A parking space lease Agreement is a document that is used when one person, known as a lessor, would like to rent out a parking space to another person, known as a lessee. This agreement can be useful in bigger cities, where it is challenging to find a good, regular parking spot, but it can also be used in smaller towns where there are spaces that could be generating income.
Though both documents are meant to facilitate a lessor and lessee arrangement, they are used in different situations. A parking space lease agreement is used to rent out an empty parking spot. There is usually no structure or building on the space that is being leased out. By contrast, the commercial lease agreement is used to rent out a commercial building.
No, it is not mandatory to have a parking space lease agreement. A lessor and lessee are free to enter into a rental relationship without creating a formal contract memorializing the arrangement. However, using a written parking space lease agreement is highly advisable because it protects both the lessor and the lessee. By making each party's rights and responsibilities clear and upfront in writing, potential misunderstanding is avoided.
A security deposit is money paid from the lessee to the lessor at the start of the lease. This money is often the equivalent of one month's rent and is meant to be used by the lessor to cover any damages that happen to the parking through the fault of the lessee. At the end of the lease, if there is no damage, the security deposit is returned to the lessee.
Both individuals and businesses may enter into parking space lease agreements. For individuals entering into parking space lease agreements, they must be of legal age to enter into a contract, 18 years of age or older in most states. They must also be mentally competent to enter into a contract. Business entities entering into a parking space lease agreement must have the legal authority to do so, usually outlined in the business' governing documents, such as bylaws or operating agreement.
There is no maximum or minimum amount of time that the parking space lease agreement can last. However, most parking space lease agreements are for month to month arrangements. Parking spaces in more desirable locations may be rented for longer periods of time.
When the parking space lease agreement is written and all the relevant information has been included, both the lessee and the lessor should sign and date the document. The parties should each keep a copy of the agreement for reference and in case of future dispute. The signing does not need to be witnessed, and the document does not need to be notarized for it to go into effect.
A valid parking space lease agreement must contain at least the following mandatory clauses:
In addition to the above mandatory information, the following information may also be included:
Parking space lease agreements are governed by state and local laws. Local zoning laws impact how spaces may be used. Only buildings and areas that are zoned appropriately use may be used for parking. For example, many cities have laws about not using residential areas for commercial parking.
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Country: United States