No matter what property you manage, parking is an important feature that requires careful consideration. Commercial unit tenants want to ensure they have enough parking spots available for their guests, and you want to follow through with their wishes to avoid any future challenges and keep tenants.

Knowing how much to charge tenants for parking spot rentals can help you earn revenue to keep the lots in a quality condition. Explore these factors that help determine how much to charge for parking spaces and the value parking adds to a commercial property.

How to Determine Parking Space Rental Pricing

Charging for parking spaces helps ensure commercial properties stay well-managed. However, knowing what price to charge can take time and effort. Overcharging could negatively affect how many tenants have an interest in a property, while undercharging would take away property revenue.

Here are some factors to consider when deciding a price for the parking lot on a commercial property you manage:

1. Parking Ratios

The number of spots available for tenants and their guests can play a significant role in their decision to rent at a property. A parking ratio depicts the number of parking spots available for each property, often per the property type and its square footage. Typically, tenants will prefer renting from properties with higher parking ratios.

A parking ratio may also be affected by local regulations. Depending on the property’s area, the site may have more or fewer spots allotted because of the surrounding parking areas and the traffic of the location. Consider local zoning ordinances and the type of commercial property you manage when determining an adequate parking ratio.

Ensuring a property has enough parking spots can be an investment, so renting parking spaces to tenants is beneficial. The parking ratio a building has can affect the pricing. Tenants will be more interested in a property with ample parking space, meaning the rental price can be a bit higher to reflect that. A property with a lower parking ratio isn’t providing as much of an amenity, so the rent price would be lower.

2. High-Traffic Areas 

Another factor that can help determine parking space rental pricing is the traffic a property receives. A parking lot with less space than the community’s projected traffic may be in deficit. Charging a smaller fee for parking can help eventually generate revenue to expand as needed. If a property provides parking in a high-traffic area, it’s meeting demand while also being in a prime location, making a higher rental fee a justifiable choice.

3. Parking and Property Locations

In addition to how much traffic a property receives, the location of the parking lot and property matters. In larger cities or in prime business areas, parking is often a more expensive commodity. If a commercial property is somewhere less urban, parking prices may be lower. 

Consider what nearby properties charge their visitors for parking, as well — it can be beneficial to be somewhat more affordable than their prices. But avoid charging tenants extremely low rental rates, which can impact revenue and lot upkeep.

The type of parking is also a factor. Commercial parking garages have the benefit of being covered and may feature other benefits like security personnel, lighting and camera surveillance. Property managers may charge commercial tenants more for parking in these structures because of these amenities.

4. Americans With Disabilities Act Compliances

All parking lots must comply with the Americans with Disabilities Act (ADA). If tenants want a certain number of spots, they must also have a specific number of accessible parking spots. For every 1-25 spaces, there must be at least one accessible parking space — this number increases with a lot’s number of parking spots. Additionally, every one out of six accessible spaces must be suitable for vans. 

Taking into account the number of accessible spots a tenant prefers or requires for their parking can contribute to the price charged for renting parking spaces. ADA-accessible parking spaces are a must, so including their count when distributing the number of spots to each tenant could factor into to the rent price. 

5. Property Taxes and Financing Costs

Whether the rental property has parking or you’re looking to rent out spots in a commercial parking garage, other components like property taxes and financing expenses also factor into the price set for parking. Taking care of the lot to ensure the parking spaces are well-managed can be costly. Charging parking rent to commercial tenants helps offset some of the expenses of maintaining the parking area.

How Much to Charge for Parking

Ultimately, the parking space rent price you charge depends on the market and parking lot demand and supply. If there is a parking deficit in the area, charging for parking spot rentals is a must. The demand for spaces is up, and having a fee ensures the tenants will comply with the parking lot’s regulations.

Compare the standard fees other property managers are charging in the area to make yours more competitive. The price should reflect the rental property’s parking plan to ensure every tenant gets their spots. Considering all the factors that can affect parking rental space prices will help you find a reasonable price that pleases tenants while ensuring the property benefits, too.

How Much Value Does Parking Add to a Commercial Property?

Parking spaces are vital components of commercial real estate. Tenants and their customers value having close spots for easy access. When considering increasing a property’s value, consider updating the parking situation. Although parking is one of the most critical features of any property, it often gets overlooked.

A property’s parking situation can deter potential tenants from renting, impacting property manager revenue. More parking is always in demand, making the construction a valuable addition to any property. Many managers see the investment of new parking lots as a positive opportunity that can provide benefits in the long term, such as tenants having extended occupancy in the building.

Implementing parking plans can add value to the commercial space. Tenants find more value in properties that offer parking because it helps bring more customers in. Whether there are a few spots or dozens, tenants will be glad to have any that helps their business, meaning they’re more likely to be receptive to paying a parking rental fee.

Optimize the Value of Commercial Properties With ToriTom Services

Adding parking to a commercial property can increase the site’s value. Tenants can enjoy the benefits parking offers, while property managers can ensure tenants stay happy with the parking solutions. Charging a fee for parking lots would help maintain regular maintenance and ensure each tenant has the parking spaces they need for their customers.

To maximize the parking at a commercial property, ToriTom Services is here to help. We offer efficient and dependable parking lot paving installation services to help optimize the space and value at the property. Whether you need to reconfigure the current spaces or add more, our team can ensure the project gets done.

We’ll work with you throughout the entire process to create durable parking spots at the commercial lot. Your satisfaction is of the utmost importance to us, so we ensure you get everything needed to meet the parking needs of tenants and the property. To learn more, contact us today or call 941-932-2593 and ask about our installation services.