When looking at investing in buy-to-let properties, landlords mainly consider the rental income from tenants. One asset in many properties is the car parking space, which can be rented out to car owners who are not tenants.
Car parking space can used by tenants, but if they do not own a car, the landlords can rent out garage or outdoor parking space to other car owners for extra income. Homes near city centres are ideal for long-term rentals, while parking spaces near airports are valuable for short term parking.
This rental process is made easy by websites run by car parking agencies such as JustPark, ParkLet and YourParkingSpace, which arrange booking for parking spaces. Drivers book and pay for parking sites directly and the landlord receives the rental income minus the site commission, which is usually around 15%. The agencies set the rates, but these can be high because the more that the drivers pay, the more the agency receives. Rentals can be either short-term or long-term.
The agencies take care of the legal aspects, making sure that drivers are insured and the parking tenant is liable for any damage. The rental agreement for tenants living in the property needs to exclude access to the garage and the need to keep any outside parking space clear.
Renting parking space may not be a major source of income, but it could be a welcome contribution to a landlord’s commercial mortgage repayments.