Rent Out Your Parking

In the harsh economic climate,  landlords are looking to maximise income from their property assets, so called ‘sweating their property assets’.

One asset that landlords don’t always maximise or revenue is parking.

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How many landlords have a spare garage or additional parking space on a drive or in a car park that goes unused because it’s not needed by the tenant or you just haven’t got round to letting it?

Property Hawk has come across a service which could ‘boost’ landlord incomes for no additional work.

Parklet – letting agents for parking
Parklet was established in 2004 to act as a letting agent  for car spaces and garages.

It now has over 5,000 parking spaces advertised on its website at any one time, and has let over 2500 spaces to date.

What is my driveway worth?
Recent research by Parklet shows that the rental value of a parking space varies widely across the country.

Unsurprisingly spaces in London are the most valuable with a space in Mayfair commanding a wapping £313 per month or the equivalent of rent on a 1 bed flat in many parts of the country.  It does also highlight some interesting anomalies in the regions with those landlords in central Liverpool potentially sitting on a parking goldmine.  Spaces in Liverpool city centre start at £111 compared to only £63 in Reading.

How does it work?
Parklet is an agent, so a landlord will only have to pay them if they let their space or garage, and given that the payments come out of the rental amount a landlord does not incur any up front costs.

Who decides what the monthly rental income will be?
Parklets commission is a percentage of the rental income they achieve for their clients.  The advantage for a landlord is that they have an incentive to achieve the highest rents possible. However in all circumstances the landlord will be asked to agree to the final rental figure before any contract is made with a tenant.
   
How much commission does Park Let Ltd charge?
Charges to a landlord are 15% (+ VAT) of the gross monthly rental fee. Also for the first month only Parklet will charge an additional £25 (+ VAT) admin fee.
 
How do I cancel my contract?
Notice of cancellation must be given in writing to Parklet. Upon receipt of your notice, Parklet will reply advising of your cancellation date, being the last day the Tenant can use the space. The notice period required is detailed within the Lease Agreement.
 
What measures are in place to protect me?
The terms and conditions have been professionally constructed to protect their client. For example; a) The tenants contract states that he/she leaves their vehicle at their own risk (as per a normal car park), b) The tenant is held liable for any damage they may cause to your property c) Parklet ensure that the tenant signs that they hold a valid third party motor insurance certificate – so that they have the funds available in the unlikely event of (b).
 
What if as a one off, I need the space to be free e.g. taking delivery of large goods?

The landlord will have the tenant’s contact details for you to discuss your requirements with them directly. In most cases we find that the landlord simply offers to pay the local “Pay & Display” charges as an alternative for the day or two they require the space to be free.
 
What happens if the tenant doesn’t pay and continues to park in your space?
It is Park Let Ltd’s responsibility to collect the money from the tenant and pay the landlord. In the event of non-payment the tenant will be immediately issued with a cancellation notice with you the landlord being advised of the situation. If in the unlikely event that the tenant continues to park in your space this will be an illegal act and Parklet will assist you in taking further action i.e. notifying local police authorities, utilising local wheel clamp operators.

Tough times for landlords
In these tough times landlords should not be squandering a residual income such as rent from a parking space or garage.  It’s worth remembering that to achieve the same income from a deposit account achieved by renting a single space at £100 pcm a landlord would need a massive £100,000 in the bank at current interest rates.  It makes you think doesn’t it?

Visit Parklet to find out more

Post your comments on this article and other ways of landlords generating residual income.