Business owners and entrepreneurs understand the value of diversifying their portfolios. Having multiple streams of income is not only smart but also imperative in an environment where there is constant change. While you might want to fill your investment and business portfolio with technology companies, there are some practical options that can bring in a steady stream of income as well. One of these business opportunities is in owning a parking lot.
Parking lots in bigger towns and cities can provide a good income, while also being easier to maintain than many other types of businesses. Some people prefer a good parking lot over street parking. They like the ease and convenience of being able to park like normal. Here are some of the little-known benefits you can experience when you own a parking lot.
Recoup Your Investment Quickly
Starting up a business and running it can be costly at first, and it can take time to bring in an income. With a parking lot, you don’t have to worry about building a large facility, finishing out an indoor space, and running a lot of complicated electrical and plumbing like you would with a different type of business. Instead, find an open space and finish it out with cement and parking lines. This will allow you to start renting out spots very quickly.
And when each spot can go for $2-$10/hour depending on your area, with 100 spaces, you could easily rake in $200-$1000 per hour when the lot is full. If you stay open for 12 hours a day, you’re looking at up to $12,000 per day to run your parking lot. This could bring in money very quickly so you can pay off the land, pay for taxes, and maintain the lot.
Parking lots do require maintenance, and sometimes this maintenance can feel expensive. You’ll need to hire a company to plow, shovel, and sand when snowy weather hits. If the surface starts to crack, you’ll need to fill in the holes and make sure that the ground is safe to walk on. But, in spite of those expenses, you’ll still be able to have a positive ROI if you do a great job of keeping your lot in good condition.
If you want to take your lot a step up, you can offer perks like a car charging station, the option to park overnight, and even a reduced hourly rate. When people feel safe, they are more likely to use your lot especially if it’s conveniently located near local attractions. You can also offer a set number of monthly passes for people who need to park in your lot daily and for long periods of time. These passes can be used to pay the basic expenses of running your lot, while your hourly customers add to the profits.
High Demand in Congested Areas
People in towns and cities need somewhere to park their vehicles. Parking lots are more desirable than parking on busy roads and that means that they are in high demand. While some businesses can be hard to get off the ground, parking lots in busy places are a no-brainer.
Everyone talks about the benefits of passive income. With a parking lot, you can hire an attendant to take care of the day-to-day operations, while you provide basic oversight and make sure the bills get paid. This means that for very little input from you, you can have a business that earns you a decent living. Use this strategy in multiple locations and you can see how a parking lot business could become quite lucrative.