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More Money Mondays: Renting Your Parking Space

A buddy of mine bought an older condo. The owner was going to sell the condo and the parking spot separately but my friend insisted that the parking spot be included, even though she doesn’t have a car.

Why?

She knew that a condo with a parking spot would resell faster and at a higher price than one without. She also knew that the condo was poorly designed. There wasn’t a parking spot for every unit and there certainly wasn’t a parking spot for the two cars typically coming with today’s couple/family buying the unit. This made the parking spot more valuable real estate than the condo itself.

What is she going to do with it? She doesn’t have a car so she won’t be using it herself. Instead, she’s renting it out (and getting quite a nice return on it too, all while her spot appreciates).

What if you have a house, instead of a condo? My father-in-law’s neighbor is renting out half of his driveway to another neighbor (with car crazy teenage boys).

There are a few things to consider with this plan. The big one is insurance and liability. Another issue, especially with condo dwellers, is whether this is allowed (some condos and even some towns won’t allow it).


Yellow Car CES

Posted by Kimber on November 26, 2007 6:00 AM |

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