Is It Legal to Rent Out My Garage to Make Money?

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Heather Jones
Heather Jones
I'm Heather, an author passionate about home improvements. My writing is your guide to making homes better. Let's explore easy ways to enhance your living spaces, from small fixes to exciting projects. Join me on a journey of making your house a cozy and stylish haven.

Most people will not say no to making a little extra money. That’s why there has been a dramatic increase in the number of properties available through Airbnb and similar sites. It’s fairly easy to create an income if you have an unused room!

But, if you live in a city you can also generate an additional income by renting out your garage or parking space. There are companies, such as this firm specializing in cheap parking Melbourne that will connect you to people looking for parking. You pay the firm a small charge and get to keep the rest. The person parking in your driveway or garage benefits from a significant cost reduction compared to traditional car parking facilities.

The Legality of Renting Garages

The good news is that, in most cases, it’s legal to rent your garage out and make additional money. You will need to check your local rules and regulations, in some areas it can be prohibited. It is even possible if you’re renting your property. Again, you’ll want to check that it’s not against the rental agreement.

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However, legality is one thing, there are several other considerations you need to be aware of:


You need to create a written contract between you and the person renting your garage. This will ensure that you both know the rules and sets the duration of your contract. Without a contract, you’ll find it hard to ensure they only use the garage for specified purposes and they leave when you need them to.

A written contract can be legally enforced, if necessary. It can also ensure your renter doesn’t sub-rent the garage. 


While the person is using your garage, they may cause damage to your property or the property nearby. It’s important that you have insurance to cover this, you don’t want your small income generator to end up costing you a small fortune.

You’ll be liable for the damage they cause, make sure your insurance covers this. It’s unlikely that it will be covered on your existing house insurance policy. 


The garage should only be used for things that you are comfortable with, such as storage or parking their car. These terms should be made clear when talking to potential renters and creating the contract.

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This will help to ensure your garage isn’t being used for illegal activities. Equally, the garage is a storage space not somewhere for people to live!


You should note that any income is potentially taxable. It’s a good idea to record the funds you receive and declare them on your annual tax return. This will allow you to calculate any tax due and pay it. If you don’t you may find yourself with a large bill and potentially not enough money to pay it.

It is legal to rent out your garage and earn extra money. But, as with everything in life, she should approach with caution and make sure you have all the correct paperwork before you rent it for the first time. 

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