It's not just vacant units that are worth reviewing in rental property management — unused parking spaces and unused areas on the property are worth a second look too. Here's an overview of the main ways to make use of them, and the points worth keeping in mind when you do.
- Ways to make use of vacant parking spaces and unused areas include monthly parking, trunk rooms, and leasing to an external operator.
- Which method suits your property depends on its location, size, and demand in the surrounding area.
- There are things worth checking before starting — such as zoning restrictions and consideration for neighbors.
- Some methods let you start with minimal upfront investment, while others require a certain amount of capital spending.
- It's worth comparing several options before deciding on a method.
Why Vacant Parking Spaces and Unused Areas Arise
Tenants moving away from car ownership, along with shifts in parking demand generally, can leave parking spaces sitting empty. Unused areas that arise from a building's layout on the lot can also go unused for long stretches. Both tend to sit there generating no income, which makes them worth a second look. Left unaddressed, a space that only costs money to maintain becomes a burden on the numbers that's hard to ignore.
Using the Space as Monthly Parking (Tsukigime Chūshajō)
One option is to rent out an empty parking space as monthly parking (tsukigime chūshajō), open to people outside the building as well as tenants. After checking parking demand and going rates in the area, asking a property management company or real estate agency to handle marketing can turn it into an additional source of income. Properties near commercial facilities or offices tend to find it easier to attract demand beyond their own tenants.
Using the Space as a Trunk Room or Rental Storage
Another option is to use unused space on the property as a trunk room or rental storage. Partnering with a specialist operator can offer a setup where you earn rental income while keeping the hassle of installation and operation to a minimum. Container-type units that fit into small spaces are also available, so this option offers fairly high flexibility.
Leasing to an External Operator (Coin Parking, etc.)
You can also hand over the management and operation of the parking space to an external operator, such as a coin parking company. In exchange for leaving equipment investment and day-to-day operation to the operator, you typically receive income based on rent or sales. Since the best format varies by location, it's worth checking terms with several operators. Contract length and the terms for early termination are also worth confirming when comparing options.
Points to Check Before Starting (Zoning District, Neighbors, etc.)
Before putting unused space to use, it's worth checking things like restrictions under the applicable zoning district (yōto chiiki), the effect of noise and traffic on neighbors, and any impact on existing tenants' parking. Especially where outside users will be coming and going, it's worth thinking through security and how to prevent friction with neighbors. If nighttime access is expected, installing lighting is worth considering as well.
How to Think About Choosing a Method
The right method depends on whether you want to keep upfront costs low or are willing to invest to boost returns. It's worth comparing options that suit your property's location and characteristics while consulting a property management company or a specialist operator. In some cases it's possible to combine more than one method, so it's worth staying flexible in how you think about it.
Frequently Asked Questions
What kinds of contracts are used for making use of unused space?
Options include a lease agreement for monthly parking, a business contract with a trunk room operator, and leasing the whole space to an external operator — among other arrangements.
Is there a way to make use of the space without upfront costs?
Handing operation over entirely to an external operator can sometimes keep the burden of equipment investment down. Contract terms vary by operator.
What should I check before starting to use the space?
You'll want to check zoning restrictions, the effect on neighbors, and any impact on existing tenants. It's worth proceeding in consultation with a property management company.
Summary
There are several ways to make use of vacant parking spaces and unused areas — monthly parking, trunk rooms, and leasing to an external operator among them. It's worth comparing your options in light of your property's location, characteristics, and how much you want to spend upfront.