Parking space is a hot commodity in many high-density residential and commercial areas.
Whether you own one parking space or a whole parking lot, you can use a Parking Space Lease Agreement to rent this valuable property to people who need it.
What Is a Parking Space Lease Agreement?
The terms of a parking space agreement may differ depending on the number of parking spaces and location.
There are many different types of parking spaces that you may lease if you are the documented owner or renter of the space. You can lease a parking space in your house’s driveway or a titled parking spot for your condominium.
If you are a renter, you may have the option to sublet your parking space, depending on your lease agreement terms.
Some states and cities have laws and regulations that govern parking space leases for on-street parking and even private lots.
You can easily run afoul of zoning ordinances and safety codes, so be sure to review local regulations before you create or sign a parking space agreement.
When Do You Use 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.
Someone might enter into a parking space lease agreement if:
- They live in a crowded residential area with limited parking space.
- They work in a busy area where parking is hard to find.
- There are not enough assigned parking spaces for a unit housing multiple car owners.
- They have a recreational or another vehicle they wish to store for occasional use.
- They wish to reserve a parking space near a beach, park, or other attraction.
By renting a parking space you own to specific individuals, you can control who uses your space and earn income simultaneously.
How To Lease a Parking Space
Leasing a parking spot is very similar to leasing a residential property, but with fewer complications.
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, trustworthy, and will pay rent on time.
Review and Sign the Parking Space Lease Agreement
Review the parking space 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.
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.
What to Include in 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 including:
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.
Lessor and Lessee Information
Clearly indicate the name of the lessor, the owner of the parking space. A mailing address and other contact information should be provided for payment and notice.
Include the name, address, and mailing address of the lessee. This identifies the person or entity renting the parking space and responsible for the rent payment and other terms of the parking space lease agreement.
Parking Space Location and Details
Provide identifying information about the parking space, including the street address, physical location, space number, and dimensions.
Parking Space Use Limitations
Include clear parameters for parking space use including:
- 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
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 include a termination clause with a specific date or notice requirements.
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.
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.
State and Local Laws as Applicable
Depending on the state or city of your parking space, certain laws or statutes may apply to your parking space lease agreement.
Include this information in your agreement as well.
Signature and Date
The lessor and lessee must sign and date the lease agreement to be valid.
You can do this electronically or in person.
How To Write a Parking Space Lease Agreement
A lease agreement for a parking space provides both the lessor and the lessee with critical legal parameters and clear expectations for the duration of the lease.
To ensure that your lease contains all the necessary information, you can do the following:
Step 1 – Obtain Parking Space Lease Agreement
Start with a parking space lease agreement template from Legal Templates
Step 2 – Customize Your Agreement
Don’t include any information that does not apply to your parking agreement
Step 3 – Fill in Lessor and Lessee Details
Enter the lessor and lessee’s name, address, and other contact information
Step 4 – Write Address
Add the address, location, and other identifying details about the leased parking space
Step 5 – Identify Vehicles
Add specific details about the vehicle or vehicles permitted by the lease agreement
Step 6 – Fill in Lease Dates
Enter the start date, end date, and term of the lease agreement
Step 7 – Write Lease Terms
Enter the rent amount, due date, payment method and terms
Step 8 – Check Local Laws
Review the lease agreement for compliance with local and state laws
Step 9 – Sign Agreement
Have the lessor and lessee sign and date the agreement
Parking Space Lease Agreement Sample
Below is an example of what a parking space lease agreement looks like.
Frequently Asked Questions
Is it illegal to lease a parking space?
If you own a parking space in your driveway or garage, you own the rights to that space. However, your mortgage deed could limit your ability to lease the driveway. 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 the space 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.
If you own a parking space in your driveway or garage, you own the rights to that space. However, your mortgage deed could limit your ability to lease the driveway. 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 the space 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.