Council Regulations

Council Regulations for Renting Out Your Space in NSW

Renting out an unused driveway, garage, carport, shed, yard or parking space can be a practical way to earn additional income. Before listing your space, it is important to understand that planning rules, strata by-laws, tenancy agreements and insurance requirements may affect how the space can be used. This guide provides a general overview for hosts in New South Wales and explains some of the checks you should complete before making your space available.

Do You Need Council Approval?

Whether council approval is required will depend on the location of the property, its zoning, the type of space being offered and the scale of the activity. Making one existing residential parking space or garage available may involve fewer planning considerations than operating a larger site used for multiple vehicles, commercial equipment or frequent customer access.

In New South Wales, some low-impact development may be classified as exempt development and may not require formal planning or construction approval when all relevant development standards are met. Other activities may require a Complying Development Certificate or a Development Application. You should not assume that an activity is exempt without checking the controls that apply to your property.

Common Types of Spaces

Driveways and Residential Parking Spaces

A private driveway or allocated residential parking space may be suitable for a car, motorcycle, trailer or other approved vehicle. Before listing it, confirm that the vehicle can enter and leave safely without blocking a footpath, shared driveway, emergency access point or neighbouring property.

Local controls may apply to vehicles stored on lawns, nature strips, unsealed surfaces or areas visible from the street. The frequency of vehicle movements, noise and the number of vehicles using the property may also affect how the activity is treated.

Garages and Carports

An existing garage or carport can provide convenient parking or storage, but the space should be suitable for the intended use. Clearly communicate its dimensions, access arrangements, clearance height, security features and any restrictions before accepting a booking.

Garages should remain accessible and free from hazards. Fire exits, utility equipment and access to adjoining areas must not be obstructed. Items that are dangerous, unlawful, flammable or unsuitable for residential storage should not be accepted.

Sheds and Enclosed Storage Areas

Before offering a shed or enclosed storage area, make sure the structure is weather-resistant, secure and appropriate for the items being stored. Consider ventilation, moisture, pests, flooring, electrical installations and the ability to access the space safely.

Additional requirements may apply where chemicals, fuel, machinery, batteries or other hazardous materials are involved. Hosts should clearly state which items are prohibited and should not accept anything that may create a safety, environmental or legal risk.

Backyards and Open Land

Backyards and open areas may be suitable for caravans, boats, trailers or equipment when access and ground conditions permit. Check that the area has a stable surface and that stored vehicles will not cause damage, drainage problems or unreasonable impacts on neighbouring properties.

Regularly accommodating numerous vehicles or operating the property in a way that resembles a commercial storage yard may require further planning assessment. This can be especially relevant where heavy vehicles, machinery or frequent movements are involved.

Rural Properties

Rural properties may offer more room for caravans, trailers, trucks, containers or equipment, but rural zoning does not automatically permit every type of storage activity. Larger or ongoing commercial operations may fall within a defined land use category and may require council consent.

Hosts should also consider bushfire access, vegetation, drainage, road conditions, environmental impacts and the ability of emergency vehicles to enter the property.

Commercial and Industrial Spaces

Commercial and industrial properties may already permit certain parking or storage activities, but the existing development consent and approved use of the site should still be reviewed. Requirements may apply to access, signage, operating hours, traffic movements, lighting, security, drainage, screening and fire safety.

Making a space available for a different purpose from its currently approved use may require a planning assessment or change-of-use approval.

Check the Zoning of Your Property

Every property in New South Wales is subject to planning controls. These controls may be established through a Local Environmental Plan, Development Control Plan, State Environmental Planning Policy or an existing development consent.

The zoning of your property helps determine which activities are permitted, prohibited or permitted with consent. Residential, rural, commercial and industrial zones can have different rules, and requirements may vary between council areas even when properties appear similar.

You can check basic planning information through the NSW Planning Portal or your local council’s online mapping system. For advice about a specific proposal, contact your council’s planning department and explain:

• The type of space you plan to make available.
• The intended use of the space.
• The number of vehicles or users expected at one time.
• The expected access frequency and operating hours.
• Whether any construction or alteration is proposed.
• Whether the activity will generate income on an ongoing basis.

Understanding NSW Approval Pathways

Exempt Development

Exempt development covers certain minor and low-impact works that do not require planning or construction approval when every applicable standard is satisfied. An activity is not automatically exempt simply because it appears small. Property restrictions, heritage controls, bushfire conditions, land zoning and other standards may affect eligibility.

Complying Development

Complying development provides a streamlined approval pathway for certain straightforward proposals that meet predetermined standards. Applications may be assessed by a council or registered certifier. Not every property or proposed use will qualify for this pathway.

Development ApplicationA Development Application may be required where the proposed activity needs development consent and does not qualify as exempt or complying development. The council will assess the proposal against the relevant planning controls and consider potential impacts on surrounding properties and the local area.

Strata and Community Title Properties

If your property is part of a strata or community scheme, the scheme’s by-laws may affect whether a garage, storage cage or parking space can be rented to another person. By-laws can regulate parking, access, security, noise and the use of common property.

Before listing a strata space:

• Confirm that the space belongs to your lot and is not visitor parking or common property.
• Review the current strata by-laws for parking, storage, leasing and security restrictions.
• Speak with the strata manager when the arrangement involves shared access areas.
• Check access device rules before giving another person a key, remote or security fob.
• Confirm insurance arrangements for the space and shared property.

Visitor spaces, emergency access areas and other common property should not be listed without the required authority. Residents are generally expected to use the parking spaces allocated to them and comply with their scheme’s by-laws.

Rules for Tenants

If you rent the property, obtain written permission from your landlord or property manager before listing any part of it. Your residential or commercial lease may restrict subletting, licensing, business activity or allowing third parties to access the premises.

Permission should clearly cover the particular driveway, garage, parking bay or storage area you intend to offer. Approval from a landlord does not replace any separate council or strata requirements.

Insurance Considerations

Do not assume that a standard home, contents, landlord or strata insurance policy automatically covers paid parking or storage arrangements. Earning income from a space or allowing third parties onto the property may affect your coverage.

Before listing, contact your insurer and describe exactly how the space will be used. Matters to discuss may include:

• Public liability coverage for people entering the property.
• Damage to vehicles or stored belongings while on the premises.
• Theft, fire, flooding and weather damage affecting the space.
• Damage to gates, doors or access equipment caused by a renter.
• Commercial-use exclusions within an existing policy.
• Insurance responsibilities that remain with the renter.

Renters should maintain appropriate insurance for their own vehicles and belongings. Hosts and renters should each understand what is and is not covered before an arrangement begins.

Safety and Access

Hosts have a responsibility to take reasonable care when allowing people to access their property. Inspect the area before listing it and address obvious risks such as damaged surfaces, poor lighting, loose materials, low clearances, unsafe gates or obstructed pathways.

Provide accurate information about:

• Entry width and height for vehicles.
• Surface type and condition of the parking or storage area.
• Access hours and notice requirements.
• Security arrangements, including gates, locks and cameras.
• Shared access points used by other residents or businesses.
• Items or vehicle types that are not permitted.

Access should not interfere with emergency exits, fire equipment, utility services or neighbouring properties.

Being Considerate of Neighbours

Even where formal approval is not required, the use of a space should not create unreasonable impacts on the surrounding area. Consider vehicle noise, headlights, early or late access, idling, deliveries and the appearance of stored vehicles or equipment.

Setting clear access hours and renter expectations can help prevent disputes. A small, well-managed arrangement is less likely to create concerns than frequent vehicle movements or activity that changes the residential character of the property.

Income and GST

Money received from renting a parking or storage space may have taxation implications. Keep accurate records of payments received and expenses associated with the activity.

Under current Australian Taxation Office guidance, an enterprise is generally required to register for GST when its GST turnover reaches $75,000 or more. The threshold applies to the relevant total GST turnover, not necessarily the income from one space alone. Tax treatment will depend on your circumstances, so obtain advice from a registered tax professional when required.

Before Listing Your Space

• Check your local planning controls and confirm whether approval is required.
• Review your strata or community by-laws where applicable.
• Obtain written landlord permission if you are a tenant.
• Discuss the arrangement with your insurer and confirm your coverage.
• Inspect the space for hazards and complete any necessary maintenance.
• Measure the space accurately, including access width and clearance height.
• Set clear access arrangements and reasonable operating hours.
• Specify prohibited items and activities in your listing.
• Consider the impact on neighbours and shared access areas.
• Keep records of income and expenses for taxation purposes.