The short answer: It depends more on location than on size. A lot near busy restaurants, offices, or nightlife can earn far more than a bigger lot three blocks away, and even a 10 space lot in the right spot can do very well. Nearby demand, the hours you sell, your rates, and how you enforce decide your number.
Key takeaways
- Location and nearby demand drive parking revenue more than the number of spaces.
- You can charge only on nights and weekends and keep the lot free for tenants during business hours.
- Tenant validations and VIP passes protect the people who already park on your lot.
- If you are already towing cars, you already have demand. Those drivers would likely have paid to park.
- With HAH, qualified lots can start with no upfront cost on a month to month agreement.
How much money can I make from my parking lot?
There is no single number, because the biggest factor is where your lot sits. A lot in a high demand area will make more money than a lot that is three blocks from that area, even if the second lot is bigger.
Revenue comes from four things working together: how many drivers want to park near you, how many hours you sell, what you charge, and how well you collect. If you want to see the math behind it, our guide on how to calculate parking lot revenue walks through it step by step.
What decides how much a parking lot can earn?
Demand in the area decides most of it. When we look at a lot for the first time, we start with what is around it, then work out the hours and rates that fit.
- Location. Lots close to restaurants, bars, offices, events, and busy downtown streets fill up. Lots a few blocks away often do not.
- Nearby demand. If drivers already park on your lot without permission, or you see people walking from your lot to the restaurant next door, the demand is proven.
- Hours you sell. Some lots work best open around the clock. Others earn the most on nights and weekends.
- Rates and pass types. Short stays, day passes, and monthly passes each attract different drivers. The right mix depends on who parks near you.
- Collection and enforcement. A lot only earns what it collects. Clear signs and a simple way to pay matter as much as the rate.
Can I charge for parking only on nights and weekends?
Yes. If tenants need the lot during the day, you can keep it free during business hours and charge only after hours and on weekends.
Office complexes, law offices, and doctor's offices are great candidates. Their lots sit full from nine to five and empty every evening, often right when nearby restaurants and venues are busiest. Charging during those empty hours turns unused spaces into income without changing anything for the people who park there during the day.
Will charging for parking upset my tenants?
It does not have to. The most common worry we hear from owners is "I don't want to upset the people who are already here," and there are simple ways to protect them.
- Tenant validations. Give customers of your tenants a set amount of free parking.
- VIP vehicles. Register employees and regular users so they always show as having a valid pass.
- Temporary VIP passes. Cover short term needs like contractors, visitors, or a tenant's busy week.
The other common worry is enforcement. Owners do not want to become parking cops. HAH gives you a set of parking enforcement tools and helps you choose the approach that fits your lot, which can include working with a third party towing company so the lift on your end stays small.
What does this look like for a real owner?
A familiar story starts with a downtown owner who keeps towing cars. People park on the lot to walk to the popular restaurant next door. The owner is already dealing with the headache of enforcement, and the drivers getting towed are upset.
Then the owner realizes those drivers would have paid to park if there had been a way to pay. Once the lot starts charging, the same demand that was causing problems starts producing real revenue.
"Most owners we talk to are already doing enforcement. They are towing cars, and the people getting towed would have paid to park if they could. If drivers want your spaces, the demand is already there. Start charging for it." Morgan Hurley, Chief Revenue Officer, HAH Parking
The same idea works for commercial properties. In one of our partner locations, a 42 space commercial lot in suburban Charleston added $123K in parking revenue, raising total property revenue from $345K to $468K.
Is my parking lot too small to make money?
Probably not, if it is in the right place. In busy infill areas with lots of restaurants and very little parking, lots with as few as 10 spaces can do very well.
Small lots in those areas see steady transient demand, especially on nights and weekends. The key is making the lot obvious: clear signs that tell drivers they can park and how to pay. When the location is right, a small lot can earn more per space than a large one in a quieter area.
How do I get started, and what does it cost?
Getting started is simple, and qualified lots pay nothing upfront. HAH earns a share of the parking revenue, so we earn when you earn.
- A quick call and demo. We show you the platform and look at the demand around your lot.
- A month to month agreement. No upfront cost for qualified lots and no long term contract.
- Signs go up. We provide and install signage at no cost for qualified lots. Drivers pay by text, so there is no kiosk and no one collecting cash.
- Rates and enforcement are set. We run a market analysis of nearby rates and help you choose pass lengths, from 30 minutes to monthly. That becomes your base rate. Once the lot has history, we add scheduled surges and dynamic parking pricing to raise revenue per transaction.
- You go live. Most lots are up and running in two to three weeks, with training on your dashboard and regular check ins after launch.
Once you are live, the live parking dashboard shows who is parking, how many passes you sell each day, your revenue, your revenue per transaction, and enforcement activity. If you think you are undercharging, you can change your rates yourself, or work with our team each month to find the price that earns the most without driving customers away.
How do I estimate what my own lot could earn?
The fastest way is to plug your lot into a revenue estimate. Enter a few details about your lot and you will see a realistic range of what it could earn. For the bigger picture on costs and profit, read how profitable a parking lot really is.
See what your lot could earn with the Revenue Upside Calculator
