In Australia, the trend of side hustles is on the rise, with nearly 40% of the population looking to supplement their income through additional projects alongside their regular jobs. Renting out unused car spots has emerged as a popular and seemingly straightforward way for individuals to earn extra money, particularly in bustling cities such as Sydney and Melbourne, where prices can reach as high as $850 per month.
However, before cashing in on this opportunity, it’s crucial for homeowners to understand the legal implications. Generally, if you own a house with a garage or driveway, you can legally rent out the space. The situation is more complex for those owning units, as common property dynamics apply. Amanda Farmer, a strata lawyer, emphasises the importance of confirming ownership of the car space and checking for any strata bylaws that could prohibit renting.
Strata laws might restrict how individual residents can use their property; for example, a bylaw limiting access fobs for security reasons might hinder someone from renting out their car space. Homeowners should ensure compliance with any such regulations to avoid legal issues.
For renters, the situation is different. They must seek permission from their landlords to sublet a car space, as most residential leases forbid sub-leasing without consent. Some tenants might choose to rent out these spaces without approval, often resulting in landlords being unaware of the situation. However, adhering to both strata bylaws and lease agreements is essential to avoid potential disputes with owners’ corporations.
The potential earnings for renting out a car space vary significantly based on location. According to Parkhound, a leading parking marketplace, outdoor or driveway spots can fetch up to $300 monthly, while undercover spaces may yield around $400. The market is particularly lucrative in central areas, where prices can soar to $850.
Liabilities also come into play for those renting out car spaces. Owners can be held accountable for any damage to vehicles or injuries occurring on their property. Furthermore, any income derived from renting a car space may be subject to taxation, necessitating precise record-keeping for tax purposes.
In summary, while renting out car spots can be a profitable side venture, it is essential to navigate the legal landscapes, whether one is a homeowner or a tenant. Consulting legal professionals and ensuring compliance with local laws and regulations will help mitigate risks associated with this increasingly popular form of income generation.