Parking Space Rental Agreement

A Parking space rental agreement is used by landlords or managers (lessor) of a specific parking space designated for vehicles to lease the space to another person or entity (lessee) for a specified amount and time.

Overview and purpose

Lack of parking space in most commercial and bigger cities is usually a troublesome element for most vehicle owners, prompting them to lease available parking spaces. Parking space can be rented out for a fixed term or on a month-to-month basis for an agreed-on amount that can sometimes be charged daily or hourly. A parking space rental agreement facilitates the leasing of the space by specifying the expectations, responsibilities, and liabilities. The lessor will customarily be the one to set forth what is to be included in the parking space rental agreement.

A parking space rental agreement permits only the parking of the lessee’s vehicle or motorcycle and not any other personal property. The lessor is not responsible for the upkeep of the parking space. 

A parking space rental agreement can be alternatively referred to as;

  • Car Parking Lease Agreement
  • Parking Lease/Rental Agreement
  • Rental Agreement for Parking Space
  • Parking Rental Agreement
  • Parking Space Lease form/Contract

Uses

The primary purpose of a parking space rental agreement, as already reaffirmed, is laying out the terms and conditions of renting out the parking space. Below are some applications of a parking space rental agreement that can be used to illustrate the uses of a parking space rental agreement.

  • Landlords with an unclaimed or extra parking space in commercial cities or business complexes can use a parking space rental agreement to rent the space.
  • Landlords use a parking space rental agreement to protect themselves from any damages that might happen to the vehicle while in their rented parking space.
  • A parking space rental agreement lays out the ground rules of leasing a parking space.
  • Property owners who allocate a single parking space for every household are encouraged to use a parking space rental agreement to allocate that extra parking space for tenants with more than one vehicle.

Tip: It is important to note that a parking space rental agreement can be filled out by either the lessor or the lessee, as long as they have agreed on everything and want to put it in writing.

Steps one can take to lease out a parking space are as follows;

  1. Advertise the vacancy of the space
  2. Vet the applicants
  3. Agree on terms
  4. Create and sign the parking space rental agreement

Lessee Defaults

Default on payment can happen when leasing parking spaces, just like with any type of lease. As a result, the lessee default should be anticipated and planned for. Very little or no laws are available to oversee the preparation and implementation of parking space rental agreements meaning the agreement might be the only chance the lessor has to protect themselves from defaulting lessees.

Reasons

Lessee default when it comes to a parking space rental agreement can be due to one of the following reasons.

Unpaid rent – Lessees can sometimes fail to make payments on time or at all. With parking space leasing, a resolution is usually straightforward. Lessors can opt for the lenient option of issuing the lessee a notice to take corrective actions or charge them a fine. Alternatively, lessors can call the towing company to have the vehicle removed from the premises.

Vehicle in bad condition – Lessees who fail to maintain their vehicle(s) in the condition stipulated in the parking space rental agreement are regarded as defaulting lessees. As the lessor, one should determine how to proceed. Issuance of a notice is a viable alternative, and so is having the vehicle towed. The outcomes of defaulting lessees are normally solely at the lessor’s discretion.

How to Write Parking Space Rental Agreement

A parking space rental agreement will commonly be simple and straightforward without ambiguous clauses. However, care and attention to detail must still be taken for once signed; it is legally binding and can be used in court in case of any disputes. Read through the procedural steps given below to see how the components of a parking space rental agreement should be organized to produce a decent and up to standard parking lease agreement.

Date

First and foremost, indicate the date when the agreement was created (typically known as the effective date of the agreement). The date must show the exact day, month, and year. This date might be different from the date when the agreement was signed; it is, however, advised it be the same date.

The parties

Afterward, identify the parties bound by the parking space rental agreement, that is, the lessor and the lessee.

Lessor’s details – A lessor is the individual or company owning and/or leasing out the parking space. Provide their official name and mailing address in the format of a street address, city, zip code, and state.

Lessee’s details – The lessee is the individual or the company renting the parking space. Indicate their name and mailing address in the format of street, city, zip code, and state. The lessee’s identity is important for getting access to the premises.

Tip: Mailing addresses are important for when either party wants to forward any official correspondence.

Parking space

Then, describe the parking space. Details one can use to define it are; the address, size, and directions of the parking space. The lessee should be made aware of the allocated slot. Any services that come as a package of the lease, for example, security and cleaning, should be outlined in the description.

Term and conditions

Once the parking space has been described, define how long the parking lease agreement is expected to last. The lease term is defined by;

Commencement date The commencement date is the date when the parking space the lease is expected to start. The lessor can begin using the space as of this date. Indicate the exact day, month, and year.

Termination –A parking space rental agreement, like all agreements, is bound to end. Termination can be through mutual agreement or at a specified date. Outline when the lease agreement can terminate and how termination should be carried out. For month-to-month leases, state how many days the lessee has to renew.

Parking rent

When writing down important rent information, the following aspects should be addressed.

Due date – Indicate the date of the month or week the lessee is expected to have made payments for the parking space. For example, the 5th of every month.

Amount – State the exact amount the lessee is expected to pay every month in order to continue using the parking space. The rent amount can be determined from local market rates.

Payment method

Then, indicate the preferred method of payment. The selected method of payment must be acceptable and convenient for both parties, although the lessor one will usually have higher leverage. Payments can be cash, account deposit, check, or any other.

Governing law

Signatures

Finally, the parking space rental agreement should be signed for it to be valid. Under the signatures section, the signatures of the lessor and the lessee should be provided accompanied by the date when each party signed. Once this is completed, the lease can begin as agreed.

Free Parking Space Rental Agreement Templates

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    Frequently Asked Questions

    Can I rent my parking space?

    Yes. However, one should ensure they get consent from their landlords. Other things to consider include income tax, mortgage, insurance, and possible liabilities. All in all, one can rent their unused or available parking space.

    Do parking space rental agreements have to be in writing?

    It is recommended that parking space rental agreements be in writing and signed if parties want a valid and legally binding rental agreement.

    Is a rental agreement legally binding?

    Yes. A signed parking space rental agreement is legally binding, and any breaching party is liable to legal ramifications.

    What happens if there is no parking space rental agreement?

    Renting parking space without using a rental agreement can facilitate disputes for parties that do not have clear obligations to the lease, and either can act as they see convenient. For example, lessees can fail to make payments are they are not legally obligated to.

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