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.
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:
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.
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.
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.
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.
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:
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.
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.
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.
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).
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.