We've been tracking AB 1317's approach for months, alerting property managers about the upcoming changes to California's parking regulations. Now that it’s official, it’s time to brush up on the requirements and see how your properties stand to benefit.

Quick refresher on California Law AB 1317

Why this law exists

AB 1317 is part of California's broader push for housing affordability and sustainability. When parking is bundled, car-free residents are forced to subsidize parking they don't use. 

Research shows that the cost of bundled garage parking for renters is approximately $1,700 per year, adding about 17 percent of a unit's rent. There are about 708,000 California households without a car who have a garage parking space they’re forced to pay for with bundled rent. 

What the legislation requires

Instead of bundling parking into the price of a unit, you'll need to charge for it separately through a parking rental agreement or lease addendum.

Who must comply

• Residential properties with 16+ units with a certificate of occupancy on or after January 1, 2025
• The legislation applies to select California counties: Alameda, Fresno, Los Angeles, Riverside, Sacramento, San Bernardino, San Joaquin, Santa Clara, Shasta, and Ventura

What this means for your lease-up right now

If AB 1317 applies to your property, follow these 5 easy steps:

1. Create separate parking rental agreements or lease addendums
2. Establish prices for parking - in your weekly comp calls, start asking around for parking prices and any specials they have for parking to stay competitive
3. Give tenants the right of first refusal for parking spaces
4. Implement a system to track payments i.e. rentable items, or even better, a parking management system synced with your CRM
5. Keep in mind you have the option to revoke access to a parking space after 45 days of non-payment each month

The hidden opportunity

For lease-ups, AB 1317 isn't just a compliance checkbox — it's a chance to get your parking management strategy right from the very beginning.

By unbundling the cost of parking from rent, you’re revealing the true cost of parking. Residents will inevitably self-select, either deciding to pay a premium for a spot or opting out of a spot they don’t truly need. This keeps your utilization balanced and helps you avoid the headache of shortages. 

This is especially beneficial for lease-ups with low parking ratios. When you’re already limited on parking, every spot counts.

Additionally, for leasing managers in particular, there’s an added bonus when it comes to unbundling parking from rent: You can offer one-time parking specials to prospective residents, helping convert tours to leases.

A range of prices for every budget

Beyond utilization, unbundling parking from rent poses an opportunity to level up your pricing strategy. That covered spot near the entrance? It's worth more than the one on the third floor of the garage. The EV charging spot? Premium pricing. Not all spots are created equal; your pricing should reflect that. 

This was a gamechanger for a luxury Willow Bridge lease-up who came to us in need of a sophisticated pricing strategy. With the help of Parkade, they replaced  their flat-rate strategy and instead priced each parking spot based on location and features. Rather than a flat fee for every spot, prices now range from $75 – $150. 

Six months into the lease-up, 75% of residents are opting to pay above the minimum price for parking, resulting in a $103 per spot average instead of the projected $91. This 13% lift is just one of several new parking revenue streams for the lease-up.

What about stabilized buildings?

For stabilized buildings, there are still many reasons why parking should be unbundled from rent, even if AB 1317 doesn’t require it. 

Unlock more parking by charging for it

If you’re not charging for parking, chances are your residents are taking far more parking than they need. You may be experiencing a parking shortage, and if you’re in an urban area, this "free for all” approach is likely leading to rampant parking abuse. 

Case in point: One of our downtown LA properties went from a 15-person parking waitlist to a 10-spot surplus just by implementing paid reserved parking. No construction needed — just smarter management.

Apply changes to new leases only

To unbundle parking at a stabilized building, you’ll want to double check your lease contracts before making any changes. Many contracts often give you the option to exercise a 30 day notice to revoke any included parking.

From there, you can simply add an addendum to new leases and renewals, and be sure to communicate early and often with existing residents on the changes.

Beyond compliance: The full parking management picture

Many properties may not take AB 1317 seriously because they don't think the state will enforce it. But that’s overlooking the true urgency here: to improve parking for everyone involved, including residents, property management, and ownership.

With the right parking management solution, you can:

• Sync parking with your CRM: Automatically grant residents the option to book parking upon move-in based on their unit type, and automatically revoke access upon move-out.
• Maximize long-term revenue: Set different prices for different spots based on features and location. Watch parking income grow without any pushback from residents.
• Unlock guest parking: Give residents a secure, easy way to book any idle spot for guests.
• Simplify enforcement: A CRM-synced system with license plate scanning means you know exactly who's supposed to be where. Residents can even self-report issues.
• Delight residents: Self-service reservations, transparent pricing, and guaranteed spots mean no more parking disputes or angry knocks on the office door.
• Save staff time: Our customers see average time savings of 90% on parking management tasks.

“Parkade’s team is doing the work of 70 people.” 

– Maggie Sullivan | Property Manager, Willow Bridge

The bottom line

Properties that embrace unbundling are seeing real benefits: more revenue, happier residents, and fewer parking headaches. The question isn't whether to unbundle — it's whether you'll do it in a way that maximizes value for your property or just checks a compliance box.

Ready to turn parking compliance into a competitive advantage? Let's chat about how to keep you compliant while putting you ahead of the competition.