Parking app companies believe Kiwi homeowners could be making money out of tarmac, highlighting to OneRoof the earning potential of residential driveways.
They note the huge demand for parking in suburbs with popular retail strips or visitor attractions or are within walking distance to central business districts. Many of these, they say, have limited off-street parking options, opening the door to residents and commercial landlords with spaces to spare.
Hot parking suburbs in Parnell and Ponsonby, in Auckland, Te Aro and Thorndon, in Wellington, and Sydenham in Christchurch.
Toby Littin, chief executive of Parkable, which connects car park owners with drivers on the hunt for a parking spot, said his app used to offer more in the way of domestic driveway spaces, but most parking spaces currently on offer were in apartments or commercial buildings.
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Rates on Parkable start at around $2 per hour or $10 per day, with parking space owners typically earning $4 an hour before the app takes its cut.
Campable is a similar app which connects campervan owners with property-owners who are willing to rent out their driveway or front lawn.
Campable owner Warwick Beauchamp said the homeowners that do best are located in beautiful settings and offer hospitality to tourists. Rates on the app range from $20 to $75 per night, and homeowners can provide just the driveway or more, including electricity and bathroom, and kitchen facilities.
Beauchamp said most campervan owners were looking for more than just a concrete driveway for the night – they want privacy and an opportunity to interact with locals. “It’s about the experience,” he said.
An example is Longford’s Sheep Station, at Lake Okareka, in the Bay of Plenty. It is one of the most expensive properties on Campable but for their money, users get a holiday-style experience, with the owner often sharing a wine with her guests.
One of the most expensive and popular spots on the Campable app is Longford's Sheep Station, at Lake Okareka. Photo / Supplied
Other popular spots on the app include Kaikoura, which is on the main circuit for tourists in the South Island, and Rotorua. A few city addresses are also in demand. One is a suburban driveway in Khandallah, Wellington, which is popular with people who need a place to park before taking the early morning Cook Strait ferry the next day.
New Zealand Motor Caravan Association (NZMCA) members can also rent out their driveways or other spaces through the association, with the average rate around $5 per night.
Homeowners providing a driveway for cars or campervans should always check with their insurer first, as providing such services can increase risk of damage. Non-disclosure can result in insurance claims being declined.
Similarly, income from renting out a driveway needs to be declared. Garreth Collard, of EpsomTax.com, said it’s the responsibility of a homeowner to declare income to the Inland Revenue Department.
Parking spots in Auckland's inner west suburbs are highly valued. Photo / Ted Baghurst
“Also one needs to be aware of the GST threshold along with the main home exclusion rules under the bright-line test. Both could have significant tax implications at time of sale,” he said.
Homeowners should always check to see if they need to obtain resource consent due to the location, nature of the site activity, and any other local planning requirements. Each council will have different rules.
Michael Dobie, communications team leader at Thames Coromandel District Council, said there are rules around renting your driveway or part of your property for a campervan or caravan.
“Renting your driveway or part of your property to campervans is a permitted activity in several zones in our Proposed District Plan. Up to two certified self-contained camping vehicles are allowed. A situation with more than two visitor vehicles would require resource consent as a discretionary activity,” he says.
“For anyone thinking of carrying out this activity, it is important that they understand that there are a range of other permitted standards that would also need to be met, and in particular, it is important to ensure any existing vehicle parking on site is not displaced by the campground activity.”
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