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How to make a Garage licence

For use in England and Wales only.

Rent out a garage with this garage licence agreement. Letting out your garage is a good way of raising extra cash, however, take care to put the terms in writing so that everyone is clear on where they stand. This licence deals with the key issues to help you formalise the arrangements and get the garage back when you want to.

Recently reviewed by Adnan Mahmood, Solicitor and Head of Legal, UK. 

This garage licence was last reviewed on 17 June 2022.

Use this garage licence:

  • when you want to let out a garage on a short-term basis

  • to allow a private individual to store a private motor vehicle and any personal belongings (ie household items other than a vehicle) in the garage

  • if the garage is located in England and Wales only

This licence template covers:

  • what can be stored in the garage

  • the licence fee

  • the owner's responsibilities

  • the licensee's responsibilities

  • how the licence can be ended

  • an indemnity from the licensee for all claims arising from the use of the garage

This garage licence is an agreement between the owner of a garage and someone who wants to rent the garage space to store a vehicle and or other personal belongings.

A licence grants personal permission for a licensee to occupy premises (like a garage). Unlike a tenancy, a licence does not give the licensee a legal interest or control over the premises.

Use a garage licence if you want to rent out your residential garage but don’t want the licensee (ie the person the garage is being licensed to) to gain tenancy rights.

Once completed, this licence is personal to the licensee and cannot be transferred to another person.

The garage can be used to store the licensee’s private motor vehicle (eg a car). The registration number of the vehicle can be set out in this licence. If the licensee wants to park a different vehicle in the garage, they will need your consent to do this.

The garage can also be used to store any inflammable, non-hazardous domestic household items (eg toys or clothes).

If the garage is at your address, this will be the address of the garage in the licence. If it is not at your address, you will need to provide the address of the garage in the licence. 

You should also attach a plan showing the garage to the licence.

You will need to decide how much (and how often) you want to charge the licensee for the use of the garage. This is known as the ‘licence fee’. 

The licence fee includes the cost of insuring the land and any services provided (eg cleaning the garage). The licence fee is exclusive of Value Added Tax (VAT). However, the garage user must pay any VAT that is due.

The length of the licence is known as the ‘licence period’. The licence is not for a fixed term (ie it does not have a specified end date). This means that it will run from the start date until it is brought to an end.

The garage licence can be brought to an end by either party giving notice to the other. Typically, notice to end the agreement is a short period of time linked to the payment of the licence fee (eg one month if the licence fee is paid monthly or one week if the licence fee is paid weekly).

The owner can also immediately end the licence if the licensee breaches any of their obligations under the licence.

This garage licence includes an indemnity from the licensee. The licensee indemnifies the owner of the garage against: 

  • costs and claims arising from their use of the garage, and 

  • any breach of their obligations under the licence

The garage is used at the licensee’s risk during the licence period.

Ask a lawyer for:

  • a garage that is linked to business premises

  • a licensee that is a company

  • long term arrangements

  • a garage located outside England and Wales

This licence is governed by the law of England and Wales.

Other names for Garage licence

Garage contract, Licence to occupy a garage, Garage licence agreement, Garage lease contract, Garage licence agreement, Garage rental agreement, Garage rental contract.

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