Can You Rent Out Your Spare Parking Spot? (A Guide for Tenants & Landlords)
In Malaysian high-rise living, a car park bay is a hot commodity. Some units come with two spots, while others are stuck with one (or none). This creates a natural opportunity: tenants with no car want to “cash in” on their empty spot, and landlords often want to keep a spot for themselves or rent it to a third party.
But is this actually legal? Can a tenant just “Airbnb” their parking lot to a neighbor? Can a landlord rent the house to Person A but the parking to Person B?
The answer lies in the fine print of your tenancy agreement and your condo’s house rules. Here is the right way to handle it without breaking your contract.
Scenario 1: The Tenant Wants to Sub-Let the Parking
The Situation: You are renting a unit that comes with two parking bays, but you only own one car. A neighbor offers you RM150/month to use your spare spot. It sounds like easy pocket money.
Can you do it? Technically, no—not unless you have specific permission. Here is why:
- It’s Considered Sub-Letting: Most standard tenancy agreements define the “Premises” to include everything listed in the property details—including the parking space. If you rent that space to someone else, you are sub-letting a part of the property. Most contracts strictly forbid sub-letting “the whole or any part” of the premises without the landlord’s written consent.
- The “Commercial Purpose” Trap: Your agreement likely has a clause stating the parking space is for “private motor vehicles” only and cannot be used for commercial purposes. Collecting monthly rental income from a neighbor could be argued as running a business from the property, which is often a breach of contract.
- Security Risks: Building management often requires strict vehicle registration. If you hand your access card to someone else, you might be breaking the condo’s by-laws. If that person scratches a neighbor’s car or blocks an entrance, you (the official tenant) are responsible for the penalty.
The Right Process for Tenants:
- Check the contract: Verify if the parking bay is officially listed as part of your rental unit.
- Get written consent: Ask your Landlord for permission formally. Do not do it “under the table.”
- Vet the user: Ensure the “sub-tenant” is a resident of the same building. Management usually forbids renting spots to outsiders for security reasons.
Scenario 2: The Landlord Wants to Rent the Parking Separately
The Situation: You are a landlord renting out a unit. You notice the tenant doesn’t have a car. You decide to exclude the parking bay from their lease and rent it to someone else for extra income.
Can you do it? Yes, but timing is everything.
- Before Signing: You have the right to exclude the parking space from the deal. When filling out the property details schedule, you simply mark the parking section as “Nil” or “Not included”. This means the tenant rents the house only, and you retain the rights to the parking bay.
- After Signing: If you already signed an agreement that lists the parking bay number, you cannot take it back just because the tenant isn’t using it. The tenant has the right to “exclusive possession” of the premises. Taking the spot back mid-tenancy would be a breach of their rights.
The Right Process for Landlords:
- Decide early: Determine the parking arrangement before marketing the unit.
- Document it: If the tenant doesn’t need the spot, clearly state in the schedule that parking is excluded.
- Check management rules: If you want to rent it out separately, ensure your condo management allows owners to rent bays to non-residents (most do not).
The Difference Between “Pro-Tenant” and “Pro-Landlord” Agreements
The type of agreement you sign matters when asking for permission.
- In a Pro-Tenant Agreement: The section on sub-letting often includes a phrase that the Landlord’s consent “shall not be unreasonably withheld”. This gives the tenant a stronger argument to rent out their spare spot if they follow all the rules.
- In a Pro-Landlord Agreement: The landlord has full discretion to say “no” without needing to give a reason.
Conclusion: Don’t Assume, Document It.
Whether you are a landlord maximizing yield or a tenant subsidizing your rent, never trade access cards for cash without a paper trail.
DIY Agreement’s Tenancy Packs make this easy. Our templates clearly separate the parking details from the unit details, forcing you to be specific about what is included. Plus, our clear sub-letting clauses provide the legal framework to request or grant permission properly.
