Here’s How Much You Can Earn by Renting Out Your Driveway

Parking, like everything else associated with car ownership, is expensive . If you live in a dense urban area like New York City, you could buy an apartment for several million dollars and still have to pay $300,000 or even $1 million for a parking space. And that’s if you can find a place to buy at all – otherwise you’ll have to pay a monthly fee or drive all night looking for street parking.

But herein lies the opportunity: if you have an empty parking space in the form of a private driveway or some registered space, you can make some money by renting that empty space outside (or under) your home.

How much can you make from renting a driveway or parking space?

Generally speaking, you can legally rent out any part of your property that you own, or even a property that you legally rent out, as long as your homeowners association (HOA), lease, or rental agreement does not prohibit it. There may be local zoning rules or other laws that prohibit renting out parking spaces, so you’ll need to check with your local government, but if you have the right to park your car somewhere, you’ll likely be able to rent that space.

And how much can you earn? This largely depends on classic market conditions of supply and demand, as well as your location. If you’re in a densely populated, parking-scarce area with expensive housing, parking spaces can be incredibly valuable. But if you’re in an area where people have a lot of parking, you’ll obviously earn less. The Spacer app, which allows you to list and rent parking spaces, estimates that most people will make around $200 per month renting driveways, although the range varies from $50 to $1,000 per month . Real-life example: Somerville, Massachusetts (near Boston) was making $220 a month for a parking space that the renter didn’t even own.

Obviously, even if you’re only getting $50 a month for space you don’t use, it’s essentially found money. And $200 a month is $2,400 a year—not exactly chump change.

Things to consider before renting out your driveway or parking space

Renting a parking space can be as simple as posting an ad on Craigslist or a similar site, or simply putting a sign in your driveway and making a simple arrangement with someone. There are also several apps that make this process easier, including the aforementioned Spacer , Neighbor , Parking for Me , and Curbflip . A few things to consider when choosing a marketplace to host your parking spaces:

• Rates. Different apps promise different average rates and earnings, but they are not guaranteed. You can usually set your own rate within broad parameters, so do a little research into what the market will bear. Keep in mind that a garage space with 24-hour access will always be cheaper than a curbside space that is only available during business hours or has other restrictions.
• Duty. Generally, you are responsible for everything that happens on your property, so if your renter’s car is damaged or stolen while it is parked at your place, you may be held liable. Make sure you understand what protection, if any, the service you use offers you; for example, Spacer carries general liability and property insurance for its users, which can cover unexpected damage. If the answer is “LOL, no,” or you rent on your own, make sure the rental agreement you use protects you.
• Payments. Most of these apps will process payments on your behalf, which is great, but they may also use different platforms to do this, such as Stripe. Before you get started, find out if you need to sign up for a separate service and link a bank account. You will also typically be responsible for any tax consequences due to the additional income, so be prepared for a little extra paperwork. at tax time.
• Planning. You don’t have to rent out parking 24 hours a day. You can rent it out for specific periods of time. For example, if you are driving to work, you can indicate that the driveway is available from 9:00 to 18:00 every weekday. Although this will reduce the number of potential tenants, for some it may be the ideal solution and you will get the best of both worlds: additional income without sacrificing your parking space.

If you have an empty parking space and could use some extra cash, renting it out is fairly easy, and depending on where you live, you could make a few hundred or even a few thousand dollars a year. If you’re looking for extra income, this is definitely worth looking into.