If you have some financially savvy, then you probably have a general idea of the best kind of long-term investments to make. You know how to play the stock market, how to manage rental properties, and how much money to put into a savings account.
What you may not know, however, is that buying a parking lot could be one of the best financial decisions that you'll ever make.
That's right — in this article, we'll take a closer look at how you can profit off of a parking lot purchase. After you read this guide, you may well be looking at the various garage lots for sale in your area!
Assess Economic Trends in the City
The first thing that you need to do when considering starting a parking lot business is assessing the economic trends of the city that you are purchasing the lot in. Remember that parking lots can only be profitable with a high level of vehicular traffic.
Has the city been moving towards a reliance on public transport? Is the industry in the city dwindling, causing there to be a smaller demand for public parking? If so, then you may want to steer clear of that city and try a different location.
But if the city's growing and personal vehicle usage is common, then owning a parking lot may just be a sound investment decision.
Talk to City-Based Real Estate Agents
The second step in how to start a parking lot business is to talk to city-based real estate agents. Only seek out agencies that have significant experience in dealing with city properties. They will be aware of all the local ordinances that you may have to adhere to.
The last thing you want is to purchase a site and then find out that you can't use it as a parking lot as planned because of some stringent zoning law. The right realtor with the right prior experience will steer you clear of such unfortunate situations.
Price Out Paving the Site
Once you have a few sites picked out, get some quotes on what it would cost to pave the site and mark out the parking lot from companies like Semper Fi Striping.
These two expenses will be the primary ones as you start your business. Some sites may be more difficult to pave than others, so even if the actual property value is lower, the overall cost of getting started could be higher than other sites.
Pick Entrance and Security Options
Last but not least, once your site is picked and paved, you need to choose the entrance and security options.
You can use a boom and automatically-issued parking receipts to control access. Or, you can steer clear of booms and instead just allow parking on an honor system. The option you choose will often depend on what the city culture is like.
Buying a Parking Lot Made Simple
There you have it — with this guide under your belt, you should now be far better equipped to embark on your journey of buying a parking lot and profiting from it.
For more real estate advice, check out the rest of the website!