Lease Agreement for Parking Space

What is a lease agreement for parking space?

A lease agreement for parking space is a simple legal document used between the owner of a parking space and the tenant to define the main terms and conditions of the rent. A standard contract includes details of the parties, description of the parking space, scope of permitted usage, payment terms, termination clause, towing authorisation and dispute resolution clause.

A solid and professionally drafted car parking lease agreement template clarifies parties’ expectations and sets up clear terms for the rental arrangement, as well as protects each party in case of a dispute. This document is ideally used by Australian businesses and individuals on a daily basis.

What should be included in this lease agreement for parking space?

A simple parking space rental agreement shall include the list of important legal clauses:

Description of the Parking Space

The document must clearly outline the parking space’s location, area and scope of permitted usage. For example, the landlord may allow the parking space only for parking specific vehicles. If the parking space forms a part of a residential apartment complex or condominium, the usage of the leased parking space is also subject to the applicable strata laws.

Payment Clause

A sample car park rental agreement defines the amount of rental payments in Australian dollars and their frequency. The parties can also add, if needed, late fee clauses allowing the landlord to charge additional interest when the tenant fails to make the rental payments on time.

Utilities & Deposit

The landlord may also require paying an additional security deposit upon signing this agreement. The amount of a security deposit shall not exceed the amount of one month’s rental payment.

Default & Termination

When the tenant violates any of these obligations provided in the original contract, this is known as a default. In case of a default, the landlord should give the tenant a period of time within which the tenant should be able to rectify the default. For example, if the tenant is in arrears, they can make the payment to avoid termination.

This agreement ends upon its expiration date. However, each party can end it earlier by sending the other party a prior written notice. The landlord can also end this agreement immediately in case the tenant’s default is not rectified within the agreed period of time.

Who should use this car park lease agreement template?

This lease agreement template for a park space is a helpful document most Australians need when renting out or leasing their car park spaces across Australia:

• Property investors dealing with multiple parking lease spaces;
• Apartment owners willing to sublet their parking space to third parties or other apartment owners;
• Tenants looking for a solid legal template to finalise a parking lease arrangement for their vehicle;
• Commercial landlords managing various parking spaces across the country.

This car park lease agreement is a special type of a commercial property agreement. If you are looking to rent out an office, retail shop or premises, warehouse or other commercial property, a general commercial property lease agreement should be used instead.

Legal Overview of Car Park Lease Agreements in Australia

Before entering a lease agreement for a car parking space, the future landlord and the tenant must be aware of a number of important legal considerations.

Basic Legal Overview

Even though the lease relations between the parties are subject to the general principles of Australian contract law, parties must be aware of any relevant state or territory legislation in place. Depending on the state or territory wherein the parking space is located, the parties may be subject to additional rules such as paying extra taxes or duties, increased rates for utility bills, etc.

Congestion Levy

This is a type of an additional mandatory payment most landlords and tenants overlook to include in their car park lease agreement template. By virtue of the application of a congestion levy, some big cities such as Brisbane or Melbourne may apply additional annual or monthly taxes for parking a vehicle within a highly dense urban area. Failure to agree in advance on who shall be responsible for such a charge may result in the landlord being solely responsible for the coverage of such an expense.

Strata Laws

If a parking space is part of a condominium or other residential complex, the tenant may fall within the regulation of the respective strata rules. In that case the timing and location of the parking are strictly limited to a specific purpose and designated residents. For example, if you are planning to store your personal belongings in a parking space that is a part of a residential complex, the parking space lease agreement should additionally comply with any applicable strata laws in force.

Towing

Australian law does not provide any specific regulation in case the tenant fails to vacate the parking space after the end of the lease. In such a case the landlord may include a separate “towing clause” in the car park lease agreement Australia sample that allows the vehicle anytime after the termination. If this is the case, all related expenses to the towing of the vehicle shall be borne by the tenant.

Depending on the location of the parking space, some Australian states or territories may allow it to be performed only by the authorised towing agencies. In some states like Queensland, the towing of the vehicle is only possible upon the vehicle’s consent. Therefore, most landlords tend to request such a written consent from their tenants on the date of signing the main car park lease agreement.

How to customise a car parking lease agreement with FasterDraft?

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