s likely to be more of a premium available.
The apps also allow you to see what parking spaces are “taken” at present and what they’re listed at, so you can use this as a comparison to judge your own pricing and set a rate someone is likely to bite on a parking space at.
Any questions?
Let us know if you have any questions on any of the apps! And if you’ve found renting out a parking space has been a good money-spinner from you we’d love to hear about it! Just let us know in the comments below.
And that’s it!
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