{"id":15666,"date":"2025-01-27T18:57:49","date_gmt":"2025-01-28T01:57:49","guid":{"rendered":"https:\/\/www.neighbor.com\/storage-blog\/?p=15666"},"modified":"2025-04-01T10:28:43","modified_gmt":"2025-04-01T17:28:43","slug":"how-to-monetize-vacant-parking-spaces","status":"publish","type":"post","link":"https:\/\/www.neighbor.com\/storage-blog\/how-to-monetize-vacant-parking-spaces\/","title":{"rendered":"Renting Parking Spaces: How to Generate Revenue from Unused\/Vacant Parking Spaces"},"content":{"rendered":"\n

Three people wrote in with questions about how to monetize their unused parking spaces. <\/strong> One was an apartment renter<\/strong> with an unused assigned parking space. Another was a small business owner.<\/strong> The last submission was written by a multifamily property owner <\/strong>experiencing high vacancies<\/a>.<\/p>\n\n\n\n

We answered all of those questions (and more!) below. <\/p>\n\n\n\n

Submission #1<\/strong>: <\/p>\n\n\n\n

Dear Neighbor,<\/em><\/p>\n\n\n\n

I just moved into an apartment complex and was assigned a parking space. The only thing is, I don’t own a vehicle (and neither does my roommate), so the space goes unused. As a renter, am I able to rent out this parking space to a non-resident, or would that be in violation of my lease? <\/em><\/p>\n\n\n\n

If this is allowed, how do I determine the going rate for a parking space in my city? I don’t want to overcharge (or undercharge) for parking. I’d also like to know the market rate so that I can make sure that the extra money is worth the hassle of finding a renter. If it’s going to take months to find someone who wants to rent it, and it’s only going to earn me an additional $50\/mo, then it may not be worth it.<\/em><\/p>\n\n\n\n

Thanks in advance for your help! <\/em><\/p>\n\n\n\n

Submission #2: <\/strong><\/p>\n\n\n\n

Dear Neighbor, <\/em><\/p>\n\n\n\n

I’m a small business owner and have been for the last 10 years. Recently, my restaurant experienced a decline in customers. As you might expect, this has hurt our profit margins. I’ve spent some time these last few months researching ways small businesses can generate passive income when business is slow. I just so happened to find your article. <\/em>What to Do When Business is Slow – 9 Key Strategies<\/em><\/a>. It had some really solid ideas.<\/em><\/p>\n\n\n\n

My favorite was renting out unused spaces to people in need of parking. We have about 20 parking spaces in our lot, 10 of which are consistently empty. How do I go about listing these spaces on Neighbor’s platform? <\/em><\/p>\n\n\n\n

As a small business owner, I’m looking for something with a low time commitment that will generate a decent amount of additional NOI. Is renting parking spaces a good option for me?<\/em><\/p>\n\n\n\n

Looking forward to hearing back! <\/em><\/p>\n\n\n\n

Submission #3: <\/strong><\/p>\n\n\n\n

Dear Neighbor, <\/em><\/p>\n\n\n\n

I’m the owner of a 20-unit multifamily building that’s currently in the lease-up process. <\/em>Vacancy rates<\/em><\/a> are high, and as a result, we have a surplus of empty parking spaces. We could really use the extra cash to offset the revenue we were expecting to generate from monthly rent costs. Plus, that extra space is going to waste right now. <\/em><\/p>\n\n\n\n

My question is: Is renting parking spots to non-residents a more lucrative strategy than building storage space?<\/em><\/p>\n\n\n\n

If so, how much can the average parking spot generate? Can I charge non-resident parkers more than I would charge? Most importantly, will non-residents be willing to park their vehicles at an apartment building over a standard parking garage? <\/em><\/p>\n\n\n\n

Our fear with renting unused spaces to non-residents is that we’ll limit the parking options available to our future residents. <\/em><\/p>\n\n\n\n

Thanks for your time! <\/em><\/p>\n\n\n\n

Answers to Our Readers’ Questions<\/h2>\n\n\n\n

Don’t worry. We have answers to all your questions, whether you’re a renter, small business owner, or multifamily owner. <\/p>\n\n\n\n

So, Can Anyone Rent Out Unused Parking Spaces? <\/h3>\n\n\n\n

Who can rent out unused parking spaces? Just about anybody. Here’s a quick breakdown of how you can get started: <\/p>\n\n\n\n

Apartment Renters <\/h3>\n\n\n\n

If you’re a renter with an assigned parking space in an apartment complex, you can rent out your space for money. Just be sure to check the terms of your lease to ensure you aren’t violating any regulations that could get you evicted. Policies will vary from one multifamily building to another. <\/strong>Note: Multifamily properties in the same neighborhood may have completely different policies regarding parking space rentals<\/em><\/strong>, <\/em>so do your research before securing a renter. <\/p>\n\n\n\n

As far as pricing, the going rates for parking spots at an apartment building will vary depending on the city (and whether the space is assigned or unassigned<\/a>, for example) <\/p>\n\n\n\n

Here’s a rundown of the average rates for both uncovered and covered resident parking spaces in 10 major US cities (Note: 240 multifamily properties were sampled in the research below). <\/p>\n\n\n\n

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Ultimately, we recommend that you reference hyperlocal parking data (specific to your city and your neighborhood). To do so, you can look through spaces listed on popular parking aggregators and calculate a rough market average. As a best practice, we recommend charging 50-70% of the market rate (aka the rate set by local parking operators) to maintain competitive pricing. For more information on recommended parking strategies, download the 2025 Multifamily Parking Intelligence Report here<\/a>. <\/p>\n\n\n\n

With pricing set, it’s time to list your space on Neighbor. The process is easy. Just follow the steps here<\/a>. <\/p>\n\n\n\n

Business Owners <\/h3>\n\n\n\n

Most business owners have parking lots with far more spaces than their employees need. To monetize these vacant spaces, you can rent them out to the public for extra money<\/a>. <\/p>\n\n\n\n

If your office building, retail space, restaurant, or car dealership is located near especially prime locations (near universities, concert venues, stadiums, major office complexes, etc.), you can charge a premium rate. <\/p>\n\n\n\n

Here’s a compilation of the market parking rates for 10 major U.S. cities. Again, to remain competitive, you’ll want to charge between 50-70% of the market rate. Note: It’s not advised that you base parking pricing off data that isn’t hyperlocal and specific to your exact city\/neighborhood. <\/em><\/p>\n\n\n\n

Fill out this form<\/a> for a free parking pricing consultation. <\/p>\n\n\n\n

Market Name <\/strong><\/td>Avg. Parking Rate (Per Month) <\/strong><\/td><\/tr>
Denver, CO <\/td>$111.44\/mo<\/td><\/tr>
Los Angeles, CA <\/td>$169.56\/mo<\/td><\/tr>
Miami, FL <\/td>$170.67\/mo<\/td><\/tr>
New York, NY <\/td>$247.06\/mo<\/td><\/tr>
Phoenix, AZ<\/td>$86.93\/mo<\/td><\/tr>
Salt Lake City, UT <\/td>$62.26\/mo<\/td><\/tr>
San Diego, CA <\/td>$169.64\/mo<\/td><\/tr>
San Francisco, CA <\/td>$176.15\/mo<\/td><\/tr>
Seattle, WA <\/td>$164.69\/mo<\/td><\/tr>
Washington, D.C. <\/td>$132.45\/mo<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Once pricing is in order, all that’s left to do is list your spaces on Neighbor.<\/a> Overall, the time commitment required to manage your parking space rentals is minimal. In most cases, all you’ll need to do is schedule a move-in time and answer renters’ questions as needed. <\/p>\n\n\n\n

If you decide to rent 10 parking spaces in total in the Denver, Colorado area, for example, you could generate an additional $1,114 per month (~$13,372 a year, assuming all 10 spaces remain occupied). <\/p>\n\n\n\n

Multifamily Owner <\/h3>\n\n\n\n

Depending on the mandated parking ratio in your area, it’s common to allocate between 1-2 parking spaces per unit\/tenant\/bedroom. Use the average parking ratios of these 10 major US cities as a reference: <\/p>\n\n\n\n

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In the case that the average # of vehicles per household exceeds the # of spaces allocated per unit, you may have some extra parking spots. To boost your monthly parking revenue, you can rent those vacant spaces to non-residents. It’s said that 40% of the largest multifamily REITs currently rent vacant parking spaces to non-residents. Learn more here<\/a>. <\/p>\n\n\n\n

In terms of the earnings you can expect, our research shows that multifamily owners are charging anywhere from $59 to $268 a month for covered parking ($20-$362 for uncovered parking). <\/p>\n\n\n\n

Assuming you have anywhere from 10 to 20 unused parking spaces, renting these spaces to non-residents could translate to tens of thousands of dollars in additional parking revenue, which can help offset other lease-up costs (e.g., marketing<\/a>). <\/p>\n\n\n\n

Homeowners <\/h3>\n\n\n\n

Renting parking space isn’t an opportunity reserved for commercial entities. Whether you own a home in the city, suburbs, or country, you can rent out parking spaces on your property<\/a>. You can use your driveway<\/a> or assigned street parking, as well as concrete pads or grassy areas on your property. Additionally, if you have a garage or shop with extra storage space, you can rent those out for parking as well. <\/p>\n\n\n\n

How Much Can I Make Renting Out My Parking Space? <\/h2>\n\n\n\n

How much money you can make renting out your parking space or spaces depends on several factors. Your location<\/strong> is the first one, as you can charge more for parking spaces if they’re in higher demand. <\/p>\n\n\n\n

Typically, this means that people in larger cities can charge more for their parking spots. In New York City, for instance, the average parking spot goes for around $570 per month. The national average, however, is closer to $200 per month. <\/p>\n\n\n\n

How to Rent Out Your Unused Spaces<\/h2>\n\n\n\n

Another factor that will determine how much you can make on your vacant parking spaces is how long you rent them out for.<\/strong> For instance, if you don’t like the idea of monthly rentals to a single tenant, you can rent out by the day or even the hour. <\/p>\n\n\n\n

Option #1: Renting by the Hour <\/h3>\n\n\n\n

Renting parking spaces by the hour is a good option if you live near a shopping district or event center. People attending sporting events, movies, plays, and other events don’t need parking for the entire month, let alone the entire day. <\/p>\n\n\n\n

With hourly parking, you can charge anywhere from $10 to $30 per hour<\/strong>, making it the most lucrative option. However, it will be difficult to keep track of all the turnover, and you may need to invest in a parking kiosk, which can be pricey. <\/p>\n\n\n\n

Option #2: Renting by the Day <\/h3>\n\n\n\n

If you don’t want to deal with the hassle of hourly parking, renting your spaces out by the day is a good alternative. As with hourly parking, you’ll have the most luck with daily parking rentals if you live in a busy part of town close to events. You can charge anywhere from $15 to $50 for a daily parking spot. <\/strong><\/p>\n\n\n\n

Option #3: Renting by the Month <\/h3>\n\n\n\n

The average person can make around $200 per month<\/strong> by renting out their parking space on a monthly basis. Once again, your location will largely determine how much you can charge, as parking is limited in larger cities. <\/p>\n\n\n\n

Considerations Before Renting Out Your Unused Spaces <\/h2>\n\n\n\n

If you like the idea of renting out one or more parking spaces, here are a few things to keep in mind: <\/p>\n\n\n\n

Payment Processing <\/h3>\n\n\n\n

There’s no point in renting out parking spaces for money if you don’t have a good way of getting paid. Therefore, offer established payment options, such as Venmo, Paypal, credit card, or cash only. <\/p>\n\n\n\n

When you list your parking spaces<\/a> on Neighbor, you won’t have to worry about processing payments independently. For more information on how Neighbor hosts receive their payouts, refer to this article<\/a>. (The best part is that Neigbhor offers guaranteed payments to hosts on the platform. So, you still get paid even if your renters miss their payments). <\/p>\n\n\n\n

Security <\/h3>\n\n\n\n

You also need to think about security measures, both for you and for your parking tenants. If you’re renting space on your residential property (garage, driveway, RV pad, etc.), installing cameras and flood lights will help with personal safety and help ward off any potential thieves. <\/p>\n\n\n\n

Not only will advanced security cameras help you maintain renter satisfaction, but you can also charge more for more secure parking spots. <\/p>\n\n\n\n

Check out this article for tips on choosing the best home security cameras<\/a>. <\/p>\n\n\n\n

Rules and Restrictions <\/h3>\n\n\n\n

While you want to make renting out your parking spaces as easy as possible, you also don’t want it to be a free-for-all. Therefore, it’s a good idea to have some rules and restrictions in place, such as: <\/p>\n\n\n\n