Triplex with poor parking for the tenants... still a buy?

Question

Hey!

Would you buy a triplex that has very poor parking available for the tenants?

A potential property that I am looking into has parking only available on the street, first come first serve, located about 3 houses down from the unit. C class neighbourhood.

Thanks,

Steve

Brianne H. · Answer

@Steven Lalonde is the triplex also located in Castlegar? I would be quite wary, and probably only buy it if it was a really good price. Winter in Canada - most people really want to have a vehicle to get around in, even if it is an old junker, rather than rely on public transit (unless it's a large city with good transit, like Montreal). Also, being winter in Canada, people usually want the option to be able to plug in their car. There's always a few that don't and chance it starting when the weather gets cold, but I distinctly remember my first rental place when I was 18 not having a place to plug in my old car - never again would I want to repeat that winter. Any place I bought or rented since then I made sure there was a place to plug in.

Unfortunately there's just not a great solution. If you buy it, tenants won't be thrilled to have to park so far down the street (and in the winter, not on a priority snowplow route, there's going to be a lot of snow on the street, making it harder to get in and out) and not have a plug in. Will they have to fight for space down the street or is there ample space farther down? Residents who live farther down the street may not be thrilled at having to compete for parking space. A lot a tenants will be turned off when the parking is that inconvenient, they'll probably gripe to you about it even though they know that's the situation... It will probably be the bane of your existence with this property but if you can get a good enough price on it to make it worth it and account for the number of potential tenants who won't want it due to the parking, it could be worth it.

Cara Lonsdale · Answer

Wow.  This is an issue.  I suppose it really depends on where it is located and what is around it.  Are the Tenants all going to have cars, or is it reasonable that you would have bike riders/walkers living there?  Is there paid for parking lots near by that would work?

I think I would put my Tenant hat on and walk in their shoes to investigate how you would be able to make it work.  If you can come up with a solution that works and is consistant, I think it would be ok to proceed.

Steven Lalonde · Answer

Thanks for the replies John Warren and Lumi Ispas. From the research I have done, it appears many properties listed for sale in the small city I am looking at have only on street parking. What makes me nervous is that this triplex is at the very end of a no thru road, where snow plows will not get close to the building. With that being said, the building is very close to amenities and well within walking distance to grocery stores. In your experience, does rentals with no parking available attract less desirable or troubled tenants?

Thanks again!

Lumi Ispas · Answer

@Steven Lalonde , it all depends on parking availability.  If parking is available on the street and the rental income not including parking makes sense, then go for it. At least you don't have to shovel a parking lot!

Also if you have public transportation nearby, some tenants will not own cars.

Good luck and wish you an amazing 2018!

John Warren · Answer

@Steven Lalonde this is incredibly area specific. For instance, my Berwyn 9 unit apartment building only has five parking spots. This is a high demand rental area right outside Chicago, so it will not hurt my value. I would look at your competition to see what amenities are being offered. If you are in a very suburban area where parking is the norm, I would be very nervous to purchase a rental without parking. If you are in a more urban area like me, then you should be fine.