Renting out an investment property is a terrific way to make consistent extra money, but what if the property you’re renting is nothing more than a patch of asphalt? Renting out a parking place might be a low-maintenance way to earn a steady second income if you’re a property owner with an additional spot. Whether you have room in your driveway or your apartment comes with a parking spot that you don’t use. Depending on your residence and the kind of space you have available, you could earn several thousand dollars every year by renting parking in Melbourne.
However, before selling your space to the highest bidder, some facts must be considered. What is the maximum amount you can charge for parking? Should you use a third-party service to advertise the location or go alone?
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Suppose you have an empty parking place and aren’t sure how to locate a tenant. In that case, several companies, similar to Parkingmadeeasy, match vacant parking spots with eager renters. Most of these platforms have a similar business model: they make it easier to publish and advertise your open location and manage payments. They cut from the revenue you generate from renting the space in exchange.
Because of the commission fees, some people may be tempted to rent out their space by posting it on a free website like Craigslist or Facebook or by handing out fliers around the neighbourhood.
How Much Can You Earn If You Rent Out a Parking Spot?
Location is the most important consideration when determining how much to charge. Depending on its location, size, and specifics, they’ll probably advise you how much it should rent if you rent out your space through a third-party platform. Do some market research if you’re listing a space on your own.
The type of location you have will also influence the price you can charge. d According to Spacer, renting out an empty driveway may bring in $200 per month, while renting out an inside space like a garage could cost $300 per month. Lighting, an electric charging station, proper security, and CCTV cameras may cost renters more.
How To Rent a Parking Spot In a Responsible Manner
Make sure you’re being responsible before renting out a parking place. If you’re a renter with a parking place that came with your rental apartment, check with your landlord to see if renting it out is against your lease.
If you decide to list your parking for rent on a third-party platform, read the terms and conditions carefully to understand what you agree to. Ensure you know how much of your rent you’ll be paying in commission and what safeguards and perks the business provides.
You’ll have to draught your contract with the renter if you’re not using a third-party site and are going it alone. Set the specifications carefully, including the start and end dates of the rental period, the payment day of the month, and any other terms.