Renting Your Lawn for Event Parking: A Homeowner's Guide to Income and Liability

Homeowners near major sporting events can generate significant short-term income by renting their lawns and driveways for parking. During the 2025 U.S. Open at Oakmont Country Club, residents charged spectators $20 to $80 per spot. However, this seemingly easy side hustle requires careful navigation of local ordinances, homeowners association (HOA) rules, and insurance implications to avoid costly fines and legal issues. This guide outlines the critical considerations for leveraging your property's location for event parking revenue.

What are the Legal and Zoning Considerations for Renting My Lawn for Parking? The most critical first step is understanding your local laws. While there are no federal laws against parking on your own property, many municipalities have zoning ordinances that prohibit parking on unpaved surfaces like lawns. States like California and New York have specific regulations against this practice. You must contact your local zoning or code enforcement office to verify what is permitted. Operating against local ordinances can result in substantial fines that quickly erase your profits. Based on our experience assessment, the legal risk is the highest barrier to entry for this side hustle.

How Do HOA Rules Impact My Ability to Offer Event Parking? If your property is governed by a homeowners association (HOA), a private organization that sets rules for a community, you must review its covenants, conditions, and restrictions (CC&Rs). Many HOAs have strict rules to maintain curb appeal and landscaping integrity, explicitly prohibiting parking on lawns or in driveways for commercial purposes. Violating these rules can lead to fines or legal action from the HOA board. It is essential to obtain written permission from your HOA before offering any paid parking.

What Insurance Liabilities Should I Be Aware Of? Allowing paying customers onto your property creates significant liability exposure. Your standard homeowners insurance policy is unlikely to cover commercial activities like running a parking lot. If a spectator's car is damaged or, more seriously, if someone is injured on your property, you could be held personally liable for all costs. Contact your insurance provider to discuss if you need a separate commercial liability policy or a rider to your existing policy. This step is non-negotiable for protecting your financial assets.

Is the Income from Renting My Parking Spots Tax-Free? A common point of confusion is the "Augusta Rule" (Section 280A(g) of the Internal Revenue Code). This rule allows homeowners to rent out their primary residence for up to 14 days per year without having to report the income to the IRS. However, this typically applies to the rental of the home itself, not just the land. The IRS may not view parking cars on your lawn as qualifying for this tax exemption. We strongly advise consulting with a tax professional to understand your specific reporting obligations.

Conclusion: Practical Steps for a Profitable and Safe Parking Hustle Transforming your property into a temporary parking lot can be a profitable venture, but success depends on due diligence. Always prioritize checking local laws and HOA rules first. Protect yourself by investigating your insurance coverage thoroughly before the first car arrives. While the experience can be enjoyable and financially rewarding, as reported by homeowners near the U.S. Open, failing to address these key areas can turn a quick buck into a significant financial setback.