A Garage and Parking Space Lease Agreement is a legal contract between a landlord and a tenant for the letting of a non-residential space such as a lock-up garage, a parking bay, a car port, or a storage unit with parking provision in England and Wales. Unlike an Assured Shorthold Tenancy, which applies to residential dwellings under the Housing Act 1988, a garage or parking space lease is a commercial or non-residential letting that is not subject to the housing legislation governing private residential rentals.

This distinction is critically important for both landlords and tenants. Because the Housing Act 1988 does not apply, the Tenant Fees Act 2019 deposit caps (which limit residential tenancy deposits to five or six weeks' rent) do not apply to garage and parking lettings. Equally, there is no requirement to protect the deposit in a government-approved tenancy deposit scheme, no obligation to serve prescribed documents such as the Energy Performance Certificate or the 'How to Rent' guide, and no restrictions on the notice required to terminate. The parties are therefore free to negotiate and agree on deposit amounts, notice periods, and termination provisions between themselves.

A garage or parking space lease may be granted for a fixed term, such as six months or one year, or on a periodic (rolling monthly) basis. If no written agreement is in place, a periodic tenancy at will may arise by implication, which can make it difficult for either party to enforce their rights or to terminate the arrangement on clear terms. A written agreement therefore provides both parties with certainty and avoids disputes.

Garage and parking lets are common in urban areas where on-street parking is scarce, in residential developments where garages are sold or let separately from flats, and in commercial settings where businesses need parking for vehicles or storage for equipment. Our template is suitable for all these scenarios in England and Wales and can be adapted for fixed term or rolling monthly arrangements with ease.

A Garage and Parking Space Lease Agreement should be used in England and Wales whenever a landlord lets a garage, parking bay, car port, or similar non-residential space to a tenant for a rental fee, regardless of whether the arrangement is for a fixed period or on a rolling monthly basis. Without a written agreement, disputes about rent, deposit, responsibility for repairs, and notice to terminate are far more difficult to resolve.

This agreement is particularly important in the following situations. First, where the garage or parking space forms part of a residential development and is let separately from the associated flat or house. In this case, the tenant of the garage may be a different person from the residential tenant, or the residential tenant may wish to sub-let the garage independently. A separate written agreement for the garage prevents confusion about which obligations apply to which property.

Second, where a private individual owns a standalone garage or driveway and wishes to let it to a neighbour or a third party for parking. This is increasingly common in urban areas where parking is at a premium, and a written agreement ensures that the landlord can recover possession on clear terms and that the tenant understands their obligations regarding permitted use and care of the premises.

Third, where a business owns a number of parking spaces and wishes to let them to employees, customers, or third parties. In this scenario, clear terms about permitted use, notice, and liability are especially important.

Fourth, where a garage is used for storage rather than (or in addition to) parking. A written agreement specifying what may and may not be stored — for example, prohibiting flammable liquids or hazardous materials — protects both parties and may be relevant to the landlord's insurance obligations.

Landlords should note that while the residential tenancy deposit scheme rules do not apply to garage lets, it remains good practice to document the condition of the premises at the start and end of the tenancy using a simple inventory or schedule of condition, to minimise disputes about deposit deductions.

A well-drafted Garage and Parking Space Lease Agreement for England and Wales should include the following key elements:

1. Parties: The full legal names and addresses of the landlord and tenant. If the landlord is a limited company, the company registration number should be included.

2. Description of the premises: A precise identification of the garage, parking space, or storage unit being let, including its address, unit number, and any relevant description (for example, 'single lock-up garage with roller shutter door').

3. Permitted use: A clear statement of the purpose for which the premises may be used — for example, parking of a private motor vehicle only, or parking and storage of non-hazardous goods. Restrictions on the storage of flammable materials, hazardous substances, and commercial goods should be included.

4. Term: Whether the lease is for a fixed term (with a specified start and end date) or a periodic (rolling monthly) arrangement.

5. Rent: The monthly rent amount, the day on which it is payable, and the payment method. The agreement should also address the consequences of late payment, including any interest charge.

6. Security deposit: The amount of any deposit, the conditions on which deductions may be made, and the period within which the deposit must be returned after the tenancy ends. As noted above, the statutory deposit protection and cap rules do not apply to garage lets.

7. Tenant's obligations: Including keeping the premises clean and tidy, not storing hazardous materials, not subletting without consent, not carrying out alterations, and notifying the landlord of damage.

8. Landlord's obligations: Including allowing peaceful enjoyment, keeping the structure of the premises in repair, and maintaining access routes.

9. Notice to terminate: The written notice required from either party to bring the agreement to an end. One calendar month's notice is standard for a rolling monthly lease.

10. Liability: A clear statement that the tenant parks and stores at their own risk, and that the landlord is not liable for loss, damage, or theft except where caused by the landlord's negligence.

11. Governing law: England and Wales, with the exclusive jurisdiction of the courts of England and Wales.