Park an extra £1,500 in your pocket: here’s how
Some 3.5 million people rent out their driveway, according to research by Direct Line, with the average household making £1,090 a year.
But some driveway landlords earn even more.
According to the study, Sheffield is the most profitable city to rent out a driveway in – it can cost a motorist £160 a month or £1,924 a year to park their car. After fees from a parking agency, the landlord would earn £1,539 a year.
London is the next most profitable city for driveway landlords – they can pocket £1,525 after agency fees.
Leeds completes the top three, with driveways providing an annual income of £1,363.
Steve Barrett, head of car insurance at Direct Line, commented: “For homeowners, renting their driveway to others is a great way to supplement their income and for drivers. It’s a cheaper alternative to increasingly unaffordable town and city centre car parks.
“It also provides people with a guaranteed parking space and frees up vital spaces in high demand car parks.”
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If renting out your parking space could be up your street, Judy Niner, founder of Mondaytofriday.com, a website connecting people with free rooms and parking spaces to renters, offers the following tips:
Produce a written contract
This will include details on rent (the amount, how and when to pay) as well as terms and conditions of use (damages and notice period for cancelling the contract). The agreement should also cite that the landlord is not responsible for the vehicle or items inside the vehicle.
Local councils have tried to tell homeowners they will need a £385 planning application fee to rent out a space – which isn’t true.
Renting out one parking space without planning permission is within your rights, as long as it doesn’t prove to be a nuisance to neighbours. If you speak with them in advance you can ask if they have any requests or concerns.
Fill in a tax return
Income from renting out a driveway is taxable and therefore you will need to declare the earnings to HMRC. Phone or write to your tax office for further information and consider setting up a separate bank account to easily monitor how much you’re earning.
Don’t charge too much, or too little
Take a look at the prices to park elsewhere in the immediate competing area and charge a fair price. Remember to add in the cost of advertising when working out how much you want to make.
Meet with long-term tenants
If you’re agreeing to have a tenant on a long-term agreement it is best to meet with them to establish you can provide what they need. You should also consider asking for a deposit or the first month upfront – the deposit should be included in the written agreement.