A month-to-month parking rental agreement lets a driver rent a space with no end date. It rolls over each month until either side gives written notice, usually 30 days. That flexibility suits both sides, but only if the agreement is specific about the space, the rent, the rules and the exit. This guide walks through each clause in the order you will write it, then covers the special cases (tandem spaces, big vehicles, EV chargers, buildings with rules of their own) and the tools that make the rental easy to run.
If you want a form to fill in straight away, start with our sample parking agreement contract and templates, then come back here to decide the details.
Month-to-Month or Fixed Term?
Decide this first, because it changes several other clauses.
- Month to month: no end date. Either side ends it with written notice. It suits commuters whose job or address may change, and space owners who might want the space back.
- Fixed term: a start and end date, for example a 12-month lease for a work contract. The rent is locked in and neither side can walk away early without a clause that allows it.
- Fixed term that rolls over: for example six months, then month to month unless either side gives 30 days' notice. This gives the owner some certainty at the start and both sides flexibility later.
For a month-to-month agreement, write the notice period and how notice must be given (email, text or letter) into the agreement itself. Where local law sets a longer minimum for your kind of rental, the law applies whatever the contract says.
Writing the Agreement, Clause by Clause
Work through the clauses in order. Each one answers a question that would otherwise turn into an argument. Photo: Pexels
1. The Parties
Use full legal names, postal addresses, email and phone numbers for both the space owner and the renter. If a company is renting, name the company and the person signing for it. These are also the contact details notices go to, so keep them current.
2. The Space
Write the full address and then identify the exact space: "Space 12, basement level, 123 Main Street" or "the eastern space of the driveway, closest to the street". Add the approximate length, width and height clearance if the space is tight, the type of space (covered garage, open lot, tandem, driveway) and how the renter gets in: gate code, key, fob or remote.
3. Term and Notice
For a month-to-month rental: "This agreement starts on [date] and continues month to month until either party gives at least 30 days' written notice." Say whether notice can end the agreement on any day or only at the end of a rental month.
4. Rent, Due Date and Late Fees
- The amount and the period, for example $150 per month, paid in advance.
- The due date, for example the 1st of each month.
- The payment method and a reference to use each time.
- Any late fee and when it applies, for example $25 if rent is more than five days late.
- How and when the rent can change. In a month-to-month agreement, a common term is 30 days' written notice of any increase.
If you are not sure what to charge, our guide on how to price your parking space shows how to compare similar spaces nearby.
5. Deposit
State the deposit amount, what it can be used for (unpaid rent, damage beyond normal wear), and how many days after the agreement ends it will be returned, with a written list of any deductions. Take a separate refundable deposit for each remote or fob, and write down the replacement cost if one is lost.
6. The Vehicle
List the make, model, colour and registration. This stops the space quietly becoming the parking for a second household car, and it lets the owner identify an unauthorised vehicle quickly. Require the renter to tell you in writing before swapping cars.
7. Use of the Space
Spell out what is not allowed. The usual list:
- No storage of boxes, tyres, furniture or anything else beside the car.
- No vehicle maintenance beyond emergencies, such as changing a flat tyre. Oil changes stain concrete and create a fire risk.
- No flammable liquids or gas bottles.
- No commercial activity run from the space.
- No subletting or sharing without written consent.
8. Liability and Insurance
The renter parks at their own risk, and the owner is not responsible for theft of or damage to the car or its contents unless the owner was negligent. The renter pays for damage they cause to the space or the property, such as scraping a pillar. Ask the renter to keep the car registered and insured, and to show proof on request.
9. Owner Access and Repairs
Say how much notice the owner gives before blocking the space for repairs or cleaning (48 hours is common) and whether the rent reduces if the space is out of use for more than a few days. This one clause prevents a surprising number of disputes.
10. Ending the Agreement and Default
Set out the normal notice period, what happens if rent is not paid (written notice, a period to pay, then termination), and how long the renter has to remove the car afterwards. Keep it short and clear. If a renter stops paying or leaves a car behind, the steps are in our guide to subletting, disputes and ending a parking agreement.
Special Cases to Add
Agree the unusual parts of your space in writing: shared access, charging and vehicle size. Photo: Pexels
Tandem Spaces and Shared Access
In a tandem space one car parks behind the other, so one driver regularly blocks the other. The agreement should say who parks in front and when, how drivers contact each other (a shared group chat works well), how quickly a blocking car must be moved (for example within 15 minutes between 6am and 10pm), and whether keys are exchanged. Without this, a tandem rental becomes a string of angry messages.
Oversized and Commercial Vehicles
Vans, utes, trucks and large SUVs are heavier and longer, and some buildings ban them. Either ban them outright ("private passenger vehicles only; no trailers, caravans or commercial vans") or set limits, for example a maximum height of 2.4 metres, a maximum length, or a weight limit where the space is on a suspended slab. If you allow work vehicles, add quiet hours, for example no engines running between 10pm and 6am, and ban loading or unloading hazardous materials.
EV Charging
If the space has a charger or power point, say how electricity is paid for (a flat monthly amount, a metered charge, or included in the rent), whether charging is limited at peak times, who pays if the charger or cable is damaged, and how long a fully charged car may stay plugged in when the charger is shared.
Weather, Gates and Access Devices
In places with snow, say who clears the main driveway and who clears the rented space, and how quickly after a snowfall. For gated spaces, record the device deposit, the replacement fee and the return date. Add what happens if the gate breaks: who calls for the repair and whether rent is reduced while it is out.
Check You Are Allowed to Rent the Space
Before you sign anything, confirm you have the right to rent the space out at all. This is the most common reason a parking rental goes wrong.
- Building, HOA and strata rules: many condo associations, HOAs and strata schemes restrict renting parking to non-residents, or require approval first. Read the by-laws and get written permission if they are unclear.
- Your own lease: if you rent your home, your lease probably covers the parking space too, and many leases ban subletting any part of the property.
- Zoning and permits: some cities restrict commercial activity in residential zones, ban parking commercial vehicles or trailers in residential streets, or require a permit to rent out a driveway. Search your city or county website for its zoning code.
- Tenancy law: a space rented on its own is usually not covered by residential tenancy law, but a space rented with a home often is. That changes deposit limits and notice periods. If you rent out several spaces as a business, get local legal advice.
Who Is Responsible for What
| Area | Space owner | Renter |
|---|---|---|
| The space | Keep it clear, safe, lit where promised and accessible. | Keep it clean and free of personal items and rubbish. |
| Payments | Give clear payment instructions and receipts on request. | Pay on time, every time, as agreed. |
| Rules | Make sure renting is allowed under building, strata, HOA and zoning rules, and share those rules with the renter. | Follow the agreement and the building rules. |
| Communication | Give notice of repairs, rent changes or access changes. | Report problems with the space or access promptly. |
| Insurance | Hold property liability cover for the premises. | Keep the vehicle registered and insured. |
| Deposit | Hold it and return it on time with an itemised list of deductions. | Leave the space in the condition it was found. |
Signing and Storing the Agreement
Both of you should sign the same final version and keep an identical copy. Photo: Pexels
Both parties must sign the same final version. If anything is changed by hand, both initial the change. Then each of you keeps a complete copy.
| Signing method | Good for | Watch out for |
|---|---|---|
| In person, pen and paper | Local rentals where you can meet at the space and inspect it together. | No automatic record of when it was signed. Scan it straight away. |
| E-signature service | Most rentals, especially if you cannot meet. It records who signed, from which email, and when. | Some services charge after a few free documents. |
| Scan and email | Quick, informal agreements. | Versions get mixed up. Name the file with the date. |
Keep the signed copy in cloud storage, send the renter the final PDF on the day it is signed, and, if you like, keep a printed copy as a backup. The agreement contains personal details, so share it only with the people who need it.
Tools for Managing Parking Rental Agreements
You do not need property management software for one or two spaces. A small set of free or cheap tools covers everything:
- A template: start from a sample parking agreement and save your finished version as your own master copy.
- E-signatures: DocuSign, Adobe Acrobat Sign or similar services create a signing record for each party.
- Cloud storage: Google Drive, Dropbox or OneDrive, with one folder per rental for the agreement, photos and messages.
- A payment log: a spreadsheet with date, amount, method and reference. Bank transfers with a fixed reference make this almost automatic.
- Calendar reminders: for rent due dates, deposit return deadlines, and a review of the rent once a year.
- Dated photos: of the space before the first day and after the last, stored with the agreement.
Payments and Finding a Renter
Bank transfer is the simplest method in most countries. Payment apps such as Zelle, Venmo or PayPal are fast, but check the fees and keep the receipts. Cash and cheques leave no automatic record, so issue a written receipt each time. Whatever you choose, name it in the agreement so there is only one way to pay.
To find a renter, list the space where local drivers are searching. A good listing has clear photos of the entrance and the space, the dimensions ("fits a large SUV"), how far it is from the station or the CBD, the access hours, and a price in line with similar spaces. Parksy charges no commission, so drivers contact you directly and you agree the terms between you.
Once you are ready, copy the sample agreement, add the clauses from this guide that fit your space, and sign it before the first car parks.
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