A (garage) parking rental agreement is an agreement between a property owner who controls an area of space designated for a vehicle (parking space) and a vehicle owner allowed to rent it in return for payment.
This type of agreement is commonly used in a condominium building in urban areas where parking spots may be scarce or if someone has two or more parking spaces that they are not using and would like to rent out.
Alternative names for the parking space lease agreement:
- Parking space lease agreement
- Parking rental agreement
- Garage rental lease agreement
- Parking space lease form
Understanding Parking Lease Agreement
Before drafting a parking (garage) lease agreement, there are various things that one should consider, such as; when to use it, why one should use it, and who is eligible to use the parking lease agreement. Below is a breakdown of these three essential items:
Why it is used?
Leasing commercial parking spaces can be lucrative, especially in most urban areas where parking spaces are usually limited. All businesses have their ups and downs, and as such, one should be prepared when venturing into leasing out parking spaces. One great tool that one should equip themselves with is a lease agreement that will help establish the terms of use of the parking space and define the consequences of breaching such rules.
The lease agreement will help set clear everything that the lessee needs to know when agreeing to lease, such as the size of the parking space, the vehicles permitted to park, etc.
When it is used?
Renting a parking space is advantageous to the owner of the parking space and the renter. For instance, in urban areas where parking spaces are often limited, the renter can be assured of a parking space by signing an agreement with the owner of the parking space for a set amount of time, usually one month during which they will be entitled to use the parking space without any interference. Or, if one has an apartment building or a rental property that they would like to rent out separately, they can also use the parking space lease agreement to establish the terms of their agreement.
The garage (parking) space lease agreement can be used in situations when;
- In case an individual wants to lease parking space to others as a lessor
- In case an individual wants to rent a property owner (lessor)’s property for a personal parking spot
Typically, these cases may include an individual working in the city and looking for a parking area near their workplace and commercial tenants looking to lessee it to an office or other business.
Parking Lease Agreement Elements
A garage (parking) lease agreement defines the relationship between two parties. For the relationship to be established, however, there is critical information that must be included in the lease agreement, such as:
Contact information:
The contact information to be included includes the name, address, and phone numbers of both the lessor and the lessee
Parking space allocation:
The document should include details about the parking space, i.e., where it is located (the stall number and main address) and the GPS information. The garage (parking) lease agreement should also include any other vital details about the parking space that the lessee should know about, such as instructions on opening the gates and needing unique vital cards to access the parking space.
Terms and conditions:
The parking (garage) space lease agreement should highlight the terms and conditions of the use of the parking space. The terms and conditions to include in the document may include information on whether the lessee is allowed to sublease the parking space, which is permitted entry into the parking space, which type of vehicle is allowed, the condition of the vehicle while accessing the parking space, i.e., no oil spillage and fumes and conditions stating that the lessee is not allowed to sleep in the vehicle while parked at the parking space and no overnight parking. Other conditions to consider include; vehicle registration and insurance covers.
Term
The term of the lease agreement is the agreed duration in which the lessee can use the parking space. The lease agreement should detail how long the lease is for, i.e., the start and end date. The lease should also highlight whether the lease is subject to renewal and how such renewals may be effected.
Rent
The rent amount and the frequency of payments, i.e., daily, weekly, monthly, yearly, etc. The agreement should also include provisions for late fees and grace periods for when defaults should be remedied.
Security deposit
In addition to the rent payment, the parking (garage) lease agreement should also outline whether or not the lessee will be required to pay a security deposit to secure the parking space.
Vehicle description
Different parking spots, especially in urban areas and business complexes, have different rules on which vehicles can use such parking slots. If different vehicles are allowed to park in the slot being leased, placards/dashboards should be provided to show that they have been approved to do so.
Liability
The liability provision outlines the type of security provided and those the parking space owner is not liable for, such as items stolen from the vehicle, accidents, or damages in the parking lot.
Termination
Like any other lease agreement, a parking space lease agreement should include a provision for how the agreement can be terminated. Usually, termination of the lease agreement is propelled by non-payment, breach of the agreement, or mutual agreement to terminate. All these factors should be taken into consideration when creating the termination clause.
Arrangements for keys and access:
If the lessee must have a key/gate pass to access the property, such arrangements should be defined in the agreement, i.e., when, where, and how the access will be granted.
Free Templates
Discover a range of meticulously crafted Free Garage (Parking) Rental Agreement Templates along with a standard one, meticulously designed to outline the terms and conditions of your parking rental, safeguarding both the renter and the property owner while ensuring a seamless and transparent rental experience.
Renting Garage Violations
Upon renting the garage, it is possible for the tenant to make certain violations that may render the agreement null and void. Examples include:
- Subletting the space to a third party without notifying the property owner
- Using the space leased for any other purpose than parking your car
- Engaging in illegal activities like spying or illicit trades
- Obstructing other users of the garage
- Extending your stay without notifying the property owner well in advance
Following are the steps to vacate the tenant in case of violation :
Notify the tenant
First and foremost, notify the tenant. Tell him why you have deemed it necessary to evict him before the expiration of the lease period. For the sake of fairness, you might have to give him an opportunity to respond to those accusations.
Issue an ultimatum
Now issue an ultimatum to the tenant. This is basically the timeline within which the tenant has to vacate your premises. Make it plain to you that the failure to adhere to the timeline may mean forceful eviction or law enforcement.
Bring in the law enforcement
In case the tenant does not willingly vacate the premise within the stipulated timeframe, you now have the leeway to invoke the law enforcement. Report the matter to the relevant law enforcement agency like the police, rent control tribunal, or housing department.
Frequently Asked Questions
No, This agreement is subservient to and hence governed by the rules that are contained in the rental lease agreement. As such, any disputes will usually be sorted out under the framework spelled out by the former agreement. In the case of the need for forceful evictions though, the law enforcers will usually have to be brought in.
In some states, one may be required to have a permit to rent out a parking space, while in others, that is not the case. Before renting the parking space, it is essential to check with the state laws governing the lease of parking spaces.
In large cities, parking spaces may rent for $150 per month and up, while in most suburban parking spaces, the rent may be $50-100 per month. However, like every property rental decision, the location of the parking lot is what determines the amount to charge.
If the vehicle is parked on a residential property, it can be towed immediately. This means that if a vehicle is blocking a driveway, one can call the tow company and remove it immediately.
Yes, you can rent out your driveway if you own the property. If you have an unused car parking space, driveway, or garage, you can opt to rent it out. Just make sure to use a parking space lease agreement and follow your state’s provision on leasing parking spaces. However, if you are renting or are a part of the homeowners association, there may be rules against leasing out the driveway.
About This Article
