Make a sideline income renting out your driveway

Nick Daws gives practical tips on how to earn extra money renting out your driveway as a parking spot.

With the cost of living steadily rising, many homeowners are looking for creative ways to generate extra income. One such opportunity is renting out your driveway. 

If you have a parking space or driveway that sits empty most of the day, turning it into a source of passive income is easier than you might think. Here’s how you can get started and make the most from this opportunity.

Why rent out your driveway?

The demand for parking spaces in busy cities and towns across the UK is huge. Many areas suffer from a lack of available (and affordable) parking, leading commuters, tourists and even local residents to search for alternatives. Renting out your driveway can help fill this gap while putting extra money in your pocket.

How much can you earn?

The amount you can earn by renting out your driveway varies based on location, demand and the availability of alternative parking options. In central London, for example, you could earn between £150 and £400 per month. In other cities and suburban areas the earnings might be lower but still substantial enough to make it worth your while.

So how do you get started?

Various apps and online platforms make it easy to list and rent out your driveway. These platforms provide a user-friendly interface, allowing you to manage bookings and payments efficiently. 

In this article I will focus on JustPark, one of the most popular and widely used parking platforms. But there are several others – listed later – that are well worth checking out too. 

How does JustPark work?

Through their website and mobile app, JustPark puts drivers in touch with home-owners and businesses who have parking spaces (and/or EV charging facilities) available near their destination. They say they help over 13 million drivers a year find parking spaces at over 45,000 UK locations.

Listing your space is free and you can set your own price based on how long the driver wishes to stay. JustPark will suggest an appropriate price based on your location and the facilities you are offering, but you aren’t obliged to accept this.

JustPark charges space-owners (or hosts as they call them) a 3% fee on bookings (so if you charge £10 they will take 30p, meaning you receive £9.70). They also make money from drivers, adding up to 25% of the host’s asking price to the fee charged. They say, however, that charges to drivers are still typically 30% lower than ad hoc street parking (if you can find it), which makes the service attractive to drivers too.

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A big attraction of JustPark is that they handle all the admin on your behalf. All payments are made via the site, and hosts can withdraw earnings via PayPal or direct to their bank account. JustPark also ensures hosts still get paid even if the booker doesn’t turn up.

The money you earn from renting out your parking space is covered by the tax-free trading allowance, so you can make up to £1,000 per year completely free of  tax (and no need to declare it to the taxman). According to the JustPark website, hosts have made a total of over £50 million since the platform first started. Their top hosts earn over £4,000 a year. 

All drivers using the service have to register, so you know exactly who will be using your space on any given day. There is also a rating system so you can see any comments other users of the service have made about them. Hosts are also rated by drivers, incidentally.

You can offer spaces by the day, week or month, and set any restrictions you wish on when your space is available. Anyone is welcome to advertise spaces on JustPark, but the locations in most demand are those near airports, stations and stadiums, and in major cities. 

Other options

As mentioned, JustPark isn’t the only platform offering this service. Here are a few others to check out:

Parklet – Similar to JustPark, Parklet allows homeowners to rent out their parking spaces. It offers flexible payment options, including monthly rentals, which can attract long-term renters.

Your Parking Space – YourParkingSpace caters to both short-term and long-term parking needs, making it ideal for different types of renters. The platform handles all the logistics, including payment processing.

Kerb – Kerb is a parking app that allows homeowners to rent out their driveway to commuters, event-goers, and more. It has a global reach, making it useful for those living near airports or other major transport hubs.

Top tips

To maximize your earnings and attract more renters, consider the following tips:

• Create clear and detailed listings – include high-quality photos and precise descriptions of your space.
• Offer competitive pricing – research similar listings in your area to set a competitive rate.
• Maximize availability – the more available your parking space, the higher your chances of securing renters.
• Communicate well – respond promptly and courteously to booking requests and enquiries.
• Prioritize safety and security – ensure your driveway is well maintained and well lit at night. 
• Avoid confusion or misunderstandings – provide clear instructions for renters.
• Offer EV charging facilities – with EVs growing in popularity, this can be a great selling point for your space. And of course, you can charge more too.

Closing thoughts

I hope this article has opened your eyes to the money-making potential of renting out your driveway. 

Obviously in recent years the pandemic and working from home reduced demand for parking. But with life returning to normal now, demand for parking spaces is steadily increasing again. If you are lucky enough to have a driveway or other parking space you could rent out, why not start making money from it today?

• Of course, if you don’t have a suitable space to offer, you won’t be able to benefit from this opportunity. You could still use JustPark and similar platforms to save money on your own parking costs, though. Either way, these services are well worth checking out.

As always, if you have any comments to share about this article, please do leave them below.Nick Daws writes for Pounds and Sense, a UK personal finance blog aimed especially (though not exclusively) at over-fifties.

Photo credits: Pexels