There are countless ways to earn money passively and renting your empty parking spot is one of them. There may be potential to convert the extra space in your garage or driveway to passive income if you are willing to rent out your parking space.
Can I make money renting my parking spot Rending your parking spot is actually serious business. Some people are making more than a couple of hundred dollars a month in this manner. According to Parkeasier.com, a space in Boston can be rented between 100$/month (Somerville) to 400$/month (Downtown).
However, the money you will actually make depends on location, and demand. For example, in Canada, the National public parking cost in 2012 averaged $241.72 according to Colliers International. Most peer-to-peer platforms list around 35% of the local cost. The cost of public parking is on the rise, and that is great news for peer-to-peer parking apps, and of course, yourself.
So, if you can spare a parking spot for someone willing to pay for it, then this might just be the ultimate passive income stream for you. But how do you get started? What does it take? The answers to all these important questions and more will be found right here. Below is what it takes to turn your parking spot, garage or even your driveway into a brilliant source of passive income.
Rent Your Parking Spot for Money [Guide]
If you have a parking spot you use in the mornings and in the evenings for example, you can still make money off it by renting it out from 9 to 5. So, if you drive to and from work every day, it means your parking space is empty for all those hours. And that’s an income opportunity you have been missing.
1. Make Sure You Can List Your Parking Spot Before Getting Started
It is probably very exciting to learn that you have been letting money slip between your fingers by having an empty parking space and no car to park in it. But before you post your listing, there are some things you should know.
For instance, can the parking space be used without the need for a permit? If that space was offered to you by your landlord or employer, are you allowed to rent it? Also, consider important factors like whether the parking space can be easily accessed without a key (ie. garage) and if that access might change as the renter uses it.
Also take note that you cannot rent public parking spaces and it may be illegal in some cities If you have any doubts, consult with your Town Hall and local legislators to ensure you can rent your parking space. Make sure to comply with local or national rules and regulations that may apply.
2. Find a Good Parking App or Parking Renting Site
You could take out a Craigslist ad – but that really isn’t the best solution. It could work, but a better idea is to use apps and sites that have already specialized in helping people like you make money off your parking spot. Joining a peer-to-peer parking spot rental apps is simple, and the process usually involves the following basic steps:
- Create an account
- Provide a description of your parking spot (more on that later)
- Explain the spot’s availability
- Publish your ad
From there, people in need of your spot will find it and pay for it. With some of these services, you will have to pay a monthly membership fee, but it’s usually worth it. Here are some reasons why – these companies:
- Understand the parking spot rental business better
- Know the best prices you should offer to attract clients
- Provide access to a large pool of potential clients
- Offer customer support services
- Handle some of the processes involved in renting the space on your behalf
- Help screen out non-serious users
- Provide easy payment processes
Here is a list of peer-to-peer parking companies around the globe. Note: You may have to do further research if they are not available in your area:
Once you choose the right platform for your needs, it will be time to write a description of your spot. Keep reading because we also provide more info and tips on this passive income source.
3. Write a Description of Your Parking Spot
Once you have chosen your platform and signed up, it’s time to let potential renters know what they are going to get when they rent your parking spot. Gather all the details about your spot so that people know more about it with regard to location and other matters. This will also give them greater confidence in the availability of your spot as you will seem to know all about it.
Essentially, you should be as accurate and as honest as possible about the space you are offering. You can say that the space is available certain days of the week or certain hours of the day. But good sites and apps will let you change the availability of your space as often as necessary. Parking spot renters like to read things like, easily accessible, no parallel parking required, clean spot, or in the shade.
Some renters get frustrated to find that the spot they wanted is already occupied when they get there. That is obviously bad for business. So make sure to keep your listing up to date.
4. Set the Price for Your Spot
Next, you will have to set a price for your parking lot. If you live in a big city where parking spots are in high demand, then you can set a higher price. But if you are deep in the suburbs, or out in the country, you will have to keep your prices low.
The location of your parking spot has a huge impact on the price you can get from your spot. In large cities like Boston for example, you can rent a space for up to 400$/month for a spot downtown in an area in high demand. While other sites recommend lowering your price by 35% compared to what your city charges for public parking.
You can set the right price by looking at what other parking space owners around you are charging. Additionally, many sites and apps that help you rent out your parking space are often willing to help you determine the best price for your spot so that you don’t set a price that is too high or too low and ruin your profit potential in the process. Trust the prices the platform suggests, even if you think it is low. They know the business well enough to make suggestions that will fill your spot and make you money.
5. Promote Your Parking Spot [Optional]
After you have listed your spot on the right sites, you can also promote it a little more. Certainly, the ad you list can organically bring in significant amounts of business. However, you can also share that ad on social media and other places to help promote your spot.
Additionally, you should respond to any messages you receive about your listing in a timely manner since the need for parking space could be quite urgent in some cases. Also, you should not forget to update the availability of your spot in case things change, such as when you have guests over.
How Passive is Renting Your Parking Spot?
There are many incredibly passive income streams out there, but renting a parking spot is probably more passive than most. You don’t have to create or build something to make passive income from this stream. You simply start with the spot you already have, and as long as you own it, it can continue to provide you fairly passive income. All you will have to do is update your listing from time to time.
Like renting a space in your home or renting advertising space on your car, renting your personal parking spot is not scalable. The reason being, you only have one, or two parking spots to rent. To be able to scale such a form of passive income, you would have to create a parking rental business and obtain multiple parking spots to rent out.
You can build this passive income stream from nothing as far as costs are involved. After all, it’s not like you have to build a parking spot that you can start renting. All that’s involved is letting the world know that you are willing to let people park their cars on your spot for a fee. The only fees you will pay are to the platform hosting your listing. And you will only pay if you are making money.
Renting a parking spot is not difficult at all. To begin with, all the resources are already in place and all you have to do is express your intention to rent your parking spot for money. After that, you just have to sit back and get paid as people in need of a place to park their cars pull into your driveway.
You can get started right now and start getting paid sooner than you think. In fact, if you find someone to rent your spot, you could get paid within a few days. So, as far as time goes, this passive income stream will save you lots of it.
Renting your parking spot is pretty risk-free. For instance, if the client’s car gets any sort of damage when in your parking spot, then odds are that insurance will cover it. Besides, just because someone has parked your car in your spot, it does not mean you are solely responsible for it. So, there is a very low risk with this kind of passive business. You just need to make sure that you comply with local rules and regulations when renting your spot, and that your description matches the actual place people will be parking in.
Seasons will not affect this side hustle. After all, people use their cars all the time, and they have to park them somewhere, even over the winter when roads become harder to navigate due to snow. If you live in a big city with high demand for parking, you can expect a nice flow of business all through the year as you rent out your parking spot.
ROI (Return on Investment)
The costs of getting into the passive income stream of renting out your parking spot is practically nonexistent since you had the parking space, but were not using it. No further investments will be necessary on your part. That also means that the revenues you get off your business will almost entirely be profits.
Here are some articles and related questions to peer-to-peer parking space rentals.
How Much can You Get Paid to Rent Your Parking Spot? According to Parkeasier.com, a space in Boston can be rented between 100$/month (Somerville) and 400$/month (Downtown). The money you make depends on location, and demand. For example, in Canada, public parking averaged $241.72 in 2012 according to Colliers International. Most peer-to-peer platforms list around 35% of the local cost.
How do I Rent my Parking Spot? 1. Make sure you can actually rent your spot. 2. Find the best peer-to-peer parking rental platform for you. 3. Create a listing 4. Communicate with your potential parking space renters. 5. Rent your space and receive passive income.