Do You Need Council Approval to Rent Out Your Driveway?

In August 2012, a few months after I launched Parking Made Easy (now Parksy), the mayor of the City of Nedlands in Perth said he wanted the site shut down. SmartCompany reported that he called profiting from verge rental "illegal", said the verges belonged to the city, and said renting out a private driveway would need planning approval that he would not allow.

I had never encouraged anyone to rent out a verge, and I told the reporter I would fight it. The site kept running, and it grew into Parksy. But that clash raised a question I still get asked every week: do you need permission to rent out your own driveway? Here is what I learned, and what the official sources say today.

Key Takeaways

• The verge (nature strip) is not yours to rent. In Nedlands it is part of the council thoroughfare, even though the property owner maintains it.
• Planning rules vary by council. In 2014 Brisbane City Council said that charging for a space could need a car park application.
• In a strata building, check the by-laws first. In a rental, get your landlord's written consent.
• The ATO says sharing economy income is assessable, even if you aren't carrying on a business.
• If you are unsure, ask your council's duty planner before you list.

What Happened in Nedlands in 2012

Parking Made Easy was seven months old and had more than 700 drivers using it across Australia's major cities when the dispute started. The mayor's objections, as SmartCompany reported them, were about verges: the strip of grass between the footpath and the road. As I put it to the reporter, "He doesn't want truck marks on the lawn, it's illegal, etc."

My position was simple. The platform was built for private driveways and garages, not council land. "The way I see it, it's a win-win for home owners and drivers," I told SmartCompany at the time.

The city's own rules today draw the same line. Its parking FAQ says the verge "is part of the council thoroughfare but is maintained by the adjacent property owner", and that the owner "can allow or deny vehicles parking on the verge". It also says boats, trailers, caravans and commercial vehicles cannot be stored on verges. So you can let a visitor park on your verge, but you cannot treat it as your property to rent.

Cars parked nose to tail outside houses: the pressure that makes neighbours ask about spare spaces, and councils ask about planning rules. Photo: Pexels / Boys in Bristol Photography

Does Renting Out a Driveway Need Planning Approval?

There is no single national rule. Each council applies its own planning scheme, and the question is usually whether charging for parking changes how your property is being used.

Brisbane is the clearest example on record. In 2014 a Brisbane City Council spokesperson told Property Observer that if a space is "being charged for use", then "a car park application is necessary", and warned that fines and even a court visit might follow (reported by apartments.com.au). That comment was made under the old City Plan 2000, which has since been replaced, so check the current position with the council before you rely on it.

When you call your council, ask these three questions:

• Does renting a residential driveway or garage to someone who doesn't live here count as a car park use in my zone?
• If it does, do I need a development application, or is there an exemption for small private arrangements?
• Does my property's development consent say anything about who can use the car spaces?

Write down the name of the person you spoke to and the date. If a neighbour ever complains, that note is worth having.

When every kerb on the street is taken, a spare driveway becomes worth something to the drivers who live and work nearby. Photo: Pexels / Mark Stebnicki

Strata Buildings and Rented Homes

If you live in an apartment, the strata rules can matter more than the council's. The NSW Government's strata parking page says most strata schemes have by-laws on parking and that penalties apply if they are breached. Read your by-laws before you list, and if they are unclear, ask the secretary of the owners corporation or your strata manager. Check whether the space is on your lot title or is common property with an exclusive use by-law, because the rules for each are different.

If you rent your home and the car space comes with the lease, renting it to someone else is a form of subletting. In NSW, the Tenants' Union explains that you need the landlord's written consent to sublet the premises or part of them, and that the landlord must not unreasonably withhold consent if you will still live there. Other states have their own rules, so check with your state's tenancy authority.

Two more checks are worth five minutes: ask your insurer whether your home policy covers a stranger's car parked on your property, and read your home loan terms if you are unsure what they allow.

Tax and a Final Checklist

The ATO treats this as sharing economy income. Its myTax 2026 instructions say amounts you receive from sharing an asset through a digital platform "are assessable income, even if you aren't carrying on a business", and that joint owners declare their share. Keep a simple record of every payment. Our guide to tax on renting a parking space covers this in more detail.

Before you list, run through this checklist:

1. Confirm the space is on your own property, not the verge or footpath.
2. Ask your council whether renting it out needs approval in your zone.
3. Check your strata by-laws, or get your landlord's written consent if you rent.
4. Tell your insurer and check your loan terms.
5. Agree the rules with the driver in writing: times, access, and who to call if something goes wrong.
6. Keep records for your tax return.

Fourteen years after Nedlands, I still think letting people use their own driveways is a fair way to ease parking pressure. Doing it properly just takes a few phone calls first. When you're ready, our beginner's guide to renting out your parking space walks you through the listing itself.

This article is general information, not legal or tax advice. Rules change and differ between councils and states, so confirm your situation with your council, strata manager or a registered tax agent.