Many Australians are turning unused driveways and parking spots into extra income, earning up to $850 a month, particularly in areas like Sydney and Melbourne.
But before you rush to list your spot online, there are a few legal and practical hurdles you’ll want to clear. Let’s take a deep dive into the ins and outs of this increasingly popular side hustle.
Side hustles are having a moment in Australia. A recent Small Business Loans Australia survey revealed that nearly 40 per cent of us are keen to supplement our income with something on the side.
And why not? With the cost of living on the rise, every extra dollar helps. Renting out a car space seems like minimal effort, steady income, and no need to learn a new skill or invest in equipment.
Platforms like Parkhound and Spacer have made connecting car space owners with drivers desperate for a secure spot easier.
In some city centres, the demand is so high that people are willing to pay a premium, sometimes as much as $850 monthly for a single spot.
Even in less central locations, you could be looking at $300–$450 monthly for undercover or lock-up garage spaces, and $140–$300 for outdoor or driveway spots.
But is it legal?
Here’s where things get a little more complicated. The rules around renting out your car space depend on your living situation and the property type you own or rent.
If you own a house:
Generally, if you own a freestanding house with a driveway or garage, you can rent your car space as you see fit.
However, it’s always wise to check your local council regulations—some areas have restrictions on commercial use of residential properties, and you don’t want to be caught out.
If you own a unit, townhouse, or villa:
Strata properties are a different kettle of fish. According to strata lawyer Amanda Farmer, the first step is to confirm that you own the car space.
In many complexes, parking areas are considered ‘common property’, meaning you’ll need permission from the owners’ corporation to lease it.
Even if the space is in your title, strata bylaws may restrict how you use it. For example, some buildings limit the number of access fobs or swipe cards per unit for security reasons.
If you’re only allowed two fobs and both are in use, you can’t hand one over to a non-resident renting your spot. Strata committees are increasingly vigilant about these arrangements, often citing security as a reason to crack down.
If you’re a renter:
The rules are even stricter for the 2.9 million Australian households who rent. Most standard leases prohibit subletting any part of the property—including car spaces—without the landlord’s written consent.
Flouting this rule could land you in hot water, and it’s just not worth the risk. Also, strata bylaws still apply, so you must check those.
What’s your car space worth?
The value of a car space varies wildly depending on location, security, and demand. In the heart of Sydney or Melbourne, you might fetch $700–$850 a month for a secure, undercover spot.
In the suburbs, expect $100–$300. Outdoor or driveway spaces are generally less, but still nothing to sneeze at.
If you’re curious, check out platforms like Parkhound, Spacer, or even Facebook Marketplace to see what similar spaces are going for in your area.
For example, some listings in Sydney’s Mascot are as low as $35 a week (about $140 a month), while others in the central business district command top dollar.
Before you hand over the keys (or the fob), there are a few more things to think about:
- Insurance: If someone else is using your property, you could be liable for any damage to their car or injury they sustain. It’s a good idea to notify your insurer and check whether your policy covers this arrangement.
- Tax: Any income you earn from renting your car space is taxable. Keep detailed records of lease agreements and payments, and be prepared to declare this income at tax time.
- Legal advice: If you’re unsure about your rights or obligations, it’s always best to seek legal advice. A quick chat with a property lawyer or your strata manager could save you a lot of headaches down the track.
Have you tried renting out your car space, or are you considering it? What’s your experience been—smooth sailing or more trouble than it’s worth? Share your stories, tips, and questions in the comments below.
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