{"id":15729,"date":"2025-01-31T13:51:00","date_gmt":"2025-01-31T20:51:00","guid":{"rendered":"https:\/\/www.neighbor.com\/storage-blog\/?p=15729"},"modified":"2025-02-20T16:44:07","modified_gmt":"2025-02-20T23:44:07","slug":"how-much-to-charge-for-a-parking-space-in-los-angeles","status":"publish","type":"post","link":"https:\/\/www.neighbor.com\/storage-blog\/how-much-to-charge-for-a-parking-space-in-los-angeles\/","title":{"rendered":"How Much to Charge for a Parking Space in Los Angeles, CA: A Guide for Apartment Building Owners"},"content":{"rendered":"\n

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

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

Warning: these findings may surprise you. <\/p>\n\n\n\n

Findings of Neighbor.com’s Los Angeles Parking Research <\/h2>\n\n\n\n

Between multifamily properties, resident parking rates can vary by as much as 300%<\/strong>, even if those properties are located in the same neighborhood.  <\/p>\n\n\n\n

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. <\/p>\n\n\n\n

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? <\/em><\/p>\n\n\n\n

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

Read on for more insights on how to optimize your resident parking prices. <\/strong><\/p>\n\n\n\n

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How Much Should I Charge for a Space in an Uncovered Parking Lot? <\/h2>\n\n\n\n

Types of uncovered parking options: <\/em><\/strong>Uncovered surface lots, rooftop spaces in multi-level parking garages, etc. <\/em><\/p>\n\n\n\n

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. <\/p>\n\n\n\n

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

Market Name <\/strong><\/td>Raw Average <\/strong><\/td>Charged Average<\/strong><\/td>% of Properties That Offer Uncovered Parking<\/strong><\/td>% of Properties That Charge for Uncovered Parking <\/strong><\/td><\/tr>
Los Angeles<\/strong><\/td>$16.73\/mo<\/td>$61.33\/mo<\/strong><\/td>28%<\/td>27%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

*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. <\/em><\/p>\n\n\n\n

**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.<\/em><\/p>\n\n\n\n

How Much Should I Charge for a Space in a Covered Parking Structure? <\/h2>\n\n\n\n

Types of covered parking options:<\/em><\/strong> Private carports, enclosed\/open-air parking garage spaces, private residential garage spaces, etc. <\/em><\/p>\n\n\n\n

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.<\/p>\n\n\n\n

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

Market Name <\/strong><\/td>Raw Average <\/strong><\/td>Charged Average<\/strong><\/td>% of Properties That Offer Covered Parking<\/strong><\/td>% of Properties That Charge for Covered Parking <\/strong><\/td><\/tr>
Los Angeles<\/strong><\/td>$67.89\/mo<\/td>$77.59\/mo<\/strong><\/td>95%<\/td>100%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

*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. <\/em><\/p>\n\n\n\n

**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.<\/em><\/p>\n\n\n\n

Factors to Consider When Setting Parking Prices <\/h2>\n\n\n\n

Factor #1: Parking Structure Type <\/h3>\n\n\n\n

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

In Los Angeles<\/strong> specifically, covered parking is (on average) around 26% more expensive<\/strong> 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. <\/p>\n\n\n\n

Factor #2: Parking Space Type <\/h3>\n\n\n\n

Multifamily parking spaces will fall into one (or multiple) of the following categories: standard\/single<\/strong>, tandem<\/strong>, compact<\/strong>, stacked<\/strong>, and\/or EV charging spaces<\/strong>. <\/p>\n\n\n\n

Compact Spaces <\/h4>\n\n\n\n

Compact spaces are set at lower rates than standard parking spaces<\/strong>, as these spaces take up less square footage. <\/p>\n\n\n\n

Tandem Spaces<\/h4>\n\n\n\n

Tandem spaces<\/strong>, however, are charged at higher rates than standard\/single parking spaces<\/strong>. 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. <\/p>\n\n\n\n

EV Spaces<\/h4>\n\n\n\n

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<\/strong> are available on-site, they are free for residents to use<\/strong> 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. <\/p>\n\n\n\n

In Neighbor’s sample of 240 multifamily properties nationwide, 42% said they offer EV charging options for residents<\/strong>. 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. <\/p>\n\n\n\n

Factor #3: Whether the Space is Assigned vs. Unassigned <\/h3>\n\n\n\n

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.<\/em><\/p>\n\n\n\n

 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. <\/p>\n\n\n\n

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