Managing parking lot properties can be an exciting and lucrative endeavor. Whether you’re looking to directly own a parking lot or passively invest in one through a third party, understanding some of the key fundamentals behind parking lot property management is key to a positive return on investment and smooth operation of the rental property. Below we take a deep dive into everything you need to know about managing parking lot properties.
Parking Property Management Definition
Parking property management is a specialized type of real estate management that deals with the comprehensive oversight of parking-related properties such as surface lots and parking garages.
Parking Property Management Services
The primary goal of parking property management is to ensure that the property is secure, easy to use, and profitable. While each parking facility is different, you’ll need a management team that can handle the unique circumstances of your lot. For instance, a gated facility near a local sports arena will have radically different needs than a beachside parking lot with self payment digital parking meters. Regardless of the type, strong revenue and cost management are paramount skills for parking lot property managers to possess. Below we take a look at some of the most common services provided by property management companies who specialize in parking lots:
- Customer Service and Emergency Support
- Automated Gate Payment & Repair Support
- Marketing and Advertising
- Parking Rule Enforcement and Towing
- Revenue Management and Reporting
- Safety and Risk Management
- Facility Maintenance and Property Upkeep
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Parking Property Management Fees
The average fee to manage a parking lot typically ranges between 4% and 10% of the gross revenue, depending on the complexity of the lot (i.e. unattended surface lot vs automated parking garage). Contracts to manage parking properties can be a variation of fixed fee, or a percentage of rent where the property management company is paid a percentage of revenues. Be sure that whatever type of property management company you choose offers full financial reporting alongside excellent in-house capabilities and professional staff to ensure you’re able to maximize the value you get from your parking property.
Parking Property Management Software
Parking property management software helps owners, managers, and customers handle various aspects of administration such as payment collection, customer management, and maintenance. The recent push for parking facilities to integrate more technology into their operations has led to substantial gains in both profitability and efficiency.
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