Written by: Zarah Mae Torrazo is the Head of Content at Spacer Technologies, where she leads content creation for Parkhound, Spacer.com, Spacer.com.au, and WhereiPark. With nearly a decade of experience in digital content, Zarah specializes in crafting engaging, SEO-optimized writing that bridges both B2B and B2C audiences. Her work spans a wide range of industries from real estate and finance to mobility, health, and tech, with a focus on turning complex ideas into clear, actionable insights. At WhereiPark, Zarah writes extensively about multifamily property management, urban mobility trends, and the monetization of underused assets like parking. She’s particularly passionate about the sharing economy and its power to reshape how people and businesses access space, transport, and opportunity.
Edited by: Louise is a content producer with over a decade of experience writing about a wide variety of topics from home improvement to academic and scientific reports, and financial literacy and cryptocurrency — but her finance and crypto content are for education purposes only and should not be taken as advice because there are licensed experts for that.Louise is enthusiastic about reinforcing financial literacy and anything that can aid people in minimising expenses and maximising savings, which led to her passion for the sharing economy.She aims to educate people by translating complex information into easy-to-digest facts and practical tips for maximum understanding and minimum migraine. Have any questions about content that you’d like to ask Louise? Drop her an email at Louise@spacer.com.
Reading time: 23 mins
The most practical approach is to price parking based on how much demand exists and how usable each space actually is.
Covered, well-lit spaces close to elevators typically command higher rates, while less accessible spots are priced lower.
Before we talk about how to price your parking, let’s explore whether you should charge for parking at all.
Charging for parking can be effective when demand is high or parking access is limited, such as in the following cases:
Not every apartment building should charge for parking. The decision depends on whether parking regularly fills up, whether space is limited, and whether legal or affordability rules restrict fees.
In North America, some apartment buildings operate under affordability programs or agreements that control what residents can be charged beyond base rent. These rules typically apply to income-restricted, subsidized, or deed-restricted housing, not standard market-rate apartments.
In the U.S., this often includes:
In Canada, similar restrictions can apply to municipally funded or non-profit housing, though market-rate rentals generally have more flexibility.
For market-rate apartments, affordability rules usually do not apply. Parking pricing is typically allowed as long as it aligns with lease terms and local regulations.
When working with multifamily property owners and managers, Chief Revenue Officer at WhereiPark Josh Eisen often sees pricing decisions made before demand is fully understood. His advice is to start by looking at how parking is actually used day to day:
“Before setting prices, it’s important to understand whether parking is actually in demand. Charging works in buildings where spaces are limited. In buildings with excess parking, it usually creates more frustration than value.”
WhereiPark helps apartment buildings manage parking pricing and availability by listing unused spaces,
adjusting access as demand changes, and reducing manual administration.
This is the easiest place to start. If parking is full most evenings or residents complain about finding a space, demand is probably higher than supply
If large sections of the garage are still empty at night, there’s usually no pressure to charge or raise prices.
Residents don’t value every spot the same. You can often tell which spots matter just by seeing which ones fill up first.
Covered spaces, spots near elevators, or well-lit areas are usually taken first. Spots that require drivers to do long walks, tight turns, or low clearance tend to sit empty unless they’re cheaper.
Assumptions about car ownership are often wrong. Some residents don’t have cars. Others have one car but access to more than one space.
Looking at how many vehicles are actually parked compared to how many units are leased usually tells you more than surveys do.
When parking is free or very cheap, it often turns into storage.
Cars that barely move still take up space. That reduces availability for residents who rely on parking every day and usually leads to complaints over time.
There is no single pricing model that works for every apartment building. The right approach depends on how parking is used, how limited supply is, and how much variation exists between each parking space.
Apartment buildings typically use a few pricing models. Each can work well in the right setting and cause problems in the wrong one.
This model charges the same monthly price for every parking space.
Works best when:
Doesn’t work when:
Prices vary based on how convenient or desirable a space is.
Works best when:
Doesn’t work when:
Reserved parking guarantees a specific spot. Unreserved parking allows first-come, first-served use.
Works best when:
Doesn’t work when:
This model sets aside parking for short-term or visitor use.
Works best when:
Breaks down when:
When advising multifamily property owners and managers, Mr. Eisen says the model itself usually determines whether parking runs smoothly or becomes a source of complaints:
“Pricing problems often come from using the wrong model and not the wrong price. Buildings that match pricing structure to how parking is actually used tend to see fewer disputes, better utilization, and more predictable outcomes,” he said.
For a deeper look at how different pricing and allocation models affect parking performance in multifamily buildings, this guide on monetizing extra parking assets in multifamily properties expands on those principles in practice. You can also find real-world examples in WhereiPark’s multifamily case studies.
Parking prices work best when they’re based on local alternatives and real usage signals, not assumptions or target revenue. Waitlists, complaints, and unused spaces are often clearer indicators than any single dollar figure.
On-site parking competes with nearby options. These options define the upper and lower bounds of what residents are likely to accept.
Look at:
Replacement cost is what a resident would pay if on-site parking wasn’t available.
If nearby parking is expensive or inconvenient, on-site spaces hold more value. If residents can easily park on the street or in a nearby garage for little or no cost, pricing pressure is lower.
Waitlists are one of the clearest signs of underpricing.
When residents are willing to wait for a spot, it usually means demand exceeds supply at the current price. Long or persistent waitlists suggest prices are too low, not that demand is unpredictable.
On the other hand, empty spaces at peak times often signal that pricing may be too high or unnecessary.
Parking prices don’t need to be precise. Most buildings perform better when pricing sits within a sensible range rather than aiming for a “perfect” number. Small adjustments over time tend to work better than large jumps, especially in residential settings.
The most useful pricing data appears after changes are made.
If a price increase reduces waitlists without leaving spaces empty, pricing is closer to where it should be. If spaces suddenly go unused, pricing may have overshot.
Not all parking spaces offer the same experience. In many apartment buildings, a small group of spots consistently attracts the most demand. Premium pricing works when it reflects those differences rather than treating every space as equal.
Premium pricing is usually justified when demand clusters around specific features:
When these features exist, residents tend to compete for the same spots. Pricing helps manage that demand more predictably.
Without pricing, premium spots are often allocated through waitlists, informal transfers, or repeated complaints. That can lead to frustration and inconsistent outcomes.
Pricing creates a clear, transparent way to decide who uses the most desirable spaces. Residents who value those features most can opt in, while others choose standard parking without feeling disadvantaged.
Before changing how parking is priced, buildings need to understand what current lease documents allow.
In most cases, parking terms set in an active lease cannot be changed mid-term.
This approach reduces risk and avoids unexpected changes for current residents.
Lease language that is too specific can limit future pricing decisions.
Many buildings avoid listing exact parking prices in the lease itself. Instead, they reference parking as an optional service or addendum with pricing that may change with notice. This allows pricing to adjust as demand, supply, or building needs change.
Clear but flexible language also helps prevent misunderstandings about what parking is included and what is optional.
Parking addendums are often used to separate parking terms from the main lease.
This makes it easier to:
Disclaimer: Parking rules can be affected by local regulations, funding requirements, or building-specific agreements. These factors vary widely by location and property type.
This section is for general information only and does not constitute legal or financial advice. Lease terms and pricing decisions should be reviewed with qualified legal or financial professionals before changes are made.
Parking pricing changes tend to go more smoothly when residents know what’s coming and understand how the rules work. Clear timing and consistent application matter more than the exact price.
No one likes paying for something that used to be free or cheap. What people like even less is being caught off guard by a price hike or a new expense.
Give residents notice before any changes take effect, ideally tied to lease renewals or new leases. Explain what is changing, when it starts, and who it applies to. Avoid overexplaining or justifying the decision.
Be clear about who the pricing applies to. Residents should know whether the change affects new move-ins, lease renewals, or only certain types of parking spaces.
Related article: Choosing the Right Renters: Who Should You Target to Lease Your Unused Parking Spaces?
This is in line with the earlier point of communicating clearly with your residents. Residents usually raise the same questions:
Make sure to have direct and clear answers ready to avoid confusion.
Most issues come up when rules change from one person to the next. Keeping pricing consistent makes it easier for residents to understand what to expect.
Parking pricing works best when it’s reviewed regularly and adjusted in small steps. The goal isn’t constant change, but making sure prices still reflect how parking is actually being used.
You don’t need many metrics to know whether pricing is working.
Evening and overnight occupancy are the clearest indicators. If parking is regularly full at those times, pricing is likely too low. If spaces are still open, pricing may be too high or unnecessary.
Waitlists are another strong signal. A persistent waitlist usually means demand exceeds supply at the current price. Long-term empty spaces suggest the opposite.
Not every change in usage calls for a pricing update. Short-term shifts tied to holidays, move-ins, or construction usually settle on their own. Pricing changes are also best avoided mid-lease, when expectations are already set.
Parking pricing works best when it evolves gradually.
Small adjustments followed by observation are more effective than large, reactive changes. Buildings that review pricing at regular intervals and respond to clear patterns tend to avoid both empty garages and ongoing disputes.
Parking management tools become necessary when pricing and allocation decisions grow too complex to manage reliably by hand.
Pricing Complexity Increases
Manual systems start to break down once buildings introduce multiple prices for different space types, such as standard parking, premium spots, EV charging, or guest use. Keeping prices accurate and aligned with demand becomes harder over time.
As demand changes, spaces need to be reassigned, released, or repurposed. It’s easy to lose track of availability or apply rules inconsistently, even when pricing decisions are sound without a structured system.
What begins as a manageable task often grows into a steady stream of updates, exceptions, and resident questions. Manual processes stop being reliable when staff time is spent maintaining parking records instead of managing the building.
At this point, tools like WhereiPark are used to support pricing and allocation by centralizing visibility into how parking is used over time. This helps property teams manage complexity consistently without relying on spreadsheets or ad hoc decisions.
Parking prices should reflect local alternatives and how full parking gets at peak times. Long waitlists usually mean prices are too low, while empty spaces suggest pricing may be too high or unnecessary.
Charging separately works best when parking is limited or varies by quality. Bundling parking into rent makes more sense when parking supply consistently exceeds demand.
Yes. Spaces that are covered, closer to entrances, well-lit, or secured are often priced higher than less convenient spaces.
Parking prices should change only when demand patterns shift. Seasonal or short-term changes usually do not require price updates.
When parking is priced separately, residents can choose not to rent a space. This helps allocate parking to those who need it without increasing costs for others.
Parking tends to work best when pricing reflects how spaces are actually used. Clear rules, sensible price differences, and regular review help ensure that parking is available for the residents who need it, while avoiding unused space or ongoing disputes.
Tools can support this process by making it easier to track usage patterns, manage changes, and apply rules consistently over time. Platforms like WhereiPark act as enablers, helping property teams implement structured pricing decisions without relying on manual processes, but the outcomes still depend on thoughtful setup and ongoing management.
Zarah Mae Torrazo is the Head of Content at Spacer Technologies, where she leads content creation for Parkhound, Spacer.com, Spacer.com.au, and WhereiPark. With nearly a decade of experience in digital content, Zarah specializes in crafting engaging, SEO-optimized writing that bridges both B2B and B2C audiences. Her work spans a wide range of industries from real estate and finance to mobility, health, and tech, with a focus on turning complex ideas into clear, actionable insights. At WhereiPark, Zarah writes extensively about multifamily property management, urban mobility trends, and the monetization of underused assets like parking. She’s particularly passionate about the sharing economy and its power to reshape how people and businesses access space, transport, and opportunity.
Zarah Mae Torrazo is the Head of Content at Spacer Technologies, where she leads content creation for Parkhound, Spacer.com, Spacer.com.au, and WhereiPark.
With nearly a decade of experience in digital content, Zarah specializes in crafting engaging, SEO-optimized writing that bridges both B2B and B2C audiences. Her work spans a wide range of industries from real estate and finance to mobility, health, and tech, with a focus on turning complex ideas into clear, actionable insights.
At WhereiPark, Zarah writes extensively about multifamily property management, urban mobility trends, and the monetization of underused assets like parking. She’s particularly passionate about the sharing economy and its power to reshape how people and businesses access space, transport, and opportunity.
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