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Starting a Parking Lot Business

Parking lot is a necessity in every commercial establishments as well as public places.

Many lot owners near these places opt to start a parking lot business. This kind of facility offer valet services where visitors can park their cars.

Parking lots and garages are common in most places near commercial establishments and urban locations. Working people who drive their own car need a place where they can park their vehicles while at their office. If you have available lot near in-demand area, starting a parking lot business is a good idea. This is an easy money making business in which you can obtain huge profit in just a short period. However, there are some aspects to consider when planning starting this profitable business.

Acquisition of Property

If you want to start a parking lot business, the first thing that you should do is to obtain lot. However, if you have an existing property that you can utilize as parking lot, it would be an advantage. Nevertheless, there are several options that you can choose when acquiring piece of land. You can purchase foreclosure property or buy an existing parking lot or garage. You should consider the feasibility of the location and it should be in high-traffic area. The best place to consider when developing a parking lot is the urban areas. Ideal locations include airports, busy tourist attractions, sports arenas and campuses. Prior of purchasing land you should ensure that the area is mixed-use area.

Preparation of the Area

After acquiring a piece of land, the next step to do is to prepare and develop the area. Make sure that your facility is appropriate and can accommodate parking vehicles. The pavement should be properly finished and no potholes available. Likewise, the pavement should be lines-painted if it is a self-parking area to determine the boundaries of each parking vehicle. On the other hand, building a perimeter fence around the parking lot is significant if the parking lot is in a high-crime location. Likewise, a surveillance camera can also help in monitoring the safety of the area.

Establishing Liability Insurance

Once you start a parking lot business, it is your responsibility to protect all the vehicles parked in your facility. That is why investing in a business liability insurance is very important. It is not enough to employ the safety of all the properties through safeguarding but it is also necessary to obtain liability insurance. In this way you need not worry if something unpleasant happen to one of the vehicles parked because the insurance provider will be the one to handle all the concerns. In addition, determining the rates should be done as soon as you make your business plan. You can choose either hourly or daily rates. You can also offer lease or parking space to some good clients.

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3 Comments

  • Sharon Macarty said on June 4, 2016
    I have flat, suitable land that I would like to develop into a 2 acre parking lot for TV's and Boats. I am going to use a 4 inch gravel base and fence the entire area with 6' tall chain link fencing 3 barb wires across the top of the fence. I am going to install a street light off center 220 feet back from the main road entrance. The property is located in the County and I am open to any suggestions.
  • Mr. Royal said on December 15, 2016
    @sharonmacarty I don't have any suggestions but you sound like you have what it takes. I wish you the best of luck and know that you will obtain the information you need!
  • Mr. Rasul said on March 27, 2017
    I am interested in starting one. I have a freehold land? would that work? also I need to know the permit and tax that I would need to pay. Any suggestions?

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