Why car stackers aren’t the solution to parking shortages

February 21, 2024

TABLE OF CONTENTS

Parking is an increasingly massive headache for multi-family management teams. Given the simultaneous shrinking of the average lot size and increase in households with 3+ cars, properties are struggling to keep up with parking demand. 

That’s why, on the surface, car stackers seem like the perfect solution. This space-saving parking solution, also called vehicle stackers or car lifts, was a popular solution for a while. But property managers are quickly realizing that it’s not the quick-fix solution they were hoping for. 

For many of the property managers that we’ve talked to, car stackers are starting to top their list of headaches when it comes to keeping their property running smoothly. 

Before we get into why this solution doesn’t hold up – and most importantly what the better alternative is – let’s first talk about how exactly these systems work.  

How do car stackers work?

Car stackers, in the simplest terms, use a mechanical system to stack cars vertically, maximizing space. 

The first car drives onto the platform at the base of the stacker and exits their vehicle. Once the driver is out, the stacker activates, holding the car steady and lifting the platform vertically, making room beneath for another car. While many stackers are two levels, some can be 3 or more, depending on the vertical space available. 

To retrieve a car, the process reverses. The stacker lowers the car back to ground level, letting the driver get in their car and drive away.

The value of this can be obvious, especially when you need more space in your garage for additional cars, whether as a result of city ordinances or resident needs. This allows you to take advantage of the vertical space you already have without needing to expand the current footprint of your parking garage. 

However, they usually come with more hassle than they’re worth. 

Why car stackers aren’t a good solution

Property managers or developers install their shiny new car stackers and sit back to revel in the space efficiency they now have. However, they’re often quickly smacked with the harsh reality that car stackers create more problems than they actually solve. 

Residents don’t like them

Property managers are typically quickly swarmed with complaints from residents once they install car stackers. 

Many of these complaints center around how difficult to use they are. Jamie D’Allessandro, Principal at Windy Hill Development mentioned the one-hour training that residents have to go through just to use the stackers. This places a burden on both residents and staff. 

A reddit user mentioned their annoyances with using the stacker system:

“The gripe I had with it was just the added time needed to do things…the most annoying thing was that you had to be the one to manually go to the console and start the process, and then be the one to open the door, drive your car in, get out, and then also be the one to close the door, too.” 

This complicated process also leads to damage to cars. Not situating your car the perfect way on the platforms can lead to scratches on your car, or even knocked off side mirrors. And this is not even to mention the damage that can happen when the machines malfunction…which we’ll touch on in the next section. 

Because of all of the hassle associated with these spots, residents don’t want to park in them. Windy Hill Development’s D’Alessandro told us:

 “We’ve been open 2 years now, and only half of the [stacker] parking spots are even rented.”

He continues, “No one wants to use the stackers. Many of the residents prefer to just park on the street or pay for regular, non-stacker spots in other garages nearby.” 

One of our other customers, Vespaio, has experienced a similar situation. While occupancy for their non-stacker spots is consistently over 90%, the occupancy for the car stacker spots is only at 17%, despite both types of spots being the same price. It’s extremely clear that even when priced the same — and even though stacker spots fit two cars instead of one — residents strongly prefer avoiding the stacker spots. 

Prone to malfunctions

Like we mentioned, car stackers can be prone to malfunctioning. And since they’re big, heavy pieces of machinery, malfunctions can cause some serious harm. 

All it takes is a quick online search to discover some horror stories. One resident’s car door got crushed between platforms, and another car was stuck in a stacker for 9 months, with no solution in sight. 

Laila Zamarano, a Regional Manager in Oakland, Calif., explained the complications these malfunctions can cause. “As recently as last week, an irate resident flagged me down because she couldn’t get her car out of the stacker. I had no idea what else to do, so I just had to pay for her Lyfts to/from work.”

When these problems do occur, finding a way to fix the machines can also be a whole new problem in itself. One reddit user mentioned that they were waiting 2 weeks for a repair to their stackers. Laila’s property has an even longer wait time; since the company that made their stackers went out of business, her team has struggled for months to find someone to maintain these no-longer-supported stackers. 

Other incidents out of your control like internet outages can lead to problems, since internet is often needed to operate the car stackers. So your residents or staff may sometimes find themselves with no way to retrieve their cars. 

Expensive to install and maintain

The cost of car stackers is often a major drawback as well. Although the cost of installing the stackers themselves is extremely high, ranging anywhere from $4,000 to $70,000 on average, depending on the number of units and the models, this doesn’t take into account the additional height needed and time it takes to prep a site.

For example, one of our customers, The Palomino, was required by their city’s planning department to provide more parking spots. Instead of adding another level to the garage, they figured car stackers were the best option to make the most of their existing space. However, that involved digging a “pit” below the first floor of the garage, adding extra height to the first floor and added a month of construction time. The construction and hardware costs added $2 million in direct costs, for only an extra 25 parking spots, or $80,000 per spot.

Size restrictions

The size of vehicles is also a major limitation when it comes to car stackers. Many of the options on the market only allow for sedans to park on the stackers, which disqualifies many residents’ vehicles. 

One developer we talked to explained their time-consuming vetting process where, “we need to look up the make/model/year of any vehicle that wants to park on the stackers and confirm it will fit.”

This size problem will only continue to grow as the trend in the United States towards bigger cars rises. Crossovers and SUVs are now at 50% market share, and many carmakers are even considering (or already have) scrapped sedans from their new car lineup. 

This means that, increasingly, fewer cars are going to be able to fit on these stackers. Laila Zamarano said that many of the properties she oversees are already experiencing this rise in the percentage of residents with larger vehicles. 

So what’s the alternative?

A common phrase when we talk to property managers or developers about car stackers is “they’re a necessary evil to create more parking.” 

But often, that’s not the case. Usually, properties realize that it’s not that they have too little parking, they’re just not managing it correctly. Before a property digs deep into their pockets to invest in hardware, they should try better parking software first.

Digital parking management solutions

Using a digital parking management can help you to make the most of all of the spots you already have. 

If you feel like you’re short on spots, better software can’t double your parking utilization — but 20-30% increases are common, like the 27% increase we garnered at Greystar’s first partner property with Parkade, just through better records and self-serve technology.

Software like Parkade digitizes your parking lot or garage, prices it correctly, and keeps your records 100% up-to-date. As a result, your parking utilization is maximized, eliminating the need for stackers in the first place, even in lots or garages where space is tight.

For long-term parking, Parkade makes it possible for residents to reserve the parking they need. They’re also able to capitalize on periods when they don’t need their spot, like when they’re out of town, for example, by making them available for short-term use which guests can take advantage of. 

Building managers can also make the most of idle spots between leases by offering them up for short-term use. 

Our easy digital enforcement tools also boost capacity by ensuring only those who have an active reservation can park there.

If buildings choose to charge for parking, only the residents who actually need a spot will pay for one, so this also increases utilization. On average, buildings boost their capacity by 29% with Parkade.

In other words, you’re optimizing your parking capacity from all angles. So, does that pesky car stacker still seem worth it? 

Reach out for a demo today to see how we can fix your parking, no stackers required.

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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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