Parking Lease Agreement Templates

Parking areas are becoming an increasingly important part of rental property. Whether you have an unused space you would like to rent out, or you’re looking for a fixed place to leave your car, it is always better to use a rental agreement to specify the conditions.

You can use our free parking space lease agreement template as a basis to create your own agreement. You can also try our step-by-step builder for a more personalized approach. In the guide below, we will discuss the advantages of this type of lease agreement and explain how to fill out the form.

What is a Parking Space Lease Agreement?

A parking space lease agreement is a document that regulates the relations between the owner who wants to lease a parking space, known as a “Lessor,” and the person who would like to rent it, known as a “Lessee.”

As a general rule, it is the lessor who sets out the terms of the lease: the duration, costs, how it should be paid for, and whether there is a deposit or not. However, if you find a good parking spot for your vehicle, you can prepare a document by yourself and offer it to the parking lot owner. Normally, a lease agreement runs for a month or a year, and in rare cases, it can be concluded on a daily or hourly basis.

Here are some definitions that may be useful to know:

  • “Lessor,” or “Landlord” — the owner or authorized caretaker of the rental parking space;
  • “Lessee,” or “Tenant” — a person who wants to rent the property for a certain period of time;
  • “Leased Premises,” or “Property” — the rental area (in this case, “Parking Area”).

Why Is It Advantageous To Use a Parking Space Lease Agreement?

A parking space lease agreement can come in handy in both big cities and small towns. However, these agreements are more common for crowded urban areas, where it is almost impossible to find a good parking spot. Whether you are looking for a parking lot or have an extra space ready for rent, a parking space rental agreement can be profitable in both of these cases.

Lessor’s Perspective

  • Renting your unused parking space can generate additional money. As mentioned above, such lease agreements are generally concluded for a long period of time, and long-term contracts can provide you with a stable income.
  • The agreement should include all the necessary information about applicable dates, vehicle condition and type allowed for parking on the premises, legal requirements, and the non-liability of the lessor. Consequently, the relations between you and the tenant are formalized, and there is no room for violations.
  • The agreement protects you against any unpleasant situations. Therefore, such a lease agreement will hold the lessee responsible for any harm on the premises.

Lessee’s Perspective

  • The agreement provides a fixed parking space or area and saves time finding a free parking lot to leave a car, especially in a crowded city.
  • You can define the duration of the rent as well as negotiate the price. However, long-term leases are cheaper than short-term ones, so you should consider all the options.
  • Signing such an agreement protects you when it comes to disputes or conflict situations. Moreover, you have the confidence that no one will take your parking place.

How to Lease a Parking Space

When you have an extra parking space, and you would like to rent it out, follow the steps below to cope with the process effectively.

1. Advertise

First, let people know that you have a parking space available for lease. Use different rental apps, websites, and social media. Describe your parking space with as much detail as possible, adding the location, costs, as well as high-quality pictures.

2. Filter the tenants

To avoid any unpleasant surprises, don’t forget to do a comprehensive background check to see whether your potential tenants have criminal records or are known for committing some rental violations. For this purpose, you can use a state’s official government website or seek assistance from services like Checkr, MyRental, or Zumper. Don’t hesitate to request a copy of the tenants’ bank statements to check the income and see if they have enough to pay rent.

3. Prepare the agreement

The next step is to set out the appropriate terms of the lease. You should consider the duration of the agreement and price of the rent, define how it should be paid for, identify the deposit amount, and indicate what kind of vehicles can be parked on the premises. These basic details should be identified before the lease begins. However, it is possible to change the agreement during the negotiations with a potential tenant.

4. Sign the agreement

After all the revisions are done, both parties must sign the agreement and notarize it, which gives the lessee permission to station the vehicle on the owner’s premises.

How to Find a Parking Space for Rent

If you are looking for a parking space and do not know where to start, here are several tasks you should face before securing a lease agreement.

1. Research

Research is a good way to find the most suitable area, for example, near your workplace or residential unit. Doing a little background check of the lessor will also help to make the right choice. You can get in touch with previous tenants, ask for recommendations, and read some reviews about potential leased premises.

2. Use rental apps

Use different rental apps to find parking spaces in your area. Such apps allow you to compare rental propositions and find a good correlation between location and price, for example:

  • Monkey Parking
  • BestParking
  • Pavemint
  • ParkMe
  • EVMatch (for e-vehicles)

3. Negotiate the terms of the agreement

Although the terms of the agreement are mostly prepared by the lessor, you could negotiate some of them and reach a compromise. In any case, make sure that the rental agreement includes all the details about lease requirements, how to access the rental space, and whether there will be parking lot attendants. After signing the agreement, you will get a green light to place your vehicle on the leased premises.

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Download your fillable Parking Lease Agreement template in PDF.

Filling out a Parking Space Lease Agreement

A parking space rental agreement is simpler than other rental lease agreements. The main steps to conclude the agreement are the following:

Step 1. Identify the parties

At the beginning of the document, the “Lessor,” who owns the parking space, and the “Lessee,” who would like to rent the property, must be identified.

Step 2. Fill in the Parking Area details

The agreement should contain all the details connected to the property for rent: address, name or description of the parking area, and whether there is one parking space or more.

Step 3. Describe the rental and financial details

It is necessary to describe all the information about the lease duration, type of lessee’s vehicle permitted for parking, security deposit amount, and rental costs.

Step 4. List the legal requirements

The agreement should contain legal requirements connected with the appropriate usage of the parking space, vehicle conditions, and the possibility and terms of towing the vehicle.

Step 5. Indicate your contact information

In the document, it is important to include the parties’ contact information, such as addresses, phone numbers, and emails. This information may be updated from time to time by written notice to the other party.

Step 6. Assign responsibilities

Although a parking space rental agreement is governed by state laws, it is crucial to note some parties’ responsibilities. They include the non-liability of the lessor for any damage or theft to any vehicle or the contents of the vehicle in the parking area and the liability of the lessee for holding the parking area harmless. The only object that should be contained on the leased premises is the lessee’s vehicle.

Frequently Asked Questions

Do I need permission to rent my property?

In some cases, you may have to warn your insurance company and make sure your insurance policy permits you to rent your parking space. You may also need to verify such a possibility with your mortgage company.


Is it possible to rent out a driveway?

Yes, in case you own the property. You need to specify the rules of the driveway rent, for example, during what time the lessee is allowed to use this parking space, or what kind of vehicles can be parked there, and warn about the possibility of towing the vehicle. However, if you rent the building, or if it’s a part of a homeowners organization, you may face some rental restrictions connected with a driveway space. Also, consider local regulations on this issue because renting out a driveway can be illegal (for example, in Portland, Oregon).


Can the lessor terminate the agreement before the end date?

Any violation can make the owner remove the lessee from the rental area. These violations include sublease, storage of bicycles, household items, furniture, tools, and other personal stuff, or using rental premises for illegal activities. But whatever the decision could be, the lessor has to notify the lessee and warn them about the consequences.


Published: Dec 4, 2020