Parking Lot Lease Agreement

What is a parking lot lease agreement?

A parking lot lease agreement is a legally binding contract used when an owner of a parking lot grants the other party the right to use a designated parking space for a certain period of time.

The parties involved in a parking lot lease agreement template are a landlord and a tenant. Both parties could be either individuals, organizations, or businesses. A landlord is an owner of a parking lot or a property management company acting on behalf of a landlord. A tenant is an owner of a vehicle who wishes to get the right to park it in a specified parking lot.

While the laws do not define a mandatory list of clauses for this type of contract, a simple parking space rental agreement should include:

• full names, addresses, and contact emails of the parties;
• detailed description of a parking lot;
• amount of rental payments and payment method;
• duration of a lease contract;
• termination clause;
• liability and a parking space’s insurance clause; and
• applicable law.

Whether you are looking for a car, van, or truck parking lease agreement, the present template is customizable for all types of vehicles.  This document, however, cannot be used for renting an apartment, commercial property for doing business, or an agricultural farm.

Parking lease contract template: Guide for non-lawyers

The parking lease contract template is a complex legal document that requires the inclusion of important elements without which the present document cannot be complete or valid. Below we made a list of important elements every template should have:

Description of the Lot

A good example of a parking space lease agreement should always contain a clear description of a rented parking space. The description must include:

• full address of a parking space (mandatory);
• detailed description of a parking’s features (mandatory);
• parking space’s size in square feet (mandatory);
• list of the vehicle’s criteria that allowed for the parking (optional).

Payment Terms

A well-drafted parking lease contract sample must specify how a tenant shall pay for rented space. Thus, the list of clauses below should be incorporated in the text of a lease contract:

• payment model (e.g., monthly, weekly, or annual fees);
• acceptable payment methods a tenant can use to make rental payments;
• fixed payment deadlines (e.g., by the 1st day of each calendar month);
• late fees (i.e., a penalty for failure to make a rental payment on time).

If the parties sign a parking lease contract for a period of more than one year, it is the right thing to consider inclusion of an annual increase of rental payments. Inclusion of such a clause allows a landlord to automatically increase rental payments for the new calendar year. At the same time, it is essential to provide a maximum cap, above which the increase cannot be made.

Duration & Termination

Whether it is a weekly or monthly parking agreement, the document must provide the exact start and end date. The start date is not the date on which parties sign the document but a date on which a tenant can access their property.

Parties may enter a lease agreement for a fixed or indefinite period of time. If the period for a parking space lease agreement is fixed, it is possible to include an additional automatic renewal clause. This clause basically provides a prolongation of an existing contract on the same terms for the same period of time. If either party wishes to opt out, that party has to send a prior written notice before the agreed end date informing about the contract’s termination.

Finally, both parties should have a right to end an existing contract with or without a cause at any time. Although an immediate termination is not possible, either party can still send a prior written notice to inform about the intent of termination. A notice period for ending a parking lease contract is usually very short and varies between 5 and 14 days.

General Provisions

Even a simple parking space rental agreement must contain a number of essential clauses below:

• Governing law. This is a law of a state that applies to the contract. As a rule of thumb, a selected state is always a state where a parking lot is physically located. It is also possible to select a state of a tenant or a landlord, which is not a common option.
• Subleasing rules. A well-drafted parking lease agreement template shall prohibit a tenant’s right to further sublease a rented parking space to third parties.
• Indemnification clause. This is a standard provision by virtue of which a tenant indemnifies a landlord against all claims from third parties that may arise in relation to a tenant’s usage or occupancy of a rented parking lot.

How to customize a parking lease agreement at FasterDraft?

To get a fully customized legal document template, follow the instructions given below:

1. Click the “Create Document” button.
2. Answer simple questions in the form.
3. Select a template’s format—parking space rental agreement PDF or Word.
4. Make a payment.
5. Download and use the ready template instantly.