When people who own a car live in an apartment building, securing parking is always a key consideration. Because apartment buildings are not legally required to provide parking, some landlords may be unsure whether to install it. However, in regional areas car travel is essential, and even in urban areas the presence or absence of parking has a major impact on leasing decisions. This article explains in detail the types of parking, the options best suited to apartment buildings, and common contract arrangements.
What are the main types of parking lots?
Parking lot structures can generally be divided into 4 types.
Surface parking lot
A surface parking lot is a parking area on flat ground with no height restrictions. One advantage is that initial and management costs can be kept lower. There are four main usage types as follows.
- Locking system: A system in which a vehicle drives over a lock plate, a sensor responds, and the lock plate rises.
- Lockless system: A system that manages vehicles using pole sensors. Because there is no lock plate, there is no risk of damaging the underside of the car.
- Gate system: A system in which a gate bar opens and closes when vehicles enter and exit, and it is often used for large parking facilities.
- Ticket system: A system in which a ticket is issued on entry and payment is made on exit.
Multi-level parking structure
A multi-level parking structure is a parking facility with multiple floors in a building format. It offers the advantage of accommodating many vehicles on limited land, but construction costs are higher.
Self-parking structure
A self-parking structure is a type in which drivers operate their own vehicles and park on each floor themselves. It is commonly seen at shopping malls and hospitals. Its main features are smooth entry and exit and easier accommodation of larger vehicles.
Mechanical parking structure
A mechanical parking structure is a type that uses machinery to move vehicles up, down, left, and right. It can accommodate many vehicles even on a small site, but entry and exit take more time and regular maintenance costs are required.
Which type of parking is recommended for apartment buildings?
The most suitable parking type should be selected based on the size and location of the apartment building.
| Condition | Recommended type | Reason |
|---|---|---|
| A site with ample space | Surface parking lot | Low initial and management costs. Easy vehicle access. |
| A site with limited space | Mechanical parking structure | Can secure many spaces within a small footprint. |
| Medium- to large-scale apartment building | Self-parking structure | Smooth vehicle movement and high convenience. |
| Luxury apartment building | Tower parking | High security and protection from wind and rain. |
What are the types and features of parking lot ground surfaces?
Parking lot characteristics also vary depending on the ground surface material.
- Asphalt pavement: Installation costs are relatively low and construction time is short, but surface temperatures tend to rise in summer.
- Concrete pavement: It offers high durability and a clean appearance, but installation costs are higher than asphalt.
- Gravel surface: This is the lowest-cost option and also offers a security benefit because footsteps make noise, but weed control is necessary.
- Interlocking pavers: They offer strong design appeal and a premium appearance, but installation costs tend to be higher.
What types of parking contracts and payment methods are there?
There are mainly two contract patterns for apartment parking.
Lease contract model
This is a structure in which a separate lease agreement for the parking space is signed in addition to the apartment lease. Parking fees are paid monthly separately from rent. It can also be leased to non-residents.
Management association model
In condominiums, it is common for the management association to oversee parking. Usage rights are often determined by lottery, and fees are collected as part of the management charges.
Payment methods
Common payment methods are as follows.
- Bank account transfer (combined with rent withdrawal)
- Bank transfer
- Credit card (if supported)
How can parking be used as a vacancy reduction measure?
Parking can be a strong advantage when attracting tenants. Consider using it in the following ways.
- Promote the property as having parking: On portal site search filters, “parking available” is one of the top filter items.
- Review parking fees: Set appropriate pricing by comparing with nearby market rates.
- Secure two spaces per unit: In car-dependent regional areas, two parking spaces per unit are often needed.
- Lease to outside users: If there are vacant spaces, consider leasing them externally as well in order to maximize revenue.
- Install a car-sharing station: Another increasingly common approach is to allocate part of the parking area to car-sharing operators.
Frequently Asked Questions (FAQ)
Is there a legal obligation to provide parking for apartment buildings?
There is no legal obligation under national law, but some municipalities may require a certain number of parking spaces under local ordinances. This should be confirmed at the building planning stage.
How much does maintenance for mechanical parking cost?
Annual maintenance costs are generally around JPY 50,000 to 100,000 per pallet as a rough guideline. Additional major repair costs may arise during large-scale renovations.
Can parking fees be treated as an expense?
Parking management costs in rental property operations can be recorded as an expense in a tax return. Income from parking fees is also included in real estate income.
Are EV charging facilities necessary?
As electric vehicles become more widespread, the presence or absence of charging facilities is increasingly becoming a factor in property selection. With a long-term view, there is sufficient value in considering the introduction of charging facilities.
