Between purchasing land, construction, and operating costs, each spot of a parking lot needs to bring in a certain amount of cash to turn a profit for the lot owner. Is structured or surface parking better for your business? You will find the answer to this and other essential questions by studying the 10 tips below.
1. Build the Right Parking Lot
Structured or surface? Deciding whether or not the costs of building up are worth the benefits, look to the Victoria Transport Policy Institute. According to their research, a structured parking facility is only cost effective if the land you are building on is worth $1 million/acre or more. Otherwise, it makes more sense to build a flat lot.
2. Save on Construction Costs
Construction costs depend on many variables, including: the size of the lot, the shape of the land (if irregular it will cost more), the number of levels, the topography (if the land is sloped or has poor soil it means more work), the aesthetic look, and the location. Be sure to find good, solid land and a simple, yet attractive, aesthetic before you even start.
3. Find Green Tax Breaks
Environmental costs add up – from green space and wildlife habitat loss to the increase in greenhouse gases created by construction and increased car activity, it is important to find out how to build green and where you can receive tax breaks as a result.
4. Make Deals with Nearby Stores
When you shop at the mall, many stores offer a free hour of parking for every purchase you make. These stores benefit from having parking nearby, and you benefit from their customers. Explain to neighbors that you will be providing additional parking in the area and see if they are interested in striking a deal!
5. Price Each Spot Correctly
A parking spot is typically 8-10 feet by 18-20 feet. And the average cost of a parking space in America ranges from $15,552 to $32,000 for the lot owner. Given these basic statistics, you can begin planning how much you need to charge per spot per customer.
6. Figure out Your Costs
Operational costs include cleaning, lighting, maintaining, repairing, landscaping, dealing with snow and other weather, insurance, gates, fee collecting, labor, administration, and security. These costs add up to $200 to $800 per space a year. Get a handle on what this means for your pricing structure and where you can cut costs.
7. Make Money on Extra Spaces
Oops! You made your lot too big. If all your spaces aren’t being used, consider renting them out to other companies, or if there is enough space, sell the land entirely!
8. Buy Proper Equipment
Whether you’re constructing a lot in New York or Toronto, security gates and other equipment will come in many different variables for many different costs. Do your research ahead of time as to not make a rash decision last minute on this equipment.
9. Use LED Lights
LED lights will save you energy, money, and maintenance costs. The bulbs use much less electricity than regular lights and last much longer. Using these lights might also get you a tax break!
10. Outsource Some Maintenance
Maintenance crews on salary can use up a large bundle of money that you may not have as a new property owner. Instead, research property maintenance companies in your area. They will sweep, power wash, do light repair, and offer flexible schedules.
Now you’re ready to get started on your parking lot – keep your energy use and costs down and your profits will certainly soar!
Featured image source flickr.com/photos/bernardboygenius/5816038636/