Parking in busy cities and towns has become a nightmare, and with more demand for fewer spaces, the situation is getting worse. But a number of enterprising companies have come up with the idea of facilitating private rental contracts between people who own parking spaces, driveways or garages, and people looking for somewhere to park.

The idea is relatively straightforward. If you're looking for a parking space, you log on to one of the many parking rental websites that have sprung up in recent years (Your Parking Space, Park At My House and Park Let are just three of the companies offering this service). You type in the postcode of where you want to park (near your office, say, or a commuter-belt train station) and you will - with any luck - be presented with a list of local parking places, their availability and the cost of rental.

You then enter into a rental agreement with the space's owner. Availability is very much dependent on the owner's circumstances. Some people rent spaces that they don't use during working hours because they're at work themselves. Others rent out spaces on a 24-hour basis because they no longer have a need for a car. The possibilities are nearly endless: searching through the various websites you can find spaces that are available for just 30 minutes a day and other spaces that are on yearly leases with 24-hour access.

If you're the owner of a space: you have a small company with more spaces in the car park than you have employees; you have a driveway you don't use, or a garage that is surplus to requirements then you register with a website as a space owner. You fill in your postcode and set the terms under which you'd like to rent out your space. You can charge as little - or as much - as you like, but you should always be aware of supply and demand. If you live near shops and offices you are more likely to be able to attract a premium than someone whose driveway is a bus-ride away.

The website charges a percentage of the rental income (typically 15 per cent plus VAT).  Of course you don't need to use a space rental website in order to rent out your driveway - an ad in Gumtree or the classified ads pages of your local newspaper might also work - but you're less likely to find commuters driving into your area from elsewhere, and you'll have to sort out the paperwork (the space rental websites provide contracts that have been drafted by their lawyers).

Arguments for

Fewer emissions. Driving to a designated parking space uses less fuel than searching round the streets at rush hour (or snaking up the ramps of a multi-storey. It may negate the need for new multi-storey car parks, thus saving greenhouse gas-emitting concrete.

Revenue for the space owner. In these credit crunch times many people are looking at ways to supplement their income. Renting out a space is a relatively easy way to make money for very little effort (though you might have to tell the taxman, depending on your circumstances).

Convenience. Car parks aren't always situated close to where you are. But you might be lucky enough to find a parking space for rent that is within a stone's throw of work.

Arguments against

Security. Many people wouldn't like the idea of strangers parking in their driveway or garage. However, the space rental websites DO NOT give addresses out until the contract stage. Instead they show the space's proximity to a particular postcode.

Destruction of green space. Every year London loses green space equivalent in size to Hyde Park because of front gardens being paved over to create parking spaces. Schemes like these will encourage more homeowners to concrete their gardens.

Individual behaviour. It's the parking equivalent of buying something on an auction site or from a car boot sale. There's the nagging suspicion that you'll turn up one morning and the space is occupied or you might get in a petty dispute with the space's owner because you left your car five minutes longer than you ought to have done.

Related links

• Park At My House
• Parklet
• Your Parking Space 

Smart idea? Have your say...

Would you rent out your driveway for a little extra cash each week? Are you a commuter who might consider a scheme like this? Share your thoughts with us below.

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