How Much to Charge for a Parking Space in Los Angeles, CA: A Guide for Apartment Building Owners

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Neighbor.com contacted 40 multifamily properties in the greater Los Angeles area (Mid-Wilshire, Downtown Los Angeles, South Los Angeles, Hollywood, etc.) for insights into their resident parking prices. 

The goal of this research? To provide LA-based multifamily property owners with the data they need to make informed decisions about their parking prices. 

Warning: these findings may surprise you. 

Findings of Neighbor.com’s Los Angeles Parking Research 

Between multifamily properties, resident parking rates can vary by as much as 300%, even if those properties are located in the same neighborhood.  

When deciding how much to charge for parking space, it’s usually advised that property owners consider what their competitors are charging for resident parking. 

But what should you charge for your parking spots if the competitor down the street is charging $50/month while the property next door is charging close to $200/month? Do you err on the low end of the spectrum or meet somewhere in the middle? 

The answer is nuanced. Parking prices should always be set according to a) market rate, b) parking type, c) parking ratio, and d) whether the space is assigned vs. unassigned–among other factors. 

Read on for more insights on how to optimize your resident parking prices. 

How Much Should I Charge for a Space in an Uncovered Parking Lot? 

Types of uncovered parking options: Uncovered surface lots, rooftop spaces in multi-level parking garages, etc. 

Of the 40 multifamily properties sampled, 28% currently offer uncovered parking to residents–but only 27% of that 28% charge residents additional fees to park in those uncovered lots; the remaining 72% offer free, on-site parking as an amenity. 

Of those properties that charge for uncovered parking, the average parking rate for LA is around $62/month (Note: This ~$62/month is a separate, unbundled fee charged on top of monthly rent fees, utilities, storage, etc.) 

Market Name Raw Average Charged Average% of Properties That Offer Uncovered Parking% of Properties That Charge for Uncovered Parking 
Los Angeles$16.73/mo$61.33/mo28%27%

*Definition of “Raw Average”: This average includes properties that offer residents free parking (whether uncovered or covered), as well as those properties that charge residents additional fees for a given type of parking space. 

**Definition of “Charged Average”: This average excludes those properties that offer free parking. It only represents those properties that charge residents additional fees to park in their on-site parking facilities.

How Much Should I Charge for a Space in a Covered Parking Structure? 

Types of covered parking options: Private carports, enclosed/open-air parking garage spaces, private residential garage spaces, etc. 

Of the 40 multifamily properties sampled, 95% offer one or more types of covered parking. Of those 95% of properties that offer covered parking, 88% of that 95% charge residents to park in these covered parking spots.

Of those properties that charge for covered parking (private carports, parking garage spaces, private garage spaces, etc.), the average parking rate for LA is around $78/month (Note: This ~$78 /month is a separate, unbundled fee charged on top of monthly rent fees, utilities, storage, etc.) 

Market Name Raw Average Charged Average% of Properties That Offer Covered Parking% of Properties That Charge for Covered Parking 
Los Angeles$67.89/mo$77.59/mo95%100%

*Definition of “Raw Average”: This average includes properties that offer residents free parking (whether uncovered or covered), as well as those properties that charge residents additional fees for a given type of parking space. 

**Definition of “Charged Average”: This average excludes those properties that offer free parking. It only represents those properties that charge residents additional fees to park in their on-site parking facilities.

Factors to Consider When Setting Parking Prices 

Factor #1: Parking Structure Type 

Across the U.S., covered parking is charged at a higher rate than uncovered parking. Why? Tenants perceive covered parking as an amenity of value, given that it offers protection from direct sunlight, hail, rain, snowfall, debris, etc. 

In Los Angeles specifically, covered parking is (on average) around 26% more expensive than uncovered parking. In other words, a space in an enclosed LA parking garage will be about 26% more expensive than one in a standard LA surface lot. 

Factor #2: Parking Space Type 

Multifamily parking spaces will fall into one (or multiple) of the following categories: standard/single, tandem, compact, stacked, and/or EV charging spaces

Compact Spaces 

Compact spaces are set at lower rates than standard parking spaces, as these spaces take up less square footage. 

Tandem Spaces

Tandem spaces, however, are charged at higher rates than standard/single parking spaces. However, some properties offer bundled parking rates for tandem parking spaces. For instance, a property may charge $200/month for each standard parking space but set a discounted rate of $300/month for tandem parking spaces. 

EV Spaces

Spaces with EV charging are set at varying price points, depending on whether these spaces are communal charging stations or assigned EV charging spaces. Typically, when communal charging stations are available on-site, they are free for residents to use on a first-come-first-served basis. On the other hand, assigned EV charging spaces are almost always charged at a rate that’s higher than the rate of a standard parking space. 

In Neighbor’s sample of 240 multifamily properties nationwide, 42% said they offer EV charging options for residents. Of that 42%, 13% cited that EV charging was completely free for residents. 36% mentioned that residents are charged third-party fees through the charging provider. 38% charge residents a monthly fee to rent a private EV parking space. The remaining 17% of the sample did not specify price. 

Factor #3: Whether the Space is Assigned vs. Unassigned 

You may assume that assigned parking is, historically, charged at higher rates than unassigned parking, as guaranteed parking is, undeniably, a perk. However, Neighbor.com’s data tells a slightly different story.

 We see a greater price discrepancy between unassigned and assigned parking spaces when those spaces are uncovered. However, when a space is covered, the price difference between assigned and unassigned spaces is minimal. 

But that doesn’t mean there isn’t inherent value in an assigned parking space. Assigned parking has plenty of pros (for both property owners and the parkers themselves): 

  • It’s predictable: Tenants don’t have to hunt for a parking space after a long commute. 
  • There’s controlled access: You reduce the likelihood that non-residents or other unauthorized vehicles park in a tenant’s parking space.
  • This sets your lot/garage apart from other commercial parking options: Parking near public transit hubs or shopping centers will, in most cases, be unassigned parking. By offering assigned parking, you incentivize parkers to store their vehicle in your facility. 

When you provide extra value, you can justify extra costs. To most renters, transitioning from unassigned to assigned parking will be a reasonable justification for a moderate parking price increase. 

Should you choose to implement parking price increases property-wide, you increase the risk of resident dissatisfaction. If tenants voice complaints about the price hikes, remind them of the benefits cited above. 

Factor #4: Market Rate (Location) 

Neighbor.com’s research showed that professional parking operators in larger cities (like LA)  charge ~162% more (on average) than multifamily property owners, even though they’re marketing virtually identical parking spaces. 

When comparing a multifamily parking garage to a standard downtown parking garage, these facilities will often be located in the same desirable locations and offer many of the same amenities (EV charging, installed security cameras, etc.) 

So, what’s the explanation behind these dramatic price differences?

Parking experts like Ralph Johnson, the National Parking Association’s “40 under 40,” weigh in here. From their perspective, there are very few reasons why multifamily property owners should be charging 70% less for parking than a parking operator located in the same neighborhood. 

Want to know how the market parking rate in Los Angeles compares to the average multifamily parking rate? Keep reading. 

Multifamily Parking Rates vs. Market Rates (Uncovered Parking)

In Los Angeles, commercial parking facilities charge (on average) around 176% more for uncovered parking than multifamily properties in the area. 

Market Name Avg. Multifamily Parking Price Avg. Market Parking PricePrice Difference ($) Price Difference (%) 
Los Angeles$61.33/mo$169.56/mo+$108.23/mo+176%

Multifamily Rate vs. Market Rate (Covered Parking)

In Los Angeles, commercial parking facilities charge (on average) around 196% more for covered parking than multifamily properties in the area. 

Market Name Avg. Multifamily Parking Price Avg. Market Parking PricePrice Difference ($) Price Difference (%) 
Los Angeles$77.59/mo$229.66/mo+$152.07/mo+196%

By setting resident parking prices at 50-70% of the market rate, multifamily properties can maintain competitive pricing, all while earning an additional $39k in NOI (roughly) per year per property. 

Factor #5: Parking Ratio 

In Los Angeles, the average parking ratio is 1.6. Meanwhile, the average # of vehicles per household is also 1.6.

In markets where the average number of vehicles per household exceeds the average parking ratio, demand will outweigh supply. In that case, property owners will have the leeway to increase parking prices due to higher demand.

But how will parking limitations impact resident satisfaction? There are a couple of creative ways property owners can still meet the parking needs of their residents (despite the low inventory). One option is to expand existing parking facilities or introduce more parking structures. Another option is to recommend platforms like Neighbor to tenants looking for a parking spot nearby. 

Factor #6: Ratio to Rent 

Property managers and owners should always consider a resident’s purchasing power when setting on-site parking prices. 

Looking at 240 multifamily properties across 10 top US markets (Los Angeles, New York, Salt Lake City, Seattle, San Francisco, Miami, Washington D.C., Phoenix, Denver, and San Diego), parking fees fell, most commonly, within 3-4% of total monthly rent costs. 

These % averages varied between covered and uncovered parking (as seen in the charts below): 

Generally speaking, Neighbor’s parking experts recommend that resident parking rates equate to 8-10% of your residents’ average monthly rent costsif the goal is to boost NOI and increase property valuation

Factor #7: Recommendations from Parking Pricing Tools and Other Experts 

Note that pricing should not be set according to the city-level averages included in this report. Instead, pricing should be set at the property level, accounting for the hyperlocal market and resident dynamics. 

For local parking pricing data and customized pricing recommendations, property owners can contact Neighbor’s team for a free demo and a personalized portfolio analysis. 

When Are Free Parking Spots the Best Pricing Strategy?

Some multifamily property owners will consciously choose not to charge their residents additional parking fees (on top of monthly rent costs). Instead, they’ll either a) bundle parking fees into monthly rent costs or b) offer free parking to tenants for one (or more) of the following reasons:

  • Free (or included) resident parking can set one property apart from its local competitors. 
  • Free (or included) resident parking can be advertised in marketing materials as an amenity, attracting new prospective residents and retaining existing ones. 
  • Free (or included) resident parking can incentivize new residents to park on-site rather than seeking out more affordable third-party parking options. 

Making Adjustments to Your Resident Parking Prices 

It’s recommended that multifamily owners exercise the utmost caution when rolling out changes to parking pricing. If owners were to optimize for revenue alone (and overlook resident purchasing power), both resident satisfaction and vacancy rates could be negatively impacted. 

To avoid backlash, multifamily property owners should take the following precautions: 

  • Before announcing parking price increases, property owners should decide whether they plan to fully migrate to assigned parking or offer a mix of both assigned and unassigned parking options. If the latter, spaces should be priced proportionately to their value. 
  • Test this assigned parking program with new/prospective residents before rolling out the program to existing tenants. 
  • If this test period validates that assigned parking is an amenity that residents are willing to pay for, begin advertising the benefits of reserved parking to existing residents.
  • Avoid off-cycle increases. Instead, implement modest price hikes at the time of lease renewal. 

When executed thoughtfully and strategically, resident parking price optimizations can have a seismic impact on ancillary revenue.

Optimizing parking prices (as well as other ancillary revenue channels) is also a great alternative to raising rents

For pricing data in the top 10 US markets (including L.A.), as well as cutting-edge parking optimization strategies, download the 2025 Multifamily Parking Intelligence report here. 

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