Dos and don’ts of visitor parking registration at your apartment

June 9, 2023

TABLE OF CONTENTS

Visitor parking — or “guest parking” — can be a massive headache for property managers, residents and their guests, if not handled correctly. We’ve spoken to dozens of properties around the country, and put together the most common pitfalls and top recommendations on how to do visitor parking right. 

Read on to learn: 

Why is visitor parking important?

For your residents, the ability to easily have guests (friends, partners, family, etc.) visit and make sure they have a reliable and safe place to park their cars is a huge perk. For many, it’s more than a perk — it’s non-negotiable. In fact, lack of parking lot space consistently ranks as one of the top complaints from apartment residents. 

And we get it. Everyone wants a great social life, and easy parking for visitors can play a big part in that. Without easy guest parking, some prospective residents simply won’t live at your property, and those that do will keep visitor parking top of mind throughout their time living at the property.

For instance, we spoke with a resident who chose not to renew his apartment lease because of parking. Brad Mallow, a 35-year-old California resident, told us: “I left my last apartment complex in LA, which had no visitor parking, mainly because I was tired of my friends and family having to park blocks away to come visit me!” 

For property managers, this makes visitor parking programs a great way to provide a better resident experience and even draw in more prospective residents — while increasing revenue. 

Sounds like a win-win, right? Well, not always.

Common problems with visitor parking  

As any property manager will tell you, getting visitor parking right is easier said than done. 

The reality is that visitor parking is complicated. There are, quite literally, a lot of moving pieces.  It’s often fraught with challenges for both residents and property managers. 

Here are a few of the problems we see most: 

Unmet needs

The no. 1 problem communities around the country run into when it comes to parking is capacity. Communities, increasingly, have less parking on-site — both for residents and their visitors — especially as real estate developers are building less parking per unit over the last few decades.

Graph of average parking spaces per residential unit

That makes it tough to meet the demand for visitor parking, which, especially at peak periods, can be massive. A typical newly built 200-unit property might have had 400 parking spots in 1990. These days, 300 spots for 200 units is more typical for new construction — but that same property still has hundreds of resident vehicles and dozens of visitor vehicles to accommodate at once. 

Carving out spots for visitors is vital, yet often, if residents have insufficient parking for their own vehicles, visitor parking is regularly overrun by residents’ own cars. And even if that problem can be solved, most properties will run out of visitor parking at the times it’s needed most, disappointing residents and their guests.

This need to maximize usage often results in communities doing “first-come, first-served” visitor parking to ensure no spots sit empty. But that in turn makes visitor parking completely unreliable, and is understandably frustrating to residents that just want to be able to reliably book parking for themselves or a guest ahead of time — for example, ensuring their elderly mother-in-law (a real VIP guest) will be able to find a spot when she comes to visit.

Just ask Chelsea, who left a review about how the lack of visitor parking options at her apartment building in Arlington, VA makes it “...almost impossible to have visitors during the week.”

With visitor parking demand shifting by the day, even by the hour, providing enough visitor parking can be a major challenge. And management should acknowledge that whether it’s allowed or not, visitors will try to park at the property. 

If you don’t give visitors a legal way to park, they’ll end up violating parking policies and parking in residents’ spots — which both angers your residents and is likely to get the visitor’s car towed, angering the resident they visited, even if they were in the wrong.

Negative staff impact

Having property managers manage visitor parking is incredibly time-consuming. And let’s face it, it’s not a good way to do things.

Property managers have a ton on their plates as is. Add in updating parking logs, keeping track of guest parking receipts, handing out guest passes, enforcing parking and securely offering gate access — it’s easy to see how it can quickly become unsustainable. 

At Canal Square, an upscale 300+ unit property in downtown Indianapolis, we spoke with property manager Sarah, who tried to offer secure visitor parking by having residents come to the office to pay for a pass and get a temporary gate code. 

Soon, she was getting 10, 20, sometimes 30 knocks on her door per day, and having to manually update gate codes weekly to maintain security. “It was overwhelming!” Sarah told us.

“But parking around here is tough, and we’d lose residents without visitor parking, so I didn’t see much choice in the matter except devoting hours of staff time to guest parking.” 

At La Galleria, a 187-unit high-rise community in San Francisco, George Leonard was tasked with the building’s finances. According to Leonard, they manually logged, tracked, and billed for guest parking. “The process was tedious and required lengthy follow-up by property management,” he said.

Sound familiar? It’s a story we hear from property managers constantly. Managing visitor parking this way is tedious work, yet often feels like the only viable option to keep visitor parking programs up and running.

The reality is that visitor parking frequently requires staff time that many staff simply don’t have to spare. 

Revenue left on the table

The majority of multi-family communities in the United States don’t offer visitor parking, and at those that do, the majority of them don’t charge for it — mainly because they don’t deem it worth property management time to sell parking for $1-3/hr. 

With huge demand for visitor parking at every community, that could be easy money for a property. Money that could be spent on maintenance, better staff salaries or new amenities.

Resident parking is often challenging enough to manage and as a result, many apartments are simply unable to offer viable visitor parking permit options, leaving guests to find street parking nearby or risk parking illegally. 

“There was just no world where we were doing short-term parking by the hour because there was just no way to manage that,” shared Erica MacDonald, Director of Community Management at Thrive Companies in Columbus, OH. 

Buildings without visitor parking aren’t only missing out on the opportunity to provide a better experience to residents and their guests. They’re also missing out on the opportunity to generate additional revenue. Most of Parkade’s partner buildings make considerable sums on short-term parking, like:

  • Founders, Erica’s 300-unit property in Columbus, makes $4,500/mo
  • Sentral Union Station, a 579-unit property in Denver, makes $10,000/mo
  • Current at the Banks, a 300-unit property in Cincinnati, makes $4,400/mo

Without a proper visitor parking, you’re leaving money on the table. But you don’t have to. 

Ways to make your visitor parking amazing

Think it’s impossible to offer visitor parking in a way that meets resident needs, captures significant revenue and doesn’t add to management’s workload? It’s possible! Just follow these top-8 recommendations we’ve gathered from property managers across the country:

  1. Give residents a self-serve way to book parking for visitors. Don’t have your staff doing unnecessary work! It’s 2024 — there's visitor parking registration software that residents and guests at your apartment can use. Requiring people to go through your staff to use guest parking means residents can only secure guest parking when your office is open, and many guest-parking needs are after hours. 
  2. Don’t worry about resident vs visitor parking. One of the biggest challenges with visitor parking is ensuring only visitors park there. If you utilize parking management software, you can stop segmenting your parking between “long-term” and “visitor.” Instead, it can all just be “parking” — and any open spot can be reserved for a guest.
  3. Don’t post “visitor parking” signage. Related to the above, while it may seem counterintuitive, posting signage that designates specific spots for visitor parking can be an open invitation for abuse of parking policies. At 51 Glen Eryie, a 25-unit community in San Jose with 2 visitor spots (and signs) out front, property manager Jackie shared, “I see residents from other buildings parking in visitor parking constantly, because when they see a sign that says visitor parking they know it’s not something we track carefully and they’re not stealing a resident’s spot.”
  4. Let people book parking in advance. Unreliable visitor parking spaces are better for residents than no visitor parking, but not much better. Instead of offering unassigned, “first-come, first-served” visitor parking that will drive residents crazy, ensure they can reserve spots in advance. No one wants to leave their mother-in-law, girlfriend or anyone (OK, almost anyone) out in the cold, circling for parking because guest parking is full.  
  5. Price the visitor parking program appropriately. Many communities are tempted to offer free guest parking, but making it free can quickly lead to monopolization by residents and their guests, so be intentional. Just price the spots appropriately. 
  6. Incentivize residents to make any unused spots available. Limited parking already? No problem. Creating a program that incentivizes residents to sublease their unused spots can boost parking capacity and make visitor and short-term parking spots appear out of thin air — we’ll explain how to do that below. 
  7. Enforce parking violations. You don’t need to watch visitor parking like a hawk for it to be well enforced (more on that later), but properties should act on violators. If word gets out that parking is poorly enforced, behavior will quickly get worse.
  8. Ensure guests get the message. One of the top online complaints you’ll find about many apartment communities is “they towed my [insert beloved family member]’s car!” You can minimize the chance of this happening by using a visitor parking system that allows guests to register their vehicles, get information about where to park and be notified about any misparking.

Transform how you manage your visitor parking with Parkade 

So now you’ve read the recipe for success on how to create amazing visitor parking, but wondering how to do it? Parkade can be a huge help here. 

“No guest parking was always an issue,” said Andrew Petit, assistant manager at Mariposa on 3rd in downtown Los Angeles. “Now we have guest parking, and it’s bringing in additional revenue for the building with no work on our side.”

Parkade is a centralized, app-based parking system that enables easy, reliable parking for everyone in your building in real time, even visitors. 

With Parkade, there’s no need for you to dedicate specific spots to visitor parking (remember, it’s an invitation for abuse anyway!). Management doesn’t need to differentiate between resident and visitor spots, and parkers can fluidly (and quickly) change to meet demand between residents and guests. 

No longer does management need to be the gatekeeper. 

Instead of going through management, residents can use Parkade’s parking management app to: 

  • Book guest parking, for immediate use or in advance
  • Add license plate and vehicle info
  • Give their guests a link to register their vehicle and contact info, who can then open the parking gate remotely or report issues with the spot they were booked
  • Add their long-term, assigned parking “back into the pool” when they’re out of town. This is an excellent way to increase available parking.

“It’s very convenient for us and for the residents, especially when they have people coming over and can finally get them places to park instead of having to worry about parking on the street,” explained Kristina Ferguson, property manager at Centerfield Flats in Columbus, OH. “Everything is great having Parkade!” 

Better still, Parkade also provides 24/7 parking enforcement services, and leverages “community reports” to spot violators, so enforcing visitor parking doesn’t mean more work for staff. We’ve got it from here! 

And what about gate access? We have you covered. 

Parking-gate access can be integrated with the app, by simply installing a wifi/cellular-enabled “dongle” into any existing parking gate. This means allowing trusted visitors to open the gate and meet their host at the elevator or their unit, without the hassle of registering with the office or keeping track of a physical gate code. 

Making your guest parking amazing doesn’t just mean reducing staff workload and happier residents, it also brings in significant amounts of revenue. From Indianapolis to Los Angeles, Parkade has helped many communities earn upwards of $500/mo per spot in guest parking revenue. 

But don’t just take our word for it. 

“I love having Parkade, it’s made all the difference when accommodating guests. In addition,  Parkade is very responsive to any issues and or problems,” shares Joseph Famulari, a La Galleria resident.

“Thanks to Parkade, the stress level has been dramatically reduced for our residents and guests.” 

Remember, getting visitor parking right is easier said than done. But if you follow the steps outlined in this article, we hope it will make things run more smoothly in your building.

If you’re curious about parking management software, reach out for a free demo today.

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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.

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