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Only a few decades ago, renters were assured of sufficient parking lots outside their apartments and at work. Today, however, the situation is different. As parking spaces become more scarce, many must find a secure and accessible parking lot near their home or workplace. If you own a suitable space, you can make money leasing it on a monthly, yearly, or event-based agreement. Some list their spaces on parking apps, while others prefer a one-on-one relationship with tenants.
Renting out a parking space is simpler than leasing apartments. There’s a limited vetting process, and the contract is more straightforward. However, signing an agreement is just as important. A parking lot rental agreement formalizes your partnership with the tenant and outlines the terms and conditions of the contract. Also, having a legally binding contract makes dispute resolution easier.
Legal documents are location-sensitive because of differing laws. Therefore, if you use a template, check the local regulations and adapt the document as necessary.
This article outlines the contents of a parking space rental agreement, helping you create yours quickly.
A properly executed rental space agreement is a contract between a lessor (landlord) and a lessee who needs space to park their vehicle. Often, the vehicle is a car, truck, recreational vehicle, boat, or motorcycle. The document protects both parties by assigning responsibilities and liabilities and outlining payment terms.
Whether you are a large commercial space parking provider or a private property owner with extra space you want to lease out, drafting a contract helps you think ahead about the legalities. Here are some reasons why you require an agreement.
The benefits of signing a parking space rental agreement make it a necessity for the success of your business.
A rental agreement for parking spaces serves many needs. It establishes the terms for renting the space, clarifies each party’s rights and responsibilities, and protects them when there are disputes.
Your contract should be personalized to your needs. Most parking lot rental agreements contain the following components.
The first paragraph names the landlord and the tenant and clarifies that they have entered into a contract on the said date. It also provides their contact information, such as mailing addresses.
Next, describe the parking space location. You may provide the GPS location in addition to the physical address. Also, state the specific parking stall number allocated to the tenant.
The contract should state the space’s cost, set rent due dates, and penalize late payments. You can also mention when you intend to review the cost. Remember to factor in extra costs, such as taxes.
Specify the lease term by stating the start and end dates of the contract. Outline actions and inactions that may lead to early termination of the lease and how much notice each party should provide to end the contract early.
This section specifies when the tenant can use the parking space. Some parking lots are only available during the day on weekdays, while others may be used overnight and on weekends. Also, set opening and closing hours.
List the types of vehicles that may park on the property. Your contract may require the tenant to provide the registration details and a description of the car they will park in their rented space.
Most parking space rental agreements require that the vehicle be insured before it can be parked there.
Set conditions for using the space. Examples include the following:
Use the contract to assign each party’s responsibilities. For instance, the landlord will be responsible for security and maintenance, and the tenant must observe parking hours and keep their vehicle in good repair.
Assign responsibilities in loss, theft, or damage to property at your premises. Limiting liability protects you from lawsuits when problems arise. Your contract should mention that tenants park their vehicles at their own risk: the landlord is not responsible for accidents, theft, or injuries to tenants. Consider additional liabilities, such as the cost of towing grounded vehicles.
Explain how disagreements and fallouts will be resolved. Some options include mediation and arbitration.
Unless the tenant signs the contract, you cannot hold them accountable. Always leave a space for the lessor and lessee to sign and write the date.
Consider seeking legal advice to ensure you include every required component and clause. For example, you can add a clause allowing updates and amendments. Remember to write in simple yet formal language and keep the document professional.
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