If you've got space on your drive or in your garage for another car there's easy money to be made. In this article, we share a quick guide to making money by renting your parking space.
How to rent out your parking space
Websites such as JustPark and YourParkingSpace make it easy to make money out of your spare parking spaces. Simply register and enter the details of the space, including full address, availability and facilities (such as lighting at night) and then set your price. The websites will do the rest.
How much will it cost to rent my parking space with JustPark?
JustPark offers listings for free and only charges fees if the space is rented. The fee amount will vary according to the duration of rental as follows:
- Owners are charged a 3% fee for each booking they receive. So say, if you set your price at £10, there would be a £0.30 fee and you would receive £9.70.
- For longer-term or rolling monthly bookings (over two months) 20% is deducted from your first month's payment. Beyond that, the fee reverts back to 3%.
How much should I charge to rent my driveway space?
Obviously, it's all about location with spaces near train and tube stations being most desirable as well as spaces next to amenities that charge for parking such as shopping centres and hospitals. Admittedly these websites do take a % of the money you earn but with JustPark claims that:
Large city garage spaces may rent for £150 per month and up, whereas suburban spots may rent for £50-100/month. Like every property rental decision, it is all about location, location, location.
Do I have to pay tax if I rent my garage or driveway?
There is no tax to pay on rental income from renting out your driveway or garage up to a point. Your rental income from a parking space is included in the property trading income allowance that was brought about by the government in April of 2017 and allows you to make up to £1,000 per year tax-free.
If your rental income from the parking space exceeds £1,000 in a tax year, you will either pay tax on the excess or calculate the profit after expenses.
Registering your driveway space couldn't be easier and there is no outlay so it is extra cash without much effort so it's worth investigating.
