February 2020
Parking can be an amenity for residents, a source of revenue to the community, or a privately-run enterprise. Ultimately, the decision comes down to deciding to allow the space to serve as an exclusive amenity for residents or choosing to monetize this asset.
A safe, well-run garage or lot is worth its weight in gold – and making smart choices as to its management can ensure it holds value for years to come. Parking remains a necessity. It can be hard to find and expensive. Making smart choices about parking can be advantageous.
Condo communities manage parking facilities in different ways:
- Parking may be an amenity paid for as part of monthly common fees. Spaces may or may not be reserved. Facility may be managed by the corporation or a third party.
- Parking may be space shared with public access. Building residents may receive discounted rates.
Some communities do not provide parking for residents. Those requiring parking may pay a monthly fee, discounted or regular price, to the third party managing parking.
Many communities have underutilized parking facilities. Some residents with multiple parking spaces may only have a single vehicle. Residents that rely on transit, bicycle or car sharing services may not use their parking space(s).
It is possible to retain parking for those who require it and convert excess space into revenue for the community.
- Some communities manage their parking facility in-house. Others choose to outsource its management to a third party that pays rent thus passing along responsibility for profitability. This third party would take on responsibility for collecting revenues and installing equipment.
- Allow residents with unused parking to rent their parking space privately through the management office under a rent sharing agreement. This ensures management can maintain safety and security for the area, and community, in accordance with their obligations.
At one time parking was a cash business. Today it is mostly automated with payment made primarily by credit or debit card. This makes revenues easier to verify and requires less staffing. New challenges include ensuring equipment is maintained and remains operational. Having a professional company manage parking facilities offers advantages that come with experience. Revenues can range from thousands to millions of dollars depending on location and size.
A condo corporation may not own, or choose to sell, their parking facility. This can provide the corporation with additional income or reduced operating expenses.
When a condo parking area is managed by a third party it typically involves a management contract. The condo board approves parking rates so as to maximize use and generate the greatest income. Some spaces may be guaranteed available for residents.
