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General Landlording & Rental Properties

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Zach Simon
  • Chicago, IL
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Renting out parking spots

Zach Simon
  • Chicago, IL
Posted Nov 25 2015, 08:31

I am considering buying an apartment in downtown Chicago that includes an indoor parking space. I want to rent out the unit and the parking separately. 

Is it easy to rent out parking spaces? What's the best way to do this? How does renting out a parking space differ from renting out an actual apartment in terms of costs, turnover, etc?

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Brie Schmidt
  • Real Estate Broker
  • Chicago, IL
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Brie Schmidt
  • Real Estate Broker
  • Chicago, IL
ModeratorReplied Nov 25 2015, 08:34

@Zach Simon - I am assuming it is in a condo building?  Usually there is a bulletin board or list with the office of people waiting on spaces.  Then you just rent it out for the year, no overhead except for the taxes if it has a separate PIN.  

You lease would expire after a year or have a 30 day out clause, so when it is due you would just put something on the bulletin board or go back to the office.  

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Jeff B.
  • Buy & Hold Owner
  • Redlands, CA
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Jeff B.
  • Buy & Hold Owner
  • Redlands, CA
Replied Nov 25 2015, 08:37

hmm;  What is the on-street packing situation?  If you're in a high density neighborhood, I would suggest renting the spaces is not ideal - - you're actually creating a negative marketing situation, where down the street spaces come with the units, but not yours :thumbs down:

I have lockable garages with my MFU and most only come with car ports - - I win as they can serve as onsite, free storage units.

Every amenity is a marketing advantage.

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Ryan Dossey
  • Real Estate Broker
  • Indianapolis, IN
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Ryan Dossey
  • Real Estate Broker
  • Indianapolis, IN
Replied Nov 25 2015, 08:38
Originally posted by @Zach Simon:

I am considering buying an apartment in downtown Chicago that includes an indoor parking space. I want to rent out the unit and the parking separately. 

Is it easy to rent out parking spaces? What's the best way to do this? How does renting out a parking space differ from renting out an actual apartment in terms of costs, turnover, etc?

 You can rent them separately. But I wouldn't be surprised if your tenant of the condo wants the spot as well. Maybe just bill it as a separate fee? 

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Franklin Romine
  • Visalia-Fresno, CA
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Franklin Romine
  • Visalia-Fresno, CA
Replied Nov 25 2015, 08:38

@Zach Simon

My thought would be to collect a full year parking rent up front.


Frank

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Bill Florence
  • Investor
  • Boulder, CO
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Bill Florence
  • Investor
  • Boulder, CO
Replied Nov 25 2015, 09:18

Cool idea. I see ads out here for private garage city parking around a couple hundred a month. There is actually a sub-market for this kind of thing I think. Good luck and let us know how it worked out.

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Brian Dowling
  • Investor
  • Chicago, IL
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Brian Dowling
  • Investor
  • Chicago, IL
Replied Nov 25 2015, 09:37
Originally posted by @Franklin Romine:

@Zach Simon

My thought would be to collect a full year parking rent up front.


Frank

I'm not sure how reasonable that is. There's plenty of garage parking available in the city for about $200/month. Forcing a renter to pay that up front seems like a good way to send them to the competition.