In modern times, there are more and more people struggling with financial problems and paying the bills has never been a more pressing matter. But a lot of us are literally sitting on a potential goldmine. Renting out your driveway could be a viable way to make an additional income and you’d have to do very little.
If you have been considering renting out your parking space then there could be some serious money waiting to be earned. In some parts of the country, London being a great example, you could charge as much as £200 a month. Having checked our sources, even in less populated places, homeowners could stand to make an additional £50 per month by renting out a single space in their driveway.
If you have a larger driveway that can comfortably fit more than one car, you can double, triple or even quadruple those earnings accordingly. If these figures aren’t enough to convince you then perhaps the ease of renting out a driveway will be enough to change your mind. Let’s take a look at what you’ll need to do and some of the things you will need to consider.
Is It Worth Renting Out My Driveway?
As we have mentioned, you could earn up to, even in excess of £200 per month renting out your driveway in some areas. While big cities and driveways that are within walking distance to airports and train stations tend to make the most, any driveway can stand to make money.
Before you get started, we would advise thinking about your home’s location so that you can get a good idea of what you might earn. It’s no good entering into this believing you will be raking in £800 per month for those four parking spaces if you live on top of a mountain.
You will also need to keep in mind that you must ONLY rent out privately owned parking spaces. These can be on a driveway or any other piece of land but you must not try to rent out a residents parking permit or a space outside your home that doesn’t belong to you. This is illegal and could land you with some serious fines, which would quickly erase any profit you had made.
When you ask whether it is worth renting out your driveway, one of the first things you will probably wonder is whether there will be a fee for doing so. The good news is that renting your parking space doesn’t typically come with any attached fees for advertising. Most of the online listings are free to advertise on so you’ve got nothing to lose, even if nobody snaps up your offer.
However, you should consider that, when you successfully rent out your parking space, the website may take a cut of the profit. It’s worth looking at this before committing as some of them charge more than others.
Driveway Renting Apps
In modern times, everything seems to have a compatible app and renting out your driveway is no different. If you want the ease and convenience of being able to handle all your driveway rental issues on the go then the JustPark app is one of the best.
As we have already mentioned, there will be a commission fee when you rent out your space. For a month’s worth of bookings you would pay 20% commission but this drops to just 3% when your bookings exceed two months.
One of the greatest things about using these parking space rental apps is that you don’t need to worry about anything. The company will take care of the legalities and contracts as well as transferring your earnings to you (sometimes with a fee for withdrawing less than a certain amount) so you don’t have to worry about a thing.
What If I Don’t Want To Pay To Rent Out My Driveway?
If you don’t like the idea of sharing your profit with a go-between company then there are other ways. One of the most popular ways to advertise anything these days is on social media, with Facebook Marketplace being one of the fastest growing classified libraries on the planet.
This is a great way to put yourself in touch with local and national renters. However, the downside is that you are solely responsible for obtaining payments, managing the rentals and dealing with any problems. For the most part, you’ll probably deal with honest and trustworthy people who simply want somewhere safe to park their vehicle. But there is a risk of meeting someone who might cause problems and with no middle man or contracts in place, you could lose out on money.
Things To Consider When Renting Out Your Driveway
With how quick and easy it is to list your driveway for rental on one of the many platforms, there isn’t too much that you will need to think about, but there are a few things.
Before we get into some of the more practical aspects of what to consider when renting your driveway, it is important to think about your social obligations. If you share a driveway with a neighbour, then it is clear that you will need to obtain their permission. They may also expect a cut of the earnings, so be sure to discuss this with them.
Even if you don’t share a driveway, it is common decency to let your close neighbours know that you will be renting your space. This will allow them to feel more comfortable knowing that new people will be around the property.
Will I Need To Pay Tax?
Whether you need to pay tax or not when renting your driveway will depend on how much you earn. According to our sources, you will not need to inform HMRC or pay any tax if you earn no more than £1000 annually by renting out private property, which includes a driveway. This income does not need to be added on to any other taxable income for the year, for example, the wages you earn from your main job.
Making Your Driveway Stand Out From The Crowd
If you’ve never looked into it before, you may be surprised by the number of driveways that are on offer out there for rent. This means that you need to do something pretty special to ensure that you attract renters.
As we have mentioned, the location of your driveway is incredibly important and those that are near transport links and city centres will always take favour over those that aren’t. However, building up a good reputation on driveway rental sites will boost your credibility and bring in more tenants.
In many instances, you may not even see the person renting your driveway. But if you do have any contact with them, keep in mind that you are providing a service and that the friendlier and more approachable you are, the more likely you are to get excellent reviews and star ratings. You must also make sure that you provide clear instructions on the location of your driveway and give as many details as possible to make the tenant’s experience easy and pain-free.
In addition to providing amazing service, you must think about setting a competitive price. Of course, you are going to want to make as much profit as possible but that doesn’t always happen by charging the highest price. Check out what other people in your area are asking and consider offering a slightly lower fee. While you won’t make as much per rental, you’ll likely take favour over other local driveways, resulting in more bookings.
Keep Your Driveway In Good Condition
You wouldn’t pay for anything shoddy so you shouldn’t expect your tenants to either. If you are considering renting out your driveway, you should make sure that it is in the best possible condition. If it isn’t, then take the time to give it a spruce up.
In some cases, you might think about giving it an entire makeover but this can be a considerable investment and the cost might outweigh the potential profit. That said, installing a brand spanking new driveway will boost the value of your property so you’ll win in one way or another.
At the very least, you should ensure that the driveway is even and free from obstructions that could damage a renter’s vehicle as well as making it aesthetically pleasing.
If you’re in the market to make a little extra cash then renting out your driveway is a great way to do this. Getting started is as simple as joining one of the many parking space rental websites or apps which do much of the hard work for you. Of course, this usually comes with a fee but advertising is generally free so you haven’t got anything to lose in trying.