Ancillary income sources like parking can contribute up to 10% to revenue for multifamily operators, however many property owners overlook parking as a revenue driver and often underprice it compared with market rates. As multifamily faces increasing operating costs, revenue sources like parking can be critical, according to Neighbor Storage Inc.’s multifamily parking intelligence report.
Neighbor studied 10 US markets to evaluate pricing for parking. In eight of those markets, the market rate for parking was an average of 162% higher than the multifamily rate for covered parking. This gap represents an opportunity of $47,000 to $189,000 in NOI per property per year if operators optimize their prices, the report said.
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