How to Open Your Own Parking Business
Starting a parking business can be a great way to earn passive income. Many restaurants and tourist attractions use valet services to park visitor's cars. Parking garages and lots are prevalent in nearly all urban locations throughout the United States. People living and working in these areas need a place to park their cars while at work or even at home. If placed in a high-demand area, parking services have the potential to be very lucrative. For example, if you own an urban lot that has 50 parking spaces and you charge $10 per day, you would make $500 per day. If you multiply that amount by 30 days in a month, you would gross $15,000 each month, if you were able to fill each spot each day of the month.
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Instructions
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Acquire property for your parking lot. If you own a vacant piece of property that is suitable for use as a parking lot, you are already one step ahead. If you need to acquire land you have several options: purchase an existing lot or parking garage, buy a foreclosure home and have the property cleared, or pave an undeveloped lot. Choose a location in a high-traffic area; urban areas are best suited for this type of business. You may also consider space near college campuses, sports arenas, airports and busy tourist attractions. Before you make a purchase, make sure that the land you are purchasing is zoned "commercial" or "mixed use." You can check on property zoning status at your county courthouse.
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Prepare your property for parking. Your parking lot or garage must be in a condition that is appropriate for parking vehicles. If the pavement is in poor condition, you should have it repaved or have any potholes filled in. If car owners will be allowed to self-park, you should have lines painted on the pavement denoting the boundaries of each parking space. Additionally, if your property is located in a high-crime area, consider fencing in your lot and setting up a surveillance camera to view the area.
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Determine how you will charge patrons. Most parking lots offer hourly and daily rates, while others offer leases to patrons for an extended time. You can offer any combination of rates that you see fit for your lot. Post a sign on your lot that clearly states the lot's prices and policies. If you are not available to act as an attendant, you will need to hire an employee to collect payment and make change.
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Purchase business liability insurance. Liability insurance protects you and your business if a patron is injured on your property or suffers property damage as a result of your negligence. Business liability insurance can be purchased from any major insurance provider. Check first with your homeowner or car insurance policy carrier as many insurance companies offer discounts for multiple policy holders.
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References
- Photo Credit full parking lot image by Aaron Kohr from Fotolia.com
