Rental Property Investor · Sacramento, CA · Member since 2011 · 2k+ posts · 1k+ votes
Is anyone renting out their rental's driveway or side yard to someone who doesn't live in your rental? I'm looking for real stories of how parking space is converted into cash flow. What are the downsides to this? What are the opportunities?
That's a tough one. I am sure some landlord's probably open to this idea, however I personally would not do it because it may be inconvenient for my tenants.
The other question is; how do plan to handle issues that arise between your real tenants and the other renters?
I don't think the headache is worth it. Again, this is just a personal opinion.
My parents rent out 5 excess parking spaces at a duplex they own next to Eastern Washington University. It is a hassle because, if you are renting something you have to make sure it is available to your renter. Obviously, it only works where there is high demand - so you have to monitor for trespassing parkers.
In Washington State which is all I know about, parking lots have different rights than landlords. They can ticket and boot cars. Landlords can only tow. I imagine paid parking lots at least pay for their enforcement with tickets and impound fees.
Anyhow, for my rentals in the same area I charge a rent which takes into account the parking and then sometimes the tenants sublet a space if they have extra. I still have to monitor for trespass parkers, bit not as much.
Obviously, this is all dependent on return. I think my parents get $10 per month per spot (this is wheat field country... space isn't really at a premium.) If your spots could rent for $100 a month maybe it would be different. Also, I see you are in California. I bet you wouldn't have to plow snow off of your parking spaces four months out of the year!
Love the sublease option. It an example of how landlords can cash in on the quickly expanding peer-to-peer market. Allowing tenants to profit from the things they control is the right mindset for moving forward. There may be other opportunities for you to use this concept to grow your bottom line without giving away your time.