Most Australians would jump at the chance to pocket some extra cash and thousands of people are doing just that by renting out their unused car spots.

Side hustles are booming in 2025 and almost 40 per cent of Australians want to run one alongside their regular jobs, according to a Small Business Loans Australia survey.

And on first glance, renting out a car space may seem like the easiest, most lucrative option.

Some Australians are charging up to $850 per month for parking spaces they don’t need in busy cities like Sydney or Melbourne.

The only problem is they may be breaking the law or strata bylaws by doing so.

Is it legal to rent out your car space if you own a home?

If you own a house with a garage or driveway, the answer is usually yes.

“First of all, you want to check that you actually own your car space,” Farmer told 9news.com.au.

“Some spaces are common property … so if it’s not actually part of your lot, the property that you own, then you’re going to need permission from the owners corporation to lease it.”

If you do own your parking spot, you’ll need to check there are no strata bylaws that would prevent you from leasing it out.

It’s illegal for strata to restrict how residents use their lots but some valid bylaws, like those that address security risks, could get in the way.

For example, a strata bylaw that limits the number of building access fobs residents can hold for security reasons may also limit their ability to rent out a car spot.

If a couple that owns a one-bedroom unit is limited to two fobs, they can’t give one to a non-resident renting their car spot because it would leave one of them unable to access the building.

“Buildings are very aware of this. They see it as a practice they want to stamp out, and they’re tackling it from that security angle, which is a pretty easy way to tackle it,” Farmer said.

“Even if you own your space, check the bylaws that there’s no restriction.”

Is it legal to rent out you car space if you’re a renter?

As for the 2.9 million Australian households that are renters, they also need to get landlord permission if they want to rent out a car spot that is part of their lease.

Most standard residential leases prohibit tenants from sub-letting without the landlord’s consent, whether it’s a second bedroom or a car space.

“If you want to give someone else exclusive use of part of the property, you’re going to need the landlord’s consent – it doesn’t matter which part that is,” Farmer said.

That doesn’t stop some tenants from flouting the law and trying to lease their unused car spots without asking.

“What you see in practice instead is that the landlord just doesn’t know.”

Strata bylaws also apply to tenants, so it’s important for renters to check they’re not breaking any rules before trying to rent out a car space.

“No one, especially not a tenant, wants to end up in a legal fight with an owners corporation. It’s just not worth it,” Farmer said.

What is a car space worth?

Australians looking to rent out their car space can make up to $450 per month, according to Parkhound, one of the most popular parking marketplaces in Australia.

Its website claims outdoor and driveway spots can go for up to $300 per month, while undercover spots can go for up to $400 per month.

Indoor parking spots or spaces for rent in lockup garages go for up to $450 per month.

But the value of a parking space largely depends on the location, with some spots in the Sydney CBD listed as high as $850 per month.

Some Australians list car spaces for rent on Facebook Marketplace, where 9news.com.au has sighted spots in Mascot listed as low as $35 per week (about $140 per month).

Are you liable if you rent out your car space?

You may be liable for any damage to someone’s car or person if it occurs on your property, even if that’s only a car spot.

”It would be a good idea to put your insurer on notice that somebody else is using the property for that purpose,” Farmer said.

Any income from leasing a car space may also be subject to income tax, so it’s important to keep records of any lease agreements and payments for tax time.

“When in doubt, seek legal advice,” Farmer said.

The information provided on this website is general in nature only and does not constitute personal financial advice. The information has been prepared without taking into account your personal objectives, financial situation or needs. Before acting on any information on this website you should consider the appropriateness of the information having regard to your objectives, financial situation and needs.