A Brief Introduction About the Parking Lease Agreement
A parking lease agreement is an agreement for renting out a parking space from the owner. This agreement is used to lay down the various details regarding the parking spot and how it shall be used. The rights and obligations of the parties involved shall be laid down in this agreement. It is not mandatory to create a written agreement every time a parking spot is leased; however, it is recommended to do so to protect the interests of both parties.
This agreement may also be known as a parking space rental agreement, a parking spot rental agreement, or a parking space lease agreement.
Who Take the Parking Lease Agreement? – People Involved
A parking lease agreement is entered into between the owner of the parking space and the person who wishes to rent it from the owner. The parties are known as the “lessor” and the lessee.”
Purpose of the Parking Lease Agreement – Why Do You Need It?
The main purpose here is to write down the terms under which the parking space lease will function and the duties of the lessee. Whenever a parking spot has been leased to a particular person, it is imperative to create such an agreement between the parties as this serves as solid evidence of the space having been leased. If two or more individuals agree to share particular parking space, they can enter into a shared parking agreement.
This agreement serves as a record of the mutual understanding between the owner of the parking spot and the person who wants to hire or rent it to use it for his use. This agreement is proof of both the parties agreeing to the said terms and conditions.
Contents of the Parking Lease Agreement
Like any other agreement, a parking contract must include the names of the parties who are entering into the contract, the date on which the agreement is created and the territory in which the agreement shall be operative.
The agreement should mention the exact location of the parking space. This includes the detailed address of the spot and the parking number. The term of the lease must be mentioned. It can be for one year, or it can also be a month-to-month lease.
The amount of rent must be stated in the contract itself. The date by which the rent is due and what penalties shall be applicable in case the rent is paid late by the lessee must be stipulated.
The liability clause is essential in such agreements. The owner shall choose to insert a clause which states that he shall not be responsible for any mishap while it is parked in the leased space or if any item is stolen from his vehicle.
[Also Read: Basement Rental Agreement ]
How to Draft the Parking Lease Agreement?
Below mentioned steps should be taken while drafting a parking lease agreement:
- The first step in the drafting of this agreement is for the parties to conduct negotiations amongst themselves to decide all the important terms such as the term of the lease, how much rent will be payable by the lessee, rights, and obligations of both parties, etc.
- The agreement must provide for possible breaches of the clauses of the agreement such as non-payment of the rent or violation of any obligation.
- After the agreement has been drafted, it must be signed by the parties.
Negotiation Strategy
- While this arrangement is being created between the owner and lessee, both parties will try to protect their interests as much as possible and limit their liability.
- The negotiations must ensure that both parties get a fair deal.
Benefits and Drawbacks of the Parking Lease Agreement
The following are the benefits and drawbacks of having a parking lease agreement:
- A huge benefit of having this agreement in place is that it provides solid evidence of the existence of such a lease arrangement between the owner and the lessee.
- This can go a long way towards preventing conflicts about the payment of rent or fulfilling any other duty as everything is laid out in the contract itself.
- If the parties choose not to enter into this agreement, they might not have adequate remedies in case of a breach by either party.
What Happens in Case of Violation?
If the lessee does not pay his rent on time or breaches any of his obligations under this agreement, the lessor shall serve notice on him asking him to remedy such breach within a certain period(1). If the lessee does not do so, then the lessor has the right to terminate the lease agreement and take possession of the parking space. If the lessee continues to use the parking spot even after the agreement has been terminated, it will be considered as trespassing on private property. The lessor can have the lessee’s vehicle forcibly removed from the spot.
In conclusion, a parking lease agreement can be beneficial when a parking spot is leased or rented to a person. This agreement contains all the terms that the parties have mutually decided.