Parking spaces are all so often overlooked as a worthwhile investment in the real estate industry. Yet, there could be more to that vacant lot than meets the eye!
Now more than ever, more people own cars. The number of ride-share users has also grown enormously in recent times.
Ultimately, car owners, users, and property owners share one need in common. Security!
Let's explore the surprising realities and substantial benefits of owning your own parking area.
Smart Reasons to Buy a Parking Lot
1. It's Cheaper than Public Parking Overtime
Imagine the cost of paying for public or paid parking every day. In the long run, such expenses can gradually accumulate into surprisingly significant amounts.
Owning your own parking space inherently saves on this expenditure, possibly leaving more savings in your hands over time. That's a less-known but real benefit of private car park ownership that even commercial real estate investors could tap into.
2. Easy Control/Monitoring for Who Enters or Leaves Your Property
With your own parking lot, you maintain total control over who goes in and out of the property. Installing systems like parking gates and arms can make this management even more efficient and effective.
Gate systems not only provide added security but also foster privacy, which might be highly attractive for potential renters or buyers.
3. Creating an Extra Income Stream Effectively
Simply owning a large parking lot offers investment opportunities. For instance, you could choose to rent it out or offer park-and-pay services.
Alternatively, for property in a prime location, you could accommodate local businesses by allowing them to use the space for special events.
All these avenues have the potential to create a steady and profitable income stream from your parking lot.
4. Guarding Against Future Parking Issues
If you dwell in city centers or commercial areas, it's likely you've witnessed the progressive scarcity of parking space. As urban development continues and population growth accelerates, parking space becomes even more precious.
Investing in your own parking space now could save you from having to scramble for a spot in the future. It's a proactive way of guarding against potential future stress and hassles related to car parking.
5. The Role of Parking Space in Home Valuation
We can't ignore that ample parking space contributes to the market value of a property. Especially in urban areas where such spaces are scarce, owning one is likely to increase the worth of your home.
For real estate investors, this addition could mean a significant amount in return on investment once it's time to sell.
6. Benefiting From the Growing Car Ownership Trend
As mentioned earlier, the car ownership trend and the use of ride-sharing services have taken a steep curve upward in recent years. This surge means that the demand for parking spaces has followed suit.
In line with this growing need, possessing your own parking lot could not only be convenient but also financially beneficial in our current times.
To benefit from this trend, you could offer:
- Hourly or daily paid parking services
- Monthly rentals for consistent income
- Event-specific rentals during nearby major events
- Charging stations for electric cars to attract a specific market of vehicle owners
- Collaborate with ride-sharing or delivery services by offering reserved spots.
7. Mitigating City Development Impact with Parking Lots
Fast-paced city development often comes with complexities, such as increased traffic and diminished parking options. Owning a parking lot eases this pressure while also providing a valuable service to the community.
Proper maintenance like keeping your parking lot clean, free of potholes or cracks, and installing bright parking lot lights could potentially even enhance the appeal of your property to potential buyers or tenants.
A well-lit parking area often promotes security and attracts more users, which indirectly boosts the income generated from the space.