A parking space lease agreement is a legally binding document that establishes the terms and conditions under which a parking space is rented. This agreement allows a landlord (or lessor) to lease a space for a defined period to a tenant (or lessee) who pays rent to use it exclusively for parking.
Typically used in urban areas where parking spaces are scarce and highly valuable, this contract includes essential details such as the rental period, payment terms, and specific usage guidelines.
Common Uses
- Residential Areas: Assigning spaces to residents in crowded areas with limited parking space.
- Business Purposes: Leasing spaces for employees, clients, and guests.
- Medical Facilities: Providing parking for patients and staff.
- Parking Garages: Renting out individual spaces.
- Events: Accommodating event attendees for sporting events, conventions, etc.
- Multiple Vehicle Ownership: There are not enough assigned parking spaces for a unit housing multiple car owners.
- Recreational Vehicle Storage: They have a recreational or another vehicle they wish to store for occasional use.
- Convenience Near Attractions: They wish to reserve a parking space near a beach, park, or other attraction.
Benefits of Using a Parking Space Lease Agreement
Parking space lease agreements allow property owners to take advantage of desirable real estate in areas where parking is at a premium, helping with:
- Additional Income: Generate extra revenue from unused parking spaces, whether in a lot or a single space.
- Control Over Usage: Ensure that the lessee uses the parking space appropriately.
- High-Demand Areas: For landlords in high-demand parking areas who want to charge tenants for a dedicated parking spot.
- Convenience for Tenants: Tenants in busy residential areas with limited parking or multiple vehicles can secure necessary parking spaces.
- Subletting Flexibility: Renters may have the option to sublet their parking space, depending on lease terms.
How to Lease a Parking Space
If you wish to lease a parking space, take the following steps:
- Advertise Your Available Parking Space: If you rent spaces to tenants in your building, this may be as simple as informing them of the cost of an extra parking space. If you are renting space in a private lot, driveway, or assigned street parking, you could advertise in the local paper online advertisement space.
- Vet Your Potential Tenants: You can conduct a credit or background check for creditworthiness and any criminal history that could affect their tenancy. You may also request references from previous landlords to determine whether the tenant is reliable and trustworthy and will pay rent on time.
- Review and Sign the Agreement: Analyze the lease agreement with the tenant. Be as detailed as possible about the location of the parking space, permitted uses, rent amount, payment terms, and lease violation penalties.
- Engage a Local Property Manager: While many tenants use the space as intended, some may use the space in a manner inconsistent with the lease terms. If you do not live nearby, you may benefit from signing a property management agreement with a local property manager who can monitor the space in your absence.
How to Write a Parking Space Lease Agreement
A parking space lease agreement is a legally binding document, so it is important to clearly outline all the terms before signing.
Fill in Lessor and Lessee Information
Indicate the name of the lessor, the owner of the parking space. Provide a mailing address and other contact information for payment and notice.
Include the name, address, and mailing address of the lessee. This identifies the person or entity renting the parking space who is responsible for the rent payment and other terms of the lease agreement.
Write Parking Space Location and Details
Provide identifying information about the parking space, including the street address, physical location, space number, and dimensions.
Add specific details about the vehicle or vehicles permitted by the lease agreement.
Specify Agreement Start Date and Length
Include the exact start date and end date for the lease. Alternatively, you can specify the lease term, whether it is for 30 days, three months, a year, or even month-to-month.
Your lease agreement can be for any period as long as it is consistent with state and local laws. Include any renewal options, if applicable.
Add Rental Amount and Payment Terms
Include rent payment details, such as the rent amount, payment frequency, due dates, any late fees, and accepted forms of payment.
You may accept cash, personal checks, electronic payments, cashier’s checks, money orders, or credit cards. To manage these payments effectively, ensure that the issued invoices clearly detail each transaction.
Include Parking Space Use Limitations
Specify clear parameters for parking space use, such as:
- Which vehicles may park in the space.
- Proper registration and insurance of vehicles.
- Prohibited vehicles.
- Proper maintenance of the space and prohibited activities.
- Immobile or broken vehicle removal requirements.
- Storage of items other than motor vehicles.
- Specify the exact number of parking spaces allotted to the tenant.
- Define the hours during which the tenant can use the parking spaces.
- Clarify if overnight parking is permitted.
- Indicate whether the spaces are shared with other tenants or exclusive to the tenant.
Establish Responsibilities and Liabilities
Outline the responsibilities of both parties to avoid any misunderstandings:
- Landlord’s Responsibilities: Typically include maintaining the parking area, ensuring security, and handling legal compliance.
- Tenant’s Responsibilities: Generally involve using the space appropriately, paying fees on time, and adhering to the terms of the lease.
- Liability for Damages: Specify that the landlord is not liable for damages to vehicles or items inside vehicles and that the tenant is responsible for any damage to the premises.
Add Termination Date or Notice Requirements
Some parking space lease agreements have an automatic termination date. For instance, a 30-day parking lease may automatically terminate 30 days from the date the agreement was established.
If your agreement does not include a set term (length of time), be sure to add a termination clause with a specific date or notice requirements. Define the conditions under which the lease can be terminated, including potential penalties or damages.
Include Contingencies
Prepare for potential changes or issues that might arise during the lease term:
- Changes in Parking Needs: Include provisions for adjusting the number of parking spaces if the tenant’s needs change.
- Dispute Resolution: Establish procedures for resolving disagreements, potentially including mediation or arbitration.
- Subletting and Events: State whether the tenant can sublet parking spaces or use them for events.
Define Lease Violation Terms
Outline penalties and remedies for a lease violation. Such terms may allow you to tow the lessee’s vehicle if they violate the terms of the lease agreement. You could also include terms for fines, penalties, and damages caused by the tenant.
Ensure Legal and Regulatory Compliance
Adhering to local laws and regulations helps avoid legal issues that could disrupt business operations:
- Zoning Laws: Understand and comply with zoning requirements and safety codes. It’s important to note that zoning is ultimately decided at the local level, so you will need to check with your local authorities before you create or sign a parking space agreement.
- ADA Compliance: Ensure that accessible parking spaces meet ADA standards.
- Permits and Licenses: Ensure all necessary permits and licenses are obtained for operating the parking facility.
- Local Ordinances: Be aware of any local ordinances that might affect parking availability or usage.
Provide Signature and Date
To make the lease agreement valid, the lessor and lessee must sign and date it. This can be done electronically or in person.
Parking Space Lease Agreement Sample
Related Documents
Garage (Parking) Rental Agreement
For renting a space that can be used for storage or for parking.
Alternative Templates
Use our Commercial Lease Agreement and Residential Lease Agreement to rent a commercial building or residential dwelling unit near or separate from your parking space for lease.
Frequently Asked Questions
Is it legal to lease a parking space?
Yes, it is legal to lease a parking space if you own the rights to it. However, your mortgage deed might limit your ability to lease the driveway, so check with your mortgage provider before you proceed.
If you own a parking space in the parking lot of a condo, you may be able to lease it if you have a deed or title to the space. You could also create a sublease agreement if you rent a designated parking spot, but only if permitted by your condo association, rental agreement, and local laws.
If you are not sure whether you can legally lease your parking space, it is best to speak with an attorney before you move forward with a parking space lease agreement.
Can the terms of the agreement be modified once it’s signed?
Yes, changes to the agreement are feasible if both parties agree and sign an amendment or addendum to the original agreement.
Can the agreement be terminated by the lessor before the end date?
Yes, the lessor has the right to terminate the agreement early if the lessee violates the terms, such as subleasing (if not agreed upon in the lease), storing unauthorized items, or engaging in illegal activities on the rental premises. However, the lessor must provide the lessee with prior notice and inform them of the potential consequences of their actions.
Can I tow a vehicle from my leased parking space?
Yes, you can tow a vehicle from your property. To ensure clarity and avoid disputes, it’s essential to include in your lease agreement the specific conditions under which a vehicle can be towed and specify who will be responsible for the towing expenses. In most jurisdictions, presenting the agreement to the towing company is sufficient to authorize the tow.
