Money Saving Tips for UK Motorists

Driveway Rental – How to Earn Money from an Empty Parking Space

Driveway Rental – How to Earn Money from an Empty Parking Space

Renting out your driveway or garage could earn you up to £6,000 a year in extra cash, instead of just lying empty for half the day. Our detailed guide shows you how it’s done.

Costly car parks, restricted parking, traffic wardens, double yellow lines, bus lanes, general congestion. These are just some of the obstacles facing drivers searching for a convenient parking space.

Add the fact that the average car spends over 90% of its life parked up and it is hardly surprising that parking space is at a premium across Britain these days.

Yet, at the same time, millions of driveways lie empty for hours each day, every day.

What is to be done?

The sharing economy thinks it has the answer. A number of online firms have sprung up over the last few years that are tackling the problem by matching motorists looking for suitable parking with home owners looking to make easy money by renting out their parking space.


Disclaimer: This is an introductory guide and is not intended as a source of legal information, and only relates to the law as it stands in England. Please refer to the Warranty section of our Privacy Policy for more details.


Driveway Rental Basics


What is driveway rental?

The concept of driveway rental is quite simple, really.

You rent out parking space that you are under-utilising or not using at all to someone looking for guaranteed, secure parking for their vehicle, in return for cash.

The space can be your driveway, off-street parking space, garage or lock-up, or even just empty land. It doesn’t matter, as long as it’s yours to let and is suitable for parking.

The vast majority of customers are just everyday drivers looking for a safe and affordable spot to leave their car, but many caravan and boat owners, as well as small traders with commercial vehicles to park, are searching for space too.

And its not just about parking vehicles, either. Many property owners let their attics, basements, lock-ups, sheds, stock rooms, workshops and even built-in cupboards to those looking for a suitable storage facility for their goods.

It’s a win-win situation: tenants get space at a competitive price – often at half the going commercial rate – and landlords get money in their pocket for very little effort.
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Why would anyone want to rent my driveway or garage?

There are a variety of reasons why someone might want to rent your parking space, but here is a list of the most common scenarios:

  • Employees looking to park conveniently close to their workplace
  • Commuters who want to park near a tube, train or coach station
  • Spectators who need to park near to a concert, sports or entertainment venue
  • Travellers searching for a cheaper alternative to airport parking
  • Individuals or traders looking for a space for regular use or to store their wares
  • Car owners who want to avoid residents’ parking restrictions
  • Tourists looking for affordable and convenient parking near an attraction
  • Anyone looking for overnight parking whilst visiting a new area

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What are the pros and cons of parking space rental?

Here is a quick rundown of the main advantages and disadvantages of making money from your parking space:

+ Thousands are doing it, so you’re in good company

+ You can potentially make good money for little effort

+ No outlay or investment required before you start earning

+ You don’t necessarily need to be at home when the renter arrives

+ Helps relieve pressure on street parking in heavily congested areas

+ Rental periods are flexible, so you can rent out space when it suits you

+ The taxman allows you to earn up to £1,000 tax-free each year this way

+ Considered less intrusive and personal than letting a room or space inside your home

+ You are performing a useful public service by helping to meet the demand for parking

+ Flexible pricing means you can compete with commercial car parks and still turn a healthy profit

+ Rental firms’ mobile apps and platforms take the hassle out of dealing with customer reservations and queries


– Your parking space may not be suitable

– Any income over £1,000 will be taxable

– Possible home insurance and/or mortgage complications

– Rental spots in low-demand areas may not be very profitable

– Dealing with the taxman can be time consuming and bureaucratic

– If access is restricted, you may need to be available to give tenants entry

– You will be unable to use the space yourself while it is being used by a customer

– You need to regularly monitor bookings, and respond to communications and queries

– Some firms insist that landlords can’t use the space themselves at all during the rental period

– Several days or even several weeks notice may need to be given in order to suspend your advert
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How big is the driveway rental market?

It’s huge. Direct Line Car Insurance estimated that the driveway rental market was worth a staggering £3.8 billion in 2018 and that approximately 3.5 million people were registered with the various specialist rental sites in the UK, with another 4 million Brits considering letting their parking space in the future.

Little wonder, then, that some peer-to-peer parking companies report that the market has grown 50 fold in the last 5 years.
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How does it work?

The vast majority of people who let their driveways or garages use specialised services to help them find customers from near and far. These firms run websites or mobile apps that match together driveway landlords and tenants, and handle all the administrative and legal work, in return for a cut of the profits.

Major players include JustPark, Park On My Drive, Parklet and YourParkingSpace. For a full list of companies, please click on the following link:

Parking Space Rental Firms

However, if you are determined to maximise your profits and don’t mind doing the extra work, then the other option is to go down the DIY route and find renters yourself. You can do so by advertising locally, or by posting ads on popular classifieds sites like Gumtree and Craigslist, or through specialist listings sites like Spareground.

The biggest drawback of this approach is that you may not be able to reach as many people as you would if you chose to advertise via one of the matching sites, which are searchable by potential clients nationwide.


Driveway of a modern new home
(Image credit:

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How much money could I make?

Research carried out by Direct Line Car Insurance found that the average property owner made just under £1,100 in profit after taking into account agency fees. Not bad for simply renting out an empty space.


Regional breakdown of driveway parking fees


Average monthly fee

Average annual fee

Take home income

(after agency fee)

Average income


income provided

by renting space







































































































United Kingdom








However, the figures quoted above are averages and disguise the fact that there are wide variations in earnings. For instance, there are property owners in central London, where parking spaces sell for as much as £400,000, who are minting almost £600 a month by renting out parking spots. Even in smaller cities like Brighton it is possible to earn over £4,000 a year in some cases, according to a study conducted by JustPark.

Driveways in big cities like London, Manchester, Birmingham, Leeds and Glasgow are the most lucrative, with those in Sheffield topping Direct Line’s rankings. But it’s not just residents in congested cities who can cash-in. Parking spaces close to the following locations are also in high demand and can therefore be let at a premium:

  • Airports
  • Coach stations
  • Concert venues
  • Entertainment venues
  • Major roads
  • Ports
  • Restricted parking zones
  • Sporting venues
  • Stadiums
  • Tourist attractions
  • Town centres
  • Train stations

As an example, some lucky residents living near the All England Tennis Club in Wimbledon have been known to make over £1,500 from their driveways during the two week tournament. And landlords close to other such hot spots that are used year round also report a healthy revenue.
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Legal Considerations


Is it legal to rent out your driveway?

According to guidance given by the Ministry of Housing, Communities and Local Government, it is perfectly legal to let your parking space in England.

This is reinforced by the fact that the taxman even offers a tax break to homeowners who earn extra money by renting out their driveway or garage.

Up until 2013 the industry operated in a legal grey area, because some councils deemed driveway rental a commercial activity and therefore insisted that property owners apply for ‘change of use’ permission at a cost of £385. Those who didn’t comply were threatened with fines of up to £20,000.

The government, though, took a very different view, because it wanted to encourage the sharing economy and help peer-to-peer services grow, and so stepped in to clarify matters.

Eric Pickles, the Secretary of State for Local Government under the 2010-15 Conservative and Liberal Democrat coalition government, stated:

“Councils should be welcoming common sense ways that help hard-working people park easier and cheaply and for families to make some spare cash. Councils shouldn’t be interfering in an honest activity that causes no harm to others, unless there are serious concerns. Parking charges and fines are not a cash cow for town halls.

This government is standing up against the town hall parking bullies and over-zealous parking enforcement.”


The government then went on to update planning permission rules, making it clear that under normal circumstances no planning permission is required by the public to rent out a car parking space for a single car, as long as there is no public nuisance to neighbours, restrictions on the space being rented out, or other substantive concerns.

Unfortunately, some overzealous councils are still ignoring government guidance and challenging driveway landlords. If your local authority is one of them, then push back and even appeal if you have to.

In addition, get in touch with JustPark by emailing them at, because the rental company is gathering evidence against town hall parking bullies in order to lobby central government on landlords’ behalf.

If you wish to take a more conciliatory approach, or simply want to remove any element of doubt before starting your rental business, then it may be worth enquiring whether your Local Planning Authority will grant you a Certificate of Lawful Use. The application will cost money, though much less than planning permission, and if you are granted permission you will be able to operate unhindered.

The fact that, even today, some councils are flying in the face of government advice does make you wonder if they are more concerned with reducing competition against council car parking spaces and raising revenue than they are about protecting local residents or applying the letter of the law.
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Can I rent out the street space outside my property?

This is only possible if the space in question is private property. You cannot rent out a public parking space on the road outside your house.

Even if the space is private – off-street parking or in a gated community, for instance – you can only do so if you are legally entitled to and do not cause a nuisance or obstruction to other residents.
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Can I let someone else use my residents’ parking permit?

If it was issued by your local council then it is highly unlikely that you will be allowed to rent out your parking space to others. Most local authorities have strict rules about the use of residents’ parking permits and do not cater for micro-entrepreneurs keen to make money from the sharing economy.

The same restrictions normally apply to garage space leased from a local authority, as this excerpt from the website of the Royal Borough of Kingston Upon Thames illustrates:

“30. The tenant shall not assign the garage to another, or sublet the premises or any part of it. Upon the death of the tenant, the tenancy shall be ended.”


If, on the other hand, the parking permit has been issued by a private landlord, property management company or housing association, then you may be able to sublet the parking space, as long as you seek their permission first.
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What if I have a shared driveway?

Unless there are specific legal restrictions, the only thing stopping you from renting out a shared driveway is the agreement and co-operation of your neighbour. If you can both come to some kind of arrangement, then you have the green light to proceed.

The key is to be considerate and diplomatic towards your neighbour at all times, and ensure that they can still park their vehicle(s) without suffering any inconvenience or delay.

Things are much more complicated if the parking space in question is communal. The biggest obstacle is the fact that you will almost certainly need to secure permission from the property owner before you can proceed, and this may not be forthcoming unless you are prepared to share the profits with them.

Even if you do get permission scot-free, the hassle of negotiating with neighbours is likely to be a deal-breaker.
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What if I live in rented accommodation?

You should still be able to rent out your driveway if you live in a council house, especially if you have a secure tenancy. The best approach is to check your tenancy agreement or consult with the council, to be absolutely sure.

Borough residents who only lease garage space from their local authority aren’t usually allowed to sublet it.

If you receive benefits such as Universal Credit or Housing Benefit, it is worth checking to see if they will be impacted by any money you earn from your parking spot.

Visit the two websites below for basic guidance on local authority tenancy types and how property-rental income may affect any state benefits you receive: – Council Housing

Citizens Advice – Subletting

Unless the tenancy agreement clearly states that it is allowed, anyone living in privately rented accommodation will have to seek the permission of the owner before they can sublet the driveway or garage offered with the property.

Citizens Advice – What your landlord can do about subletting
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Do I need to declare rental income to the taxman?

Under new rules introduced by the government in April 2017, individuals can earn up to £1,000 of property-related income (e.g. renting out their driveway, garage, loft or garden space) totally tax-free and without having to declare it to the taxman.

Even if you stay below the £1,000 threshold, it is advisable to still keep an up-to-date record of your earnings, just in case the authorities come calling.

Any income above this allowance must be declared to HM Revenue & Customs, although the first £1,000 of your earnings still remain tax-free. HMRC may ask you to fill out a tax return form once you breach the limit.

One important thing to note is that you cannot deduct any expenses before claiming the property-related rental allowance.

Another is that this particular allowance is separate from the £7,500 p.a. you can earn tax-free under the government’s Rent A Room Scheme.


Close-up of tax buttons on a calculator
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Will I have to draw up a contract?

There are serious legal implications to renting out your driveway or garage, so a contract that clearly defines the agreement between you and the customer is a must. As HMG Law, a firm of solicitors, point out on their website:

“By authorising someone to park on your driveway or parking space you are granting that person a personal right to use the space, otherwise known as a license. It is important that you do not inadvertently create a tenancy as it is then much more difficult to bring the arrangement to an end.”


If you take bookings through a reputable reservations website, then the you won’t have to worry about legal considerations too much, because the company will handle all contractual agreements on your behalf automatically.

On the other hand, if you choose to go it alone, then you will need to draw up a suitable contract, and ensure that every tenant who rents your parking spot signs it beforehand and is aware of your terms and conditions.

You can download a sample contract for free here:

Park On My Drive

Alternatively, you can generate a customised parking space rental agreement for a modest fee using either of these two legal websites:

Wonder Legal United Kingdom


Clickdocks, a website specialising in the sale of affordable legal templates, markets a pre-made parking space agreement that is suitable for use in Scotland, England and Wales.
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Do I need insurance?

It’s not unknown for tenants to reverse into the odd dustbin on the driveway, or worse.

Usually, tenants are liable for any damage they cause to your property, therefore you don’t need to arrange specialist insurance. To give you added peace of mind, some matching companies even check that tenants have third party motor insurance, so any mishaps are covered.

Many matching driveway rental services also hold a secure deposit during the rental period to cover damages, lost keys or other access equipment, and missed rental payments. Check if yours is one of them when signing-up.

Conversely, a customer parks on your property at their own risk, and you are not normally responsible for any damage to their vehicle under the terms and conditions issued by firms as standard, unless the damage is deliberate, of course.

If the worst comes to the worst, however, you may be able to claim for any damage through your home insurance, particularly if you have third party cover, but only if you’ve informed the provider beforehand about your rental activity and they have confirmed that it doesn’t invalidate your policy.

It is even more important that you alert your home insurer if you are giving a customer the key to your garage, especially if it is possible to gain entry to your house from the garage.

Similarly, if you are forced to park your own car elsewhere when customers arrive, then be sure to let your car insurance company know, even though this might bump up your premium.
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Will my mortgage be affected?

It’s always a good idea to advise your lender that you are renting out your driveway or garage, and to get their permission to do so, otherwise you may be in breach of the conditions laid out in the mortgage agreement.
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What if someone just parks without paying?

You would think that if a stranger was cheeky enough to just roll up and park in your space without permission, the law would be on your side and that the police or local authority would rush to assist you.

Bizarrely, that is not the case!

A vehicle parked in this way is technically on private property, which councils have no jurisdiction over, limiting their ability to get involved. The police, for their part, may view it as a civil, not a criminal, offence and give it low priority, especially if the vehicle is taxed, insured and MOT’d, and hasn’t been abandoned.

If this scenario does happen to you, your only hope may be to take legal action.

More importantly, if you feel particularly vulnerable to this threat, and to avoid the situation arising in the first place, consider installing a collapsible bollard in your driveway.

This article discusses the legal loophole in greater detail:

Strangers can park their car on your driveway and there’s nothing you can do about it

For detailed guidance on parking legally, visit the following link:

The Highway Code – Waiting and Parking
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Practical Considerations


How long can I rent my driveway out for?

Most driveway rental websites allow you to select from hourly, daily, weekly or monthly options. However, some sites, like Parklet, specialise in long-tern rentals, so only allow reservations that are a minimum of one month long.

Landlords can normally specify a minimum fixed term they will accept a booking for.
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Can I rent out more than one parking space?

According to government guidance it is perfectly legal to rent out a single parking space without planning permission and that doing so does not constitute a ‘change of use’ of your premises.

Start letting multiple spaces, however, and you run the risk that your council really will consider it a ‘change of use’ of your property and challenge you accordingly, particularly if your activity causes a nuisance or if neighbours complain.

As an example, one woman living in central London was threatened with a £20,000 fine by Westminster City Council for breaking planning regulations after neighbours complained about the disturbance caused by customers using her three parking spaces.

To be safe, it is probably best to check with your local authority before you proceed, rather than be challenged by them later on.

It may also be worth investigating if your Local Planning Authority will grant you a Certificate of Lawful Use to cover you rental activity.
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What benefits do the matching sites provide?

Nearly all the established driveway rental websites provide the following services to property owners who list with them:

  • Allocate a profile page
  • Answer basic queries
  • Process payments
  • Handle bookings
  • Maintain the booking platform
  • Deal with contracts
  • Collect feedback and ratings

Listings websites like Gumtree, Craigslist or Spareground do not offer these services, as they are purely online advertising boards. However, they are an ideal tool for attracting business if you don’t mind handling the whole negotiating and booking process yourself.
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Do rental websites charge to list parking space?

The vast majority of driveway rental websites let you list your space for free. They make their money either by taking a cut of any profit you make on bookings or by charging a membership fee.
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How much commission do driveway rental sites charge?

The commission rate you pay varies depending on which driveway rental website you use and whether the booking is short-term or long-term. The firm’s cut can be as low as 3% or as high as 25%, though 20% seems to be the most common figure; any VAT or administrative charges that are due are normally added on top.

Some companies, like YourParkingSpace and Storemates, do things slightly differently in that they charge the tenants commission on each reservation made, rather than the property owners.

Park On My Drive is one of the major exceptions to the commission model. It prefers to charge landlords a flat annual membership fee, instead of taking a share of the profits, and even this bill isn’t collected until the first booking request has been made.

Generally speaking, classifieds websites like Gumtree and Craigslist only charge for ads if they appear in specific sections of their site, or if you want to place an enhanced ad, otherwise they are free to post in.
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What is the difference between static and dynamic pricing?

Here is how the two main pricing models used by the various matching websites differ:

Static Pricing – the driveway landlord sets a price and it remains fixed until s/he chooses to change it

Dynamic Pricing – the property owner selects a price, but this is automatically adjusted up or down by the matching service according to demand, in order to maximise the the owner’s revenue

Most peer-to-peer driveway rental sites follow the static model, but some, such as YourParkingSpace, offer both static and dynamic pricing options when you list your space with them.
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How do I sign-up with a driveway rental service?

There are numerous internet matching services out there that you can use, but nearly all of them have pretty much the same registration procedure:


Decide Availability

First, you need to decide the availability of your parking space. Landlords usually have three options:

Instant – tenants can park up as soon as they’ve paid; minimal notification given, so landlords must keep the space free at all times and cannot use it themselves

Bookable – tenants contact landlords ahead of time to reserve the space; landlords can use the space freely when it is not booked

Selected – the space is only available at specific times or dates, e.g. while the landlord is on holiday or at work

When deciding on availability, it is also worth noting that demand for spaces near train stations or workplaces is highest during weekdays, while demand for parking near concert or entertainment venues usually peaks during evenings and weekends.


Set a Price

Use the website you are joining to research what other property owners in your area are charging and use that as a guide when setting your own rate. Some matching sites, like Parklet for example, offer a price guide tool to help you set a price:

Parklet – Price Guide Tool


Enter your Details

You’ll be asked to enter your personal information and details about the parking space. The quality of your advert has a big influence on the how much business you attract, so make sure it ticks all the following boxes:

Detailed – contains plenty of information about the space and its features (e.g. CCTV, distance from station, gated), along with details of any restrictions or special conditions

Formatted – the text is properly formatted and easily readable (bullet points always a great help in this regard)

Photos – customers want to see what they are booking, so both a close-up and a wide shot of the space are a must; if Google Streetview can be added, then do so

Privacy – do not put personal or identifying details in the advert; the exact address is normally only revealed when a booking is confirmed


Choose your Payment Method

Select your preferred method of payment, which is usually either via PayPal or bank transfer.


Monitor your Account

Once you’ve registered, all you need to do is monitor your profile for any communications. Any money earned from reservations is normally automatically paid into your account monthly or weekly, depending on the company’s policy.
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Can I sign up with more than one rental service at the same time?

Of course you can. In fact, it is highly recommended that you do just that if you want to maximise your revenue, because customers don’t always sign up to multiple sites, or they may just stick to one they like or trust.

By advertising on different sites you are casting your net much wider than landlords who don’t, thereby boosting your chances of securing a reservation.

Furthermore, nearly all the well known matching services let property owners list their parking space for free, so you are not losing anything by registering with a few of them in one go.
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Do I still get paid for no-shows and late arrivals/departures?

Once a booking has been confirmed your payment is usually guaranteed, so it shouldn’t matter if a tenant arrives late or fails to show up at all.

Tenants who overstay are usually obliged to pay for the extra time, but always confirm the policy when signing-up with a space rental company.

If there is a serious problem and payment is at risk, then the driveway firm will normally step-in to resolve the matter. Many matching services also insist tenants pay a deposit, to cover missed rental payments.
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What if I want to operate a commercial car park?

If you have a large space that is suitable for use as a car park, own a commercial property such as a hotel or pub that has underused parking, or have acquired a designated car park that you want to run on a commercial basis, then you should consider using the services of a professional car park management company to help you.

JustPark, YourParkingSpace and Parklet all offer professional management services to varying degrees. There are also dedicated firms like the aptly named Car Park Management or Horizon Parking that you can turn to.

Among the benefits they offer are:

  • Cashless or mobile payment solutions
  • Automatic number plate recognition
  • Data-driven yield management
  • Digital marketing know-how
  • End-to-end site management
  • Online reporting software
  • Parking enforcement
  • Intelligent parking
  • Booking software
  • Car park design
  • Permit parking
  • Real time data

The British Parking Association, a non-profit organisation, representing the industry in the UK, is a good source of information and guidance on the subject.


Interior of an ultra-modern car park tower
(Image credit: Bilderandi at

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Useful Tips


Is there any etiquette involved?

The government is fine with you renting out a single space, as long as you are not causing a nuisance to your neighbours or breaking parking rules in any way.

It is therefore vitally important that you and your tenants behave considerately at all times. The last thing you want is the local authority or, worse, the police challenging you, because you or your customers have annoyed neighbouring residents.

Here are a few basic pointers to help you maintain good relations with both renters and neighbours:

  • Give customers clear and accurate post-booking instructions/directions
  • Make sure any access equipment or codes are provided on time
  • Respond to customer calls, texts and emails promptly
  • Make sure you move your own vehicle in good time
  • Keep your calendar and profile page up-to-date
  • Ensure your parking space is free of any clutter
  • Keep noise levels to a minimum when parking
  • Don’t block or obstruct other residents
  • Park legally at all times

For detailed guidance on parking legally, visit the following link:

The Highway Code – Waiting and Parking
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How can I boost my rental income?

Here are some top tips to help you stay ahead of the competition and increase your earnings:

  • Ensure that your advert contains accurate, up-to-date and detailed information
  • Make sure that your advert is clear, well formatted and readable
  • Include quality photos of your parking/storage space
  • Add Google Streetview to your advert if you can
  • Always give your customers clear instructions and directions
  • Offer additional services, e.g. airport pick-up, vehicle charging or car wash
  • Try to offer instant bookings if you can, to attract custom
  • Keep your calendar up-to-date, especially when away
  • Garner as many (good) customer reviews as you can
  • Try to be as flexible as possible on availability
  • Make sure you keep your rates competitive
  • Try dynamic pricing, if it is available

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List of Driveway Rental Firms



Below is a list of the biggest and best known driveway rental services in the UK along with their main competitors.


Major Companies

JustPark – the market-leader with 2.5 million registered drivers and 45,000 space owners

Park On My Drive – landlords simply pay an annual registration fee, not commission

Parklet – an ideal choice for long-term lets of a month or more

YourParkingSpace – charges tenants commission, not the landlords



Confused – powered by YourParkingSpace on behalf of the comparison site

Parking Space Rentals – offers three tiers of service at different prices

ShareMyStorage – social marketplace for garages, attics, commercial storage, etc

Stashbee – specialises in long-term storage space as well as parking spots

Storemates – list your driveway, garage, shed, basement, stock room, cupboard, etc

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Gumtree – just search for ‘parking to rent’ to view the numerous listings

Craigslist – covers major towns and cities nationwide, and even further afield

Spareground – free to list site specialising in property, and parking and storage space rental


Review Websites

Several of the driveway rental specialists listed above have been rated and reviewed by landlords and tenants alike on the two sites mentioned below.

So, to discover how a particular matching service stacks up against the competition, just click on the links:

Review Centre



Mobile Apps

JustPark – App Creator, Android, iOS

YourParkingSpace – App Creator, Android, iOS
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Few of us pay much attention to our driveway or garage day-to-day, yet they are a potentially lucrative source of extra income if rented out.

The customer demand is certainly there, the government says it is perfectly legal to let your parking space and even allows you to earn the first £1,000 tax-free, and it costs next to nothing to get started, so there is little downside to trying it.

You can maximise your profits by finding customers yourself, but it is far easier to use one of the specialist rental companies to find them for you. These online matching services not only give you access to their sophisticated booking systems and national database of tenants, but also handle tasks such as administration, drafting of contracts and payment collection on your behalf.

As long as you have the legal right to do so, and you have informed your mortgage provider or landlord, and insurers too, then there really is no reason why you can’t dive into the social sharing bonanza that is parking space rental and grab a share of the profits as well.


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