A parking space might fill a space in your finances!

As ever on this website, we are not looking at wholesale changes to your lifestyle. Instead, we are focusing on the little things (the small steps) which can make a huge difference over time. This week, we shall be looking at how making income, in addition to your principle salary, can help your long term financial health. Today, we’ll investigate whether you can make money from renting out a parking space.

Park and ride – all the way to the bank!

Following a recent article on moneystepper, you may have swapped your daily car commute to using the train. If this has allowed you to sell your car (the ultimate bad asset) then you may have a parking space at your residence which has been freed up?

Alternatively, you may just have a double drive-way with one side free. Or even better, a garage which you don’t use.

These areas, especially in city centres, are much more valuable than you may realize.

How much could I make?

Imagine you live in, or near to, central London. Parking spaces here are renting on rightmove from between £25 per week to £50 per week. Taking the middle ground of these figures, this amounts to £180 per month or £2,160 per year. Rented out over the course of 25 years, with earnings saved at the annual bank interest rate, we would have £123,637.

How can I rent out a parking space?

You have many options to do this:

List your “property” with an estate agent

Market your parking space in local newspapers or on general websites such as gumtree.com

Use specialized websites such as parkatmyhouse.com or parkingpanda.com

Find a parking space!

If you do absolutely need a car for your commute, these sites are also good to benefit from as a consumer. The rates charges tend to be significantly less than the inner-city alternatives, such as the NCP car parks. Looking at one example in King’s Cross, the NCP monthly fee is 50% more expensive that an alternative listed on gumtree which is literally next door!

Money earning tips

If you can free up land on your property for a parking space, you could make around £2,000 per year renting it out.

Signing up to specialized online sites will take the hassle out of finding “tenants”. However, be wary of the commission fees they charge and how this will eat into your profit.

Remember than any income on earned a parking space will also be liable to taxation in the UK.

Finally, this person coming onto your property will be a stranger. Ensure you have considered the possible safety impacts before leasing out the parking space.

Remember, this website discusses the very small steps which we can make with very little impact on our lives in the short term, but which have huge financial benefits over time.

For the bigger steps to a wealthier future, I would recommend that you read my book: “Becoming rich: one step at a time” available now.

Happy climbing one and all!