Am I Overthinking the Parking Situation on This Duplex Deal?

Question

Cody Barrett · Answer

My first investment was a duplex that had parking concerns but nothing that would prevent the tenants from parking close to the home. At least 1 of the tenants would have driveway access but the other for sure wouldn't unless both tenants had very small vehicles. BP helped me overcome the concern by being straight forward with the rental ad and offering the driveway to the tenant willing to pay a bit more than the other. This again was ok because there was available parking close by that was very reasonable. The key is disclosure and honestly if demand is high in the area, renters easily make exceptions.  For example, if the place is close to their work then parking a bit farther from the home might be an acceptable tradeoff. Another thing to consider is if its been rented successfully in the past then parking probably didn't hold its potential back too much, if any. If the area is receiving an average of X dollars for similar units but this one has been renting for considerably less then that might be a clue as well.

Richard F. · Answer

Just make a point to disclose the issue of limited parking in ads, at showings, and prior/during the signing process. Make sure to be clear with Tenants that parking on YOUR grass is not OK.

I managed a 100 unit HOA with exactly that problem. Garages turned into rec rooms, living rooms, bedrooms, home business packaging and warehouse room, etc. while there would not be any available guest parking for a block or more in either direction from their driveway. Very inconvenient for some folks.

If you can lawfully and with permits widen the driveways for additional parking on one or both sides, that could be a Win, although concrete is pretty pricey. With 3 BR, be especially discouraging to "professionals" that want to rent as roommates. They'll all have trouble parking which will create stress and turnover.

Don Lee · Answer

Thanks for your comments. The duplex has 3 bedrooms per unit. Each side of the duplex has a single car garage and driveway for a second vehicle. The entire street is the exact same duplex design by the same original builder. The street is a private road so parking/code enforcement not a matter for city code enforcement. I suspect what has happened since the original development in 2007 is tenants are using the garage as additional storage space, home gyms, etc. and to your point…multiple occupants each with their own vehicles.

I'm a little more concerned with the fact that the other owners don't seem to be doing any kind of parking enforcement but the unit I'm looking to buy doesn't have this issue. So it seems more of an appearance/nuisance issue at this point.

Richard F. · Answer

It Depends. How much legit parking is available exclusively for your residents use? Is some covered car port, garage, open concrete/asphalt pad, gravel? How many occupants to you anticipate in total...in other words, how many bedrooms per? These days, reality is most spouse/partners work and need their own transpo. So, depending on the actual parking arrangement, you may need to assign specific spaces exclusively to each unit, clearly marking them in some fashion, and including consequences for violation of various related "house rules" you will need to implement.

I always used a "Parking Agreement", completely separate from the Rental Agreement, which actually gives you an additional tool to use if you end up with a problem Tenant. Most jurisdictions treat parking agreements much differently than residential rental agreements, so you can terminate their Parking privilege quickly and easily, making their desire to stay in the property diminish dramatically.

Also, you need to fully document all vehicles, with copies of current registration, insurance card, and safety check or other local requirements for lawful use. Expiration of any of the above results in violation, soon followed by removal of the vehicle if not remedied. Be sure the vehicle is actually registered to one of the occupants that you will have further info on through your rental screening process. You do NOT want them making money by storing vehicles for other people that you end up needing to pay for removal.

Additional rules would typically be prohibiting any repairs that cannot be completed in 48 hours; no disposal of fluids or autoparts on the property or at curbside; no spray painting; no loud mufflers or nuisance noises 10 PM to 8 AM; Tenant responsible for damage caused by leaking fluids (staining on concrete, attacking and damaging asphalt); damage resulting from dropping heavy objects or using jacks with inadequate pads or other causes; Tenants not allowed to "swap" stalls or park in stalls not assigned to them, and no guest parking.

You will need to make size limitations clear in advertising and at showings, and in some cases prohibit larger vehicles from the available stalls if they interfere with others accessing their stalls. It really depend on the actual layout.

Caleb Brown · Answer

Doesn't seem like a deal killer. As long as you can park and get out then I wouldn't be worried. Sometimes it might be packed but if there is parking all should be good.

Don Lee · Answer

@Caleb Brown thanks for the reply!