Can I rent my parking space?

If you live close to a train station or in the middle of the city and have space to park an extra car, you could generate thousands of dollars annually, according to the peer-to-peer platform Parkhound.

Table of Contents Show

Where to start
Pricing, costs and requirements
Don't forget your tax
When does a tenant have exclusive use of a parking space under a lease or licence that is unavailable for use by anyone else?
When is a tenant’s parking an unleased space?
Can I rent out my parking space Toronto?
How much can you rent a parking space for Toronto?
How does Parkhound make money?
What are the three types of parking spaces?

Users also benefit: they can secure affordable, accessible long-term parking, often in high-demand areas.

Parkhound has over 40,000 spots nationally from a variety of peer-to-peer spaces and car park operators. Since 2015 members, also called hosts, have earned more than $20 million collectively.

Where to start

Parkhound, a subsidiary of Spacer, is an online marketplace for storage and parking.

It connects drivers who want convenient parking with local property owners who have an extra space, such as a garage, carport, driveway or allocated space.

Pricing, costs and requirements

It's free to list with Parkhound on its website and app, which is available on iTunes, and the platform claims some of its hosts make as much as $3600 a year. Parkhound takes a 10% cut.

Users (motorists) pay an 18% commission - a service fee, including GST, that covers the platform and customer support service, according to Parkhound.

The value of your parking space depends on several factors. Location, availability and the type of space - for example, whether it's a local garage or a undercover parking in the CBD. During the sign-up process, Parkhound recommends a price based on the going rate in the area where the space is located.

It also recommends hosts check the price is lower than local on-street and off-street parking. Ultimately, Parkhound is a free market, so hosts can charge as much as a motorist is willing to pay.

When hosts are listing, Parkhound recommends they ensure all information about the garage or space is as accurate as possible.

Most drivers are looking for long-term parking, usually for six to 12 months. That said, some hosts are making money from short-term leases through month-to-month arrangements.

Parkhound says spaces can be leased for a few hours, a whole week or 24/7 - it doesn't matter.

According to the legal team at Parkhound, it is up to hosts to determine the legality of using the service in their area, which may include contacting the local council or consulting applicable bylaws.

It's also essential you don't overlook insurance. Mitchell Sweeney, from IAG-backed ShareCover, warns:

"Listing an item or service on the marketplace economy is a great way to make some extra cash for you and your family. [However] to ensure you and your assets are protected, we recommend you research what insurance cover is required to protect you from the unexpected risks - like theft, accidental damage, or liability. Traditional policies such as home and contents may exclude items listed on the marketplace economy."

Parkhound does have public liability insurance and, in the event of damage, a spokesperson for the platform says it is always available to help.

Don't forget your tax

If you rent out a space through apps such as Parkhound, Spacer or Carparkit, the money you receive is assessable income. This means you must declare the income in your tax return, and you can claim deductions for associated expenses.

Moreover, you may also need to pay CGT when you sell the parking space, or the property attached to the additional space, according to the tax office.

When does a tenant have exclusive use of a parking space under a lease or licence that is unavailable for use by anyone else?

A parking space is considered to be a tenant’s parking space, if a tenant has exclusive use of the parking space and the spaces cannot be leased to anyone apart from a tenant.
If a space is available for use by anyone apart from a tenant of the premises, the exemption will not be available for that space.
The Chief Commissioner will consider the terms of any agreement or arrangement as to the use of a parking space in determining whether it is a tenant’s parking space and, in particular, will consider if:

the space is set aside for exclusive use by the tenant
the space cannot be leased to anyone else other than a tenant at the premises
the rights conferred under any lease or licence

When is a tenant’s parking an unleased space?

A parking space is considered to be an unleased space if it is not leased or let out to any tenant for any period during the year.
The exemption for an unleased tenant’s parking space is calculated on a daily basis. Accordingly, an owner wishing to claim an exemption for unleased parking space must keep the following records for each day for which they wish to claim an exemption:

the total number of tenant’s parking spaces
the total number of unleased tenant’s parking spaces
the total number of days the parking spaces were unleased
occupancy/vacancy details from Property Manager
evidence that attempts have been made to have the property leased (either privately or through a real estate agent)
previous lease/licence agreements.

The records must be retained for a minimum of 5 years from the date an exemption is claimed in a return lodged with the Chief Commissioner.

Can I rent out my parking space Toronto?

In Toronto, if you live in a condo and legally own your spot, the city will allow you to sell or rent the space to fellow residents in the same building. This limitation is designed to prevent strangers from entering the condo building's parking area and make sure that future owners have a place to park.

How much can you rent a parking space for Toronto?

Monthly Parking Rates in Toronto Currently the parking rates in Toronto range between $50 and $375 per month. Review available parking options below and book a spot that works best for your budget.

How does Parkhound make money?

Parkhound takes a small fee from Drivers for each successful transaction. - Start Earning Quickly - Parkhound is the largest parking marketplace in Australia. On average, Hosts receive a booking within 10 days of signing up.

What are the three types of parking spaces?

For most motorised vehicles, there are three commonly used arrangements of parking spaces—parallel parking, perpendicular parking, and angle parking. These are self-park configurations where the vehicle driver is able to access the parking independently.