Make a Parking Lot Earn You More Money

Starting a parking lot business in a busy area with limited parking can be a smart decision. Car parks are needed near commercial areas, like airports, hospitals, schools, or basically anywhere that attracts a big crowd. However, if you don't know how to start one and make it successful, we're here to help. We'll teach you how to build a parking lot business, from the cost of buying a lot to staffing and security.

How much profit can a parking lot make?

It's extremely hard to give numbers because every parking is different.;Let's say a parking lot with 20 parking spaces earns an average of $10 per space a day, it will yield $200 in gross revenues. Per year, it will earn $73,000 in gross revenues. If the lot is 4,000 square foot big with a monthly rent of 50 cents per square foot, it will have a yearly rent of $24,000. When it comes to wages, the minimum wage level for parking lot attendants is around $21,000 a year. This leaves you $28,000 in gross profits before taxes.

Here are the things you need to do when starting a parking lot business:

Find a suitable lot

The first thing you should do is to look for an empty lot that you can turn into a parking lot. Look for a lot in high traffic areas, like those near malls, restaurants, tourist attractions, hotels, airports and sports arenas. To give you a general idea of what you can expect to pay for commercial land here's useful data from landcentury.com (note that the figures are rough averages only) 
When buying an undeveloped lot, figure out first how many parking spaces you can fir on the property. Public parking spaces usually measure18 to 19 feet in length and 9 to 10 feet in width, with wider spaces reserved for PWDs. You'll also need to allow spaces for the entrance and exit ways.

Equipment required

Every parking lot needs a ticketing and payment collection system. This so you know how much to charge your customers. You can do this manually, by hiring someone to take payments when drivers leave the lot. You can also install an automated ticketing system that dispenses tickets and accepts cash automatically.

To give the lot a smooth surface, you'll need to finish it with asphalt. Paving a 50,000 square foot parking area could take between $1.25 and $1.50 per square foot. Note that the larger the lot, the lower the cost per square foot will be.

Likewise, you'll also need to put up traffic signs and paint road markings using thermoplastic road marking paint to ensure drivers' safety.

Pay appropriate taxes and be fully insured

Check your city and state laws about any taxes you must charge your customers. For example, in Seattle, Washington, owners of commercial parking lots must pay a 12.5 percent tax. The city allows the tax to be shouldered by customers as long as this is clearly indicated on the signs in the lot.

Likewise, you'll need general liability insurance coverage for your lot, to cover a customer's injury or damages to their vehicle/s.

With the number of commercial businesses and vehicles on the road increasing, this is the right time to invest in a parking lot. Be sure to follow the above advice to get your parking lot business running on the road to success.