Tandem parking at apartments: a necessary evil or not? 

August 7, 2024

TABLE OF CONTENTS

Parking planning is one of the most important and also one of the trickiest feats that property managers have to take on. And when you’re faced with the issue of being tight on space and not meeting the parking needs of your residents, tandem parking can appear to be a solution.

In many ways, tandem parking seems like a necessary evil. While it comes with its (substantial) downsides, it is quite effective at helping you squeeze a couple extra spots into an otherwise overfilled parking lot or garage. 

In this piece, we’re going to zoom in on this issue and help you determine whether tandem parking is the right option for you, and if it’s not, what the alternatives are. 

But first, a brief overview on what tandem parking is

Typically, a tandem parking space is one long space that has enough room to fit two cars right in front of each other. Sometimes, there may be tandem spaces that fit up to four cars, but that’s not the norm. 

The average dimensions of a standard 2-car tandem space is 9 feet wide and 36 feet long. 

The reason that tandem spots are more space-efficient than a standard spot is because one car blocks another one in. In order for the car on the inside to leave, the outside car will first need to move. Compared with traditional parking where all cars can move independently of one another, tandem parking requires coordination between owners of the two cars who are sharing the spot. 

This can be useful for very small lots where you don’t have the room for an adequate number of standard spots. It’s also popular for properties that have very narrow spaces available for parking, like townhouses, for example. 

The downsides of tandem parking

As you can imagine, the required coordination between owners can cause more than a few headaches. 

Inconvenience to residents

Especially for those who commute to work every day, having easy access to their vehicles is important. Having to coordinate with a spot neighbor any time they need to leave, whether it’s to move their own car or ask someone to move theirs, can quickly become cumbersome. 

This is especially inconvenient during busy hours or if residents are running late. Having to take that extra couple of minutes (or perhaps longer, if they can’t get a hold of their spot neighbor) can throw a major wrench in their day.

We’ll just let this user from reddit explain how they feel about the inconvenience caused by a tandem spot. 

More disputes between residents

Because of the required coordination when sharing spots, residents are likely to experience dissatisfaction when they can’t get a hold of – or get along with – their spot neighbor. If residents are continuously dealing with communication problems, hostility can grow. And there are few worse things for community morale than disputes between residents

Burden to your staff to coordinate

You can be assured that your staff won’t be shielded from the disputes and the inconveniences of tandem parking. Often, staff will be brought in after the dispute has already escalated, making for more fraught communication from residents. 

On top of the emotional toll that this can take, the time needed to mediate disputes and identify solutions can eat into their day and overtake more important property management tasks. 

Potential vehicle damage

Because cars are stacked one behind the other in tandem parking spots, the potential of damage to vehicles is much higher. If someone is in a pinch to leave and can’t get a hold of the person that they share their spot with, they may be more likely to try to squeeze out anyway and risk scraping against the other car. 

When tandem parking makes sense

Despite the downsides of tandem parking, there are select instances where it may make sense to use it as a strategy to make the most of your parking lot. 

1) If it’s offered as a budget alternative

Some residents prefer to be budget-conscious and would love the opportunity to trade a little convenience in order to save some money each month. Some may even be excited to get a cheaper double spot if they have two cars and they rarely use one of them. Or if they often have guests over who they want to reliably reserve spots for

Of course, pricing preferences can go the other way, too, as demonstrated by this user:

The key is to give your residents the choice, not to stick residents with a spot they don’t want, especially if they’re paying the same price as everyone else. 

2) If you have a communal and collaborative community

Some communities have a tight-knit, collaborative culture that would welcome cooperative parking solutions as a way to handle a parking shortage. In these instances, you may be less likely to experience the hassle and disputes as residents are more likely to work together to proactively plan out their driving schedules. 

3) If you have the resources to make spot sharing easier

Great communication is the only way to make tandem parking sustainable at a multi-family property. If you set up, maintain, and continuously monitor reliable communication channels, especially those that leverage easy-to-use technology that can help to automate a lot of the most tedious logistics of tandem parking. An app like Parkade, for example, can make it easier to report problems with a tandem spot and to get redirected to a temporary spot if you’re blocked out of your spot, for example. 

When tandem parking causes issues

On the flip side, there are many instances where tandem parking is going to do more harm than good. In the following scenarios, you may want to look into alternative solutions to manage your space more strategically. 

1) If it’s not priced appropriately

This is the other side of the coin of our point about the value of a budget alternative above. If your residents have no say in whether they receive a tandem spot or not, and worse, if they don’t receive a discounted rate for that spot, it’s likely to sour their experience. 

2) If non-roommates have to share a space

It can be difficult enough to coordinate shifting cars around with people that you live with, but it’s made much more inconvenient when coordinating with non-roommates. Often, if people live together, they will give their roommates a copy of their key so that a car can be moved in a pinch. This takes a level of trust that many people may not have with someone they don’t know well. 

Disputes are also more likely to happen between people who primarily communicate about parking and parking only. 

3) If zoning laws prohibit or limit it

Zoning laws and regulations regarding tandem parking vary by location. For example, in Burbank, CA, tandem parking is permitted for Accessory Dwelling Units (ADUs) with specific setback and placement rules​. In New York City, tandem parking is allowed under certain conditions, such as on lots at least 33 feet wide. 

Property managers should consult local zoning codes to ensure compliance with all applicable regulations before implementing tandem parking.

4) If you’re already experiencing parking pains

While it can be tempting to see tandem parking as a quick fix to a parking shortage, it may backfire if you already are experiencing other issues with parking management, like enforcement, for example. 

Parking is one of the most important considerations for residents when it comes to deciding where to live (or where to keep living), so any additional problems may be the final straw for residents who are already having a frustrating parking experience. 

How technology can replace the need for tandem parking

Luckily, there are several other strategies that can help you more effectively tackle parking shortages, with fewer side effects. 

Limit who can get parking and how much

The root of your problem may be that you’re not putting enough limits on who’s using your parking. Whether you’re offering up paid or free parking, technology can help you put guardrails in place to make sure that all your residents are getting their needs met. 

For example, you may have someone who lives in a studio but has two cars taking up a spot in your lot, while 3 people living in a 3-bedroom apartment don’t each have a spot to themselves. 

Putting a limit on who is able to get a spot and how many spots can go a long way to easing a parking shortage.

Adjust your pricing to meet demand

We always recommend putting a fee, even if it’s nominal, on parking to help ensure that only those who truly need parking are using it. Free parking, in most cases, does more harm than good. 

But even if you are charging for parking and still experiencing shortages, you may need to revisit your pricing strategy. Pricing that is set too low is likely to lead to overutilization, which causes shortages. Raising prices even a small amount can help to offset some of the demand.

We’d always recommend a more dynamic pricing strategy as well, which technology like Parkade makes breeze. For example, if some spots sit empty, whether it’s due to distance from the building, compact size, or something else like proximity to trash cans, you likely want to price these spots lower than others to incentivize residents to use them. Whereas for spots in a prime location or with no neighboring spots, or EV charger access, should have a higher price tag. This dynamic pricing strategy is especially helpful if you are experiencing long wait lists for some spots while others go unclaimed. 

Parkade as a solution to parking shortages

The best solution to a parking shortage, or any other parking management issue, is to overhaul your current parking management system. We’ve seen countless issues, from enforcement to shortages to overwhelming staff burden, be completely eliminated by leveraging a better system. 

We strongly believe that a spreadsheet or, worse, pen and paper system is where good parking management goes to die. 

When you implement a parking solution like Parkade, you’re able to dynamically respond to demand, leverage empty spots between leases for short-term parking, automate your enforcement processes, and give your residents self-serve capabilities to reserve parking (while still taking into account the rules we mentioned earlier). 

In short, better parking management, in most cases, makes tandem parking go from a necessary evil to an unnecessary evil.

Follow us on social:

More from the Blog

Expert advice on making the transition from bundled to paid parking

With a little strategic change management, you can minimize the hiccups and get more residents to buy-in to the value of paid parking more quickly.

Read Story
Out-of-the-box strategies to boost occupancy in uncertain markets

Market conditions greatly affect property managers and owners. We've culled together a few unique strategies to weather the storm during uncertain periods.

Read Story
How to calculate and improve NOI at multi-family properties

Every property manager or real estate owner has strategies for increasing revenue – but that's only one side of the story. Read on to discover how to calculate NOI, a crucial number for measuring profitability.

Read Story

Want to learn more about Parkade?

UNLOCK THIS POST

Want to keep reading?

Almost there!

Success! Your content will unlock momentarily.
Oops! Something went wrong while submitting the form.
BlogParking Management Software ROI

Investigating the ROI of parking management software

With parking being one of the largest drivers of ancillary revenue at multi-family properties, it's imperative to get it right. But just how much return can you expect from parking management software? Read on to find out.

Published: August 7, 2024
Hannah Michelle Lambert
Content Writer
Boosting ancillary revenue is often a major focus for property managers and owners alike.

Especially given that the baseline forecast for rent growth is slightly lower this year than average (2.5% versus 2.9%), properties are increasingly looking for ways to raise their bottom line without compromising the quality of living for their residents. 

One often overlooked but significant opportunity lies in parking. If managed well, it’s a potential treasure trove for additional revenue. But that’s only if it’s done well. 

Parking tends to be one of the biggest thorns in the side of a property manager. Because traditional systems — like spreadsheets and rentable items — are not built to handle tenant parking efficiently, teams aren't able to reap the full benefits parking has to offer as an ancillary revenue source. As soon as a team makes the decision to invest in a proper parking management system, the benefits often more than pay for themselves.

In this guide, we will explore those benefits, touching on both the financial and operational upside of a solid parking management strategy.

We’ve combed the data from all of our clients to identify the exact numbers to prove that there truly is ROI in parking management systems like Parkade. 

Understanding parking management

Before we dive into the numbers, let’s first establish a baseline of what exactly parking management entails. As any property manager will tell you, it involves much more than just hanging a tag on a resident’s car and calling it a day.

The key components of a parking management system are:

  • A system of record to track parking assignments, lease lengths, vehicle details, and parking prices, ideally integrated with your PMS.
  • An enforcement strategy that ensures parking rules are clear and establishes consequences (typically fines or towing) when someone breaks them.
  • A method to pay for parking, whether it’s bundled in with rent (which we don’t recommend) or paid for in a separate system.
  • A self-serve system for residents and guests to book long or short-term parking. 
  • If there is a gate on the property, provisioning and deprovisioning of gate entry should also be considered in the parking management strategy. 

The old-school way of addressing these needs isn’t cutting it anymore. Many properties are still using manual processes, like an Excel spreadsheet, rentable items, or even a physical piece of paper to keep track of their parking. 

And far too often, properties are relying too heavily on staff members to handle parking matters that take up a significant amount of time, like enforcement or guest parking.

Moreover, there’s one point that just can’t be ignored: If you’re still using old-school parking management systems like spreadsheets and rentable items, you’re leaving money on the table. 

So the parking management we’re discussing here that delivers positive ROI is a technology-led solution that automates all aspects of parking operations, improves resident experience, and unlocks new revenue streams.

Setting the stage: Residents value good parking

Delivering on resident expectations should be a main priority for any multifamily property, and parking is one area of the resident experience that is especially critical to consider here. 

65% of property managers cite parking as a top concern among residents. Whether it’s for existing residents or prospective residents, providing a simple, reliable, and flexible parking solution has a direct impact on the success of your property. 

Part of this is due to reputation. Properties have reported a 44% increase in their reputation scores after fixing their parking problems. And this boost in a reputation score can trickle into several different areas, boosting not only the number of new residents, but also leading to more renewals from existing residents.

But we know you want the hard dollar amounts, so let’s talk more about some real-world outcomes that Parkade's parking management software delivers. 

So, what do the numbers say about the ROI of parking management software?

Long-term net parking revenue for stabilized buildings

Once properties implement a system to help them optimize pricing and management of long-term parking, they see immediate gains in their long-term parking revenue. The average 6-month increase in net long-term parking revenue for the cohort of 7 properties we sampled was 24%, translating into thousands of extra dollars. 

Long-term net parking revenue for lease-ups

Better parking management also empowers properties to far outperform their projected revenue from long-term parking when they’re in the lease-up phase. 

On average, properties from the cohort we sampled estimated that they would bring in $15,925 on average from long-term parking revenue per month. But thanks to Parkade helping them optimize their parking strategy, better enforce their parking rules, and keep a better record of who is parking where, the average revenue from long-term parking was $23,450 on average, which is a 47.3% increase from the estimates in their pro forma. 

Total net parking revenue for stabilized buildings

For buildings that are already at full occupancy, the average increase in parking revenue sits at 31% once they implement Parkade’s parking management solution. 

Revenue metrics for lease-ups

The best time to implement new parking management systems is at the inception of the building. Getting parking right from the beginning ensures that you are maximizing total parking revenue from day one, as well as establishing a positive reputation around parking. Many properties underestimate the revenue from long-term parking and may often leave out potential short-term parking revenue altogether. 

When a few properties we worked with during this phase were estimating parking revenue at the start of their lease-up, they estimated around $35,000 on average. But the results, since they decided to go with Parkade right from the start, blew those numbers out of the water. In reality, they were able to bring in closer to $58,000 on average, which is a 66% increase from the estimates.

Short-term parking: An opportunity

The boost in revenue continues to be apparent when you zoom out to look at short-term parking, too. Short-term guest parking can be one of the most underutilized revenue streams, and represents a huge opportunity for multi-family properties to tap into. However, it's historically been very difficult or impossible for properties to see this revenue without parking management software that automates the process.

Especially in popular areas, like city centers or near shopping malls and sporting arenas, there’s often a high demand for short-term parking. When properties put a system in place to monetize this guest parking, they can unlock hundreds or even thousands of extra dollars per month. 

Automating guest parking

Without a good system in place to manage parking, many properties often leave guest parking as a free-for-all (meaning they don’t make money from it), or if they do attempt to monetize guest parking, it turns into a massive beast to handle. 

Erica, a property manager at Thrive Properties, told us about her pre-Parkade experience with guest parking, preventing them from delivering on a key resident need: “There was no world where we were doing short-term parking by the hour or even by the day because there was just no way to manage that.”

If you have a complicated or inconvenient system for guests to reserve parking, especially one where they have to walk into the office during office hours, guests are often more likely to try to get away with not paying for parking. (And if you don’t have a great system to enforce parking, they may very well get away with it).

With the right parking system, you’re able to give guests a flexible, 24/7 solution, removing any previous barriers that may have caused them to break the rules out of convenience. 
Maximizing guest parking availability

Another way that manual parking management may stand in the way of effectively monetizing guest parking is the inability to accurately track how many spots you have available for guests to reserve in the first place. 

Taylor, the property manager at Strata and Venue, shared her experience of desperately needing more guest parking and discovering they had a full 50 more open spots than they thought. 

“We actually had way more spots that we could have used for guest parking, but we didn’t know that because of the way we were using our parking system. Not to mention, we wouldn’t have the system to leverage them without a Parkade.”

When your parking management system gives you an accurate, real-time view of available spots, you can leverage guest parking to its full capacity.

Utilizing idle parking spots

A reliable parking-management system also allows you to make the most use of every single spot available. With technology that uses smart inventory management, properties can release idle or unassigned parking spots into the system for short-term use. So spots that would have otherwise been sitting empty between leases can suddenly be leveraged as an extra revenue-generating spot in the meantime. 

Net revenue for short-term guest parking

When properties have a great system to implement paid guest parking, without putting too much strain on their staff, they immediately see a boost in revenue.

They’re able to turn an operation that was perhaps bringing in no money — or some revenue, perhaps at the expense of staff time —  into a significant revenue source with little-to-no staff involvement. 

On average, Parkade customers experience a 303% increase in their guest parking revenue after Parkade fees. And there were some properties that saw almost a 400% increase.

Opex (operational expenses) savings

When handled manually, parking management can steal hours from on-site property management teams every week. Between fielding requests or complaints from residents, tracking down parking records, walking the lot to enforce rules, handling guest parking, and manually inputting rentable items, parking can quickly balloon into one of the most time-consuming tasks for staff.

Parking management software can automate away a lot of the most tedious aspects. For example, Parkade gives residents self-service access to reserve and pay for parking (while allowing for any rule sets the property wants to enforce), provides hands-off enforcement support, and even automates gate access via the app so that teams don’t have to worry about distributing or replacing clickers. 

Properties have seen that the time teams no longer spend on parking leads to a direct decrease in operational expenses. As a result, they can redistribute those team members' time to more meaningful tasks.

On average, we’ve seen properties decrease their operational expenses by $60,000-$100,000 from savings on parking operations alone. This means that they were able to save what’s equal to a full-time employee’s salary. 

Annual NOI improvement

All of the revenue metrics mentioned up until this point have been after Parkade's fees. 

When you roll everything up together — both the increase in revenue (after fees) and the opex savings — investing in parking management software has an incredibly positive impact on annual Net Operating Income (NOI).

Whether teams are looking to calculate their property value, secure financing, make operational decisions, or pitch to investors, NOI is one of the most critical numbers to boost. 

By coming at NOI from both sides, in terms of opex savings and revenue generation, parking management technology is extremely low-hanging fruit when it comes to boosting NOI. 

At the Parkade properties we surveyed, teams saw anywhere from a $66,000 to $126,000 improvement to their net operating income from parking alone. 

While parking may not seem like it deserves to be the biggest priority for many properties, the numbers tell a different story. By investing in a proper parking solution, properties are able to significantly improve upon all of their business goals, whether it’s boosting revenue, streamlining operations, improving resident experience, or all of the above. 

About Parkade

Parkade is the #1 parking management software for multi-family buildings. With our resident-facing app and staff dashboard, parking runs itself. Your team will boost revenue, reduce time spent on parking, and improve experience for residents and guests, all without lifting a finger.

Explore our features below, built for communities just like yours.

Ready to transform parking?

Ready to optimize your parking operations and start seeing the immediate ROI?

Reach out to schedule a demo now.

What are you waiting for?