Parking is scarce in most condominium buildings, so it’s not surprising that some owners want to rent out condo parking space. While it might sound simple, many actually get confused when it comes to condo ownership. Whether or not condo owners can rent out their parking space depends on the governing documents.
Can Owners Rent Out Condo Parking Space?
Condo associations have some similarities with single-family neighborhoods, but they also have many differences. In single-family HOAs, homeowners can usually park their cars in a garage or driveway. Some even park right on the street.
On the other hand, in condominiums, owners tend to share common spaces, including parking areas. Some units may have designated parking, but it is more typical for a condo association to have a shared lot.
This leads to the question of whether or not owners can rent out condo parking space. To answer this, they must first understand who owns the space.
There are three types of parking ownership among condo associations.
Parking Spaces as Common Elements
If the parking spaces are considered common elements, then that means the association owns them. As a result, no single owner has control over these spaces. The board is in charge of managing these parking spaces. Residents, on the other hand, can use them on a first-come, first-served basis, or through assignments.
Since owners don’t own common elements, parking spaces that fall under this category aren’t available to rent out. Simply put, owners can’t rent these out to others for extra income. If they attempt to do this, they might violate condo rules and face certain penalties.
Parking Spaces as Limited Common Elements
In many condo communities, parking spaces are considered limited common elements. This means that the association still owns them, but the board sets aside certain spaces for the exclusive use of specific units. The right to use the space comes with the unit, not as separate property.
While the owner has exclusive use, they don’t actually own the space. Because of that, associations don’t automatically allow condo parking space lease. Unless the condo declaration or rules say otherwise, subleasing these spaces can count as an unauthorized use.
Parking Spaces as Legal Titles
Some condominiums go a different route and assign legal titles to parking spaces. In these cases, each space is considered a separate property or parking unit.
Owners who hold title have full condo parking rights. They can sell, transfer, or rent them out just like a condo unit. That said, even then, it depends on the governing documents. The association may still require approval or limit who can rent the space.
Additionally, owners are also responsible for any maintenance and repairs for their parking units. If there are taxes or fees associated with the units, owners must pay them out of pocket as well.
Is Renting Out a Condo Parking Space Possible?
Apart from ownership, there are two main factors that can affect an owner’s ability to rent out a condo parking space. These are state laws and the condo’s governing documents.
State Laws
Most state laws don’t say much about renting individual parking spaces. In Texas, the Texas Property Code Chapter 82, also known as the Texas Uniform Condominium Act, gives associations the power to manage common and limited common areas.
This means that an owner can’t lease a parking spot unless they legally own it. Each condo association has its own rules regarding usage and ownership, so owners should verify these things first.
Governing Documents
The governing documents are where the final answer lies. These include the CC&Rs, bylaws, and condo rules. Some buildings let owners rent out condo parking spaces to other residents, while others forbid it entirely. Others may allow rentals but require written approval first. It’s always safer to review the documents or ask the board before signing any agreement.
Common Parking Rules in Condo Associations
Condo parking rules exist for good reason. They keep things organized, prevent disputes, and make sure everyone has fair access. Even if the association allows renting spaces, owners still need to follow these basic rules.
While associations can have varying rules, the most common ones cover the following.
1. Registration
Every vehicle parked on the property must usually be registered with the association. This helps management know which vehicles belong to residents and which don’t. They record details such as license plate, model, and color.
Unregistered cars can receive warnings or even be towed. Some condos enforce this rule strictly to stop outsiders from using resident parking areas.
2. Car Passes or Stickers
Many associations give residents decals, stickers, or hanging tags after a car is registered. Drivers must then display these clearly on the windshield or rearview mirror. These passes help staff tell which cars belong on the property.
Forgetting to display one can result in fines or loss of parking privileges. Temporary passes are sometimes available for guests, new owners, or contractors.
3. Assigned Parking
If the building has assigned parking, each resident gets a specific space. That spot is theirs to use, but not to lend or rent freely. Parking in someone else’s spot, even for a few minutes, can lead to a citation or towing.
Some boards will act quickly if it happens repeatedly. Anyone wanting to share or rent out an assigned space should first get permission from management or the board.
4. Guest Parking for Guests Only
Guest parking is for visitors only, not residents. These areas usually have time limits, and many associations track who’s parking there. Residents who use guest spots daily can be fined or towed.
If a visitor needs to park for a longer period, including overnight, they may need to provide their registration. Management will then issue them a temporary parking pass.
5. No Storing in Parking Spaces
A parking spot isn’t a storage unit. Owners can’t keep their bikes, boxes, furniture, or tools in parking spaces. Not only does it look messy, but it can also block access or violate safety codes.
Associations usually issue a warning first. If the resident ignores this warning, the board can fine the owner or remove the items from the spot. Clear spaces make the parking area safer and easier to maintain.
What Happens When Owners Violate Parking Rules?
When an owner breaks a condo’s parking rules, the board can pursue specific actions or penalties. Violations can include renting a parking space without the association’s approval. Under Texas Property Code Section 82.102, condo associations have the authority to enforce rules and maintain order.
Owners who violate the rules usually receive a written notice of the violation first. The board must allow the owner to attend a disciplinary hearing to share their side of the story. If the hearing results in a ruling against the owner, the board can impose a penalty. Penalties can include fines, suspension of privileges, and others.
If an owner refuses to comply, the board can take legal action. Since lawsuits can be costly and time-consuming, they should be a last resort for boards.
A Two-Way Street
Whether a unit owner can rent a condo parking space depends on the unit’s ownership type and the condo’s rules. Both board members and residents should familiarize themselves with their condo’s structure and governing documents to maintain order and avoid violations.
Graham Management offers exceptional condo management services to Houston communities. Call us today at (713) 334-8000, request a proposal, or contact us online to learn more.
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