Renting out driveways is on the rise
Homeowners could earn hundreds of pounds a year from their driveways
As any motorist knows, the cost of parking in your local town or city isn’t cheap, and free parking is getting harder to come by. If you work in or are visiting London, parking is extremely hard to secure, but getting the train doesn’t prove much cheaper either - and as we know - can be unreliable too!
So what’s the solution? Many motorists have been opting to source private parking solutions as an alternative to overpriced and oversubscribed public car parks. If you own a property with a driveway, you could be earning a pretty penny. By cashing in on a growing trend in the UK, homeowners have been earning thousands of pounds a year by renting out their driveways to drivers in need of a space.
If you have an unused driveway or parking space that could go to good use, then ask yourself this - how much is your parking space worth? In this article, we discuss how renting out your driveway could earn you extra income every year. Some may even say that your driveway is paved with gold!
Can you rent the parking space outside your property?
When it comes to renting out the driveway or parking space outside of your property, then you need to make sure you are okay to do so. Renting out your driveway is legal if you own the property yourself, or seek written permission from the landlord/property owner if you are renting the premises.
As long as you don’t require a resident’s permit to park in the space outside of your home, then it is all systems go! If you do require a permit from the council to park in the space outside your home, then unfortunately you aren’t permitted to rent the space out to a third party.
Rules for renting out your driveway
Even if you own a driveway or parking space to legally rent out to other drivers, there are still some rules and regulations to adhere to. For example:
- Homeowners must make sure by renting out their driveway or parking space that it doesn’t not create a nuisance to neighbours.
- If you own the property but share a driveway with another neighbour, you must make sure they are fully aware of your plans to rent your portion of the drive.
- Inform your home insurance company of your plans to rent out the drive, as this may affect your cover.
- Double-check your mortgage terms with the provider to ensure that there’s no grey area when it comes to renting your driveway or parking space.
- Remember that you may need to pay tax on the money you earn from renting out your driveway. Make sure you read up on the rules concerning income from land and property.
- Finally, you may want to put up a sign reiterating to renters that you are not liable for their vehicle or any items left inside (much like you’d find in a public car park).
We’d always recommend using a reputable company to rent out your driveway. Not only will this give you peace of mind when it comes to parking terms and conditions for drivers to follow, but opting for online parking marketplaces - such as YourParkingSpace and JustPark - means that they will promote the parking space for you to potentially millions of motorists in the UK.
Depending on the parking platform you use to advertise your driveway, there may be additional rules and regulations you’ll need to follow. Always check you are happy with what’s being proposed before signing on the dotted line.
How much should you charge to rent out your driveway per day?
How much you can charge someone to park on your driveway depends on key factors such as location, convenience, and period of rental. Driveway rental is usually charged at an hourly rate, which can be discounted depending on the amount of time it is needed. For example, on the YourParkingSpace website, drivers can park in London for anywhere from £1.75 an hour up to £30, depending on the desired location.
When choosing to work with a parking provider, they will inform you of the going rate in your area and recommend a mutually beneficial pricepoint for renting out your driveway. If you live in the cities of London, Brighton or Edinburgh, then you’re in luck! It turns out that these are the top three earning cities when it comes to renting a driveway.
How much money can you make from renting out a driveway?
According to MoneySavingExpert founder Martin Lewis, you can earn up to £200 a month depending on where you live. The most sought-after areas tend to be city centres, tourist destinations, and locations near to football stadiums.
Residents that live near to the Tottenham Hotspur ground in London, can earn an average of £26.93 an hour, whereas homeowners in Manchester near to Old Trafford can earn around £12.87 an hour by comparison.
Londoners are the biggest beneficiaries of driveway rentals, earning an average of £2,212 a year, followed by Brightonians who earn £2,059 from renting their driveways, and Edinburgh homeowners who pocket £1,941 annually from motorists who pay to park on privately owned drives.
Once you’ve set up an account, you’ll automatically earn commission from the parking websites promoting your driveway. Remember that the first £1,000 you earn is completely tax free, but any money earned following this is taxable - check with the HMRC to find out more.
How do you rent out your driveway?
Assuming you instruct a reputable online parking company in which to advertise your driveway, they will go through the step by step process with you in order to set up an active account. The most popular websites to rent your parking space through, are:
Market-leading car finance solutions
If you need a new car to get to your parking destination, then we can help. Here at Octane Finance, we provide market-leading car finance solutions to customers from across the UK. As an established broker, we have many years of experience working with the best lenders in the country to ensure you can get behind the wheel of your dream drive.
Whether you’ve got your eye on a hatchback, SUV, 4x4, supercar or classic model, we can match you with the finance to get your purchase across the finish line. To find out more, get in touch to speak with one of our finance experts about what we can do for you.