English
Buying a parking space and renting it out is a real estate investment that can quickly prove profitable, especially in major cities. It's an excellent way to diversify your assets and invest your money away from the banks. Or to make the most of a parking space or garage that you're not using! Come on, let's explain the advantages of this real estate investment and how to... get on with it 😉 !
WHAT ARE THE ADVANTAGES OF INVESTING IN PARKING SPACES?
- It's a more affordable rental investment than buying a property. A parking space is ideal for a first property investment, when you don't have the budget to buy a studio or apartment to rent out. Maintenance and management costs are also much lower.
Buying a parking space to rent out offers simplified management. Your tenant won't be calling you in the middle of the night because his tap is leaking! What's more, unlike a standard lease, there are no obligations in the lease contract for a parking space. You set your own conditions (amount, duration, security deposit, etc.). You can also use a standard model to draw up your lease contract.
Attractive profitability. The rate necessarily varies according to the location of the parking space, its purchase price and the rental rate. According to Drimki, a real estate estimation tool, the profitability of a parking space ranges between 4% and 12% in 2022/2023.
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😬 One small downside: notary fees are high relative to the size. Fees are calculated on a sliding scale. Acquisition costs thus represent around 20% of the purchase price if it's less than 20,000 euros. |
HOW TO CHOOSE A PARKING SPACE FOR RENTAL INVESTMENT?
Location
Not all parking spaces are created equal. Obviously, location has an impact on the purchase price, but think long-term! Preference should be given to spaces in the city center, close to intermodal areas such as train and public transport stations, or in neighborhoods where parking is expensive.
To help you choose a parking space or garage to rent, consult :
- Yespark's annual barometer of parking prices in France,
- the property price barometer published quarterly by notaires (to identify attractive areas and demographic trends!)
- a real estate agency that can advise you.
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A word of advice: choose a parking space with an electric recharging point! Otherwise, it's always possible to install one. |
The size of the space
Beware of small spaces into which all the cars (or several two-wheelers!) won't fit! The minimum size is regulated and varies according to the type of parking (battle, herringbone, slot).
Rental profitability of parking lots
Before you invest your euros, make a quick estimate of the profitability (income generated) of the offers. It's simply calculated as follows
(monthly rent x 12) / purchase price x 100
For your calculation, consult the monthly rental price for a similar parking space, to obtain an estimate and make your calculation. Please note: this does not include charges, property tax and other additional costs.
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To avoid unpleasant surprises and excessively high charges, be sure to check the last three years' service charges, the amount of property tax and the tax assessment. Depending on the size of the space, these may vary. |
HOW DO I DECLARE RENTAL INCOME FROM A RENTED PARKING SPACE?
Like all your other income, rental income from a rented parking space must be declared! Revenues are taxed as either "revenu foncier" or "BIC". VAT applies in all but a few cases. In France, you must declare your rental income on your tax return. Depending on the amount of your rental income, you'll be subject to a specific tax regime, and therefore an allowance.
In Belgium, it's all the same! Depending on whether or not you're renting out your parking space for professional purposes, the tax treatment will change.
DIVERSIFY YOUR INVESTMENTS WITH BIRDEE
The 🔑 when investing? Diversification! Like parking, which is a more accessible rental property investment than buying an apartment or house, Birdee offers you the chance to invest from as little as 50 euros in portfolios made up of sustainable and responsible securities.
