1.8m Made By New Driveway Landlords during Recession

Property owners in the UK have been cashing in on renting out their driveways, garages and allocated parking spaces during the recession according to Park Let, the UKs largest parking space letting agent.
The company calculated that landlords who signed up during the recession*, have in total collected 1,791,000 in rental income. That is the equivalent of 649 extra income for each space let. On average the company arranges approximately 300 contracts per month with the average monthly rental income for these recession-savvy landlords being 120.21 but rising considerably in larger towns and cities or where there is serious pressure on the parking infrastructure.

Londoners were the most prolific driveway landlords with nearly twenty times more people in the capital letting their driveway, garage or allocated parking space compared to people in Manchester the next most profitable city. Many property owners in Leeds, Birmingham and Nottingham also saw the benefit of earning additional income this way. Particularly notable was the number of landlords who signed up along the A12 corridor in Essex: Romford, Shenfield, Chelmsford and Colchester all saw a big uplift in the number of contracts arranged since April last year.

Luke Kelly, managing director, Park Let commented: Increasing numbers of people are now aware of the option to let their parking space but I think the recession has been a very effective driving force in compelling them to actually sign up. What is great about this business is that once a landlord has signed a contract with a tenant they receive that income on an ongoing basis. Even as we are starting to see green shoots in the economy, its unlikely that a motorist will ever want to revert to paying the higher prices charged by major car park operators at train stations or in city centres.

Kelly continued: Most of our landlords seem to have been using the extra income generated by letting their parking space to either pay off debts or to save for a rainy day or emergency. However, the average annual income is 1,545 so as we pull out of the recession and peoples finances stabilise, this could be put towards holidays or other indulgences.

Park Let calculates the rental price of a parking space in much the same way as a residential estate agent agrees the rental price of a property with a landlord. There is usually a maximum value for a space in a particular area or postcode and other factors can influence the price too, such as proximity to facilities or congestion zones. Security is another important factor: spaces or bays with key-pad entry, electronic gates or even CCTV can demand a premium.

Park Let has arranged over 10,000 rental contracts and has in excess of 20,000 parking spaces available to rent immediately across the UK. The company provides a fully managed letting service including matchmaking the tenant and landlord, preparing contracts and monthly rental collection. Park Lets rental prices are up to 20 per cent cheaper than other comparable season tickets and tenants can choose between a 5 and 7 day rental week.

* HM Treasury statistics show that the recession started in the UK in April 2008.

About Park Let

Park Let was established in 2004 to offer an effective marketplace and management service for the letting of parking spaces and garages. To date the company has arranged over 10,000 rental contracts and today the business has in excess of 20,000 spaces advertised to let. Landlords include residential clients with a single driveway, national car parks operators as well as owners and managing agents of apartment blocks, companies with surplus spaces and individuals or organisations with empty garages or lockups. All parking spaces and garages are promoted equally.

All parking spaces are available for tenants to use 24 hours a day except in unusual circumstances where specific condition are added to a contact. Park Let charges landlords 15% (+ VAT) commission of the gross monthly rental fee plus a one off 25 administration fee in the first month. All contracts include a one month cancellation clause which can be invoked at any time. Remit monies are due on 5, 15 and 25 using BACS after one month from the start of each contract.
Park Let
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