Investing in a Parking Space?

    by

    Hi,
    We are buying an apartment in the South Slope and have the opportunity to buy a parking space (for $30k). We don’t own a car, but think it makes sense for resale value (2 bdrm) and we can cover some costs by renting it. Does anyone know what value a parking space adds to a sale price in this neighborhood?

    23 Replies

    1. Even if the bylaws don’t prohibit renting your space to a non-resident, the condo board will likely pass a rule prohibiting the rental to non-residents, and they have right of first refusal on rentals in any event. Our condo absolutely forbids renting spaces to non-residents. In fact, as I recall, one potential parking spot purchaser mentioned they might rent to a non-resident and the sponsor declined their offer to purchase. There are many and varied ways a condo board can prevent you renting to a non-resident, or preventing a non-resident renter from accessing the parking lot. One thing is absolutely certain, if you rent it to a non-resident, you will seriously piss off a sizeable chunk of your neighbors. Do you really want to live like that?

    2. As the user name indicates i live around 12th and 7th and park without much trouble at all. It helps that there’s Tues/Fri street cleaning (once a week, spaced out) and if that fails, you just go down to 6th and the street cleaning days are completely different. I’d say a good portion of neighbors have cars so it’s not too bad. That said, somebody will gladly pay $200/mo who doesn’t want their car dinged up, etc in the area.

      To the guy looking at night, just park it on 7th avenue, move it by 8:30 the next morning for the street cleaning.

    3. thanks for all the helpful suggestions, I think its clear we should buy it (but will check into the bylaws first). It’s not covered parking, but a spot in a lot behind the building, so I believe we will be able to rent it to non-residents (but I’ll check).

      As to the definition of South Slope, the apt is on 15th St between 5th and 6th, which I believe to be South Slope proper =).

    4. No lie, tybur. Got to the point where my father gave me $1,000 to keep in my bank account to pay the tickets online for him (using my bank card as a credit card if I recall correctly) so he could stop writing checks. It was ridiculous and unbelievable, but it happened. Between meters, having the tail end of his caddy hanging too far into the bus stop and alternate side, Papa Snappy donated literally hundreds and hundreds of dollars to NYC. He never left here without at least two tickets. Never. In the SS/Greenwood area, the meter maids are no joke. I’ve watched them stand by meters with just a couple minutes left on it, waiting to pounce and write the ticket the moment the time ran out. Plenty of people have complained – I’ve witnessed several fights with meter maids for doing the latter – but it continues. Papa Snappy won’t be getting any more tickets, but that’s only because he’s dead!

    5. It’s one thing to find parking frustrating as a resident… and it’s the 8th night in a row and your tired and fed up so you just give up…. but to VISIT and then get tickets??! That’s just ridiculous.

      I have driven to Park Slope — all parts and at all different times and parking overnight at various times — and at no point have I gotten a parking ticket.

      Seriously, what did they do with their car to get “a couple hundred dollars” worth of tickets?!!

      I find this very suspect.

    6. oh, and I should add that that is the same area in which they had a helluva time finding parking.

    7. tybur, my dad and friends got their tickets from 4-6th aves between 16th and 20th streets.

    8. I beg to differ with the statements that SS street parking is not difficult. When my father would drive here to visit, parking was ALWAYS a nightmare that ended in him having to donate a couple hundred dollars to the City’s coffers by way of numerous parking tickets. Friends who visit experience the same fate. Buy that space.

    9. What part of the “South Slope” — are we talking 10th Street and 8th Avenue…. or 47th and 4th Avenue (I think realtors are still calling that South Slope, right? Or is that south Brooklyn Heights?)

      There’s a big difference. If it’s south of 15th, street parking is not that tough.

    10. Minard loves to shoot her mouth off about things she doesn’t know anything about. Parking in all of Park Slope is a nightmare.

    11. The math is easy to figure out, as the purchase cost will be recoup upon selling. After taxes and CC you should be still ahead with your monthly rental.

      HOWEVER, you should check the BYLAWS regarding WHO you can rent it to and sell it to.

      Often condos/co-ops have rules that you cannot rent it out to non building occupants and cannot sell it to non-owners. For some this is a security reason (keys and cards must be made, etc).

    12. Minard obviously does not live in S Slope. Parking in the Slope in general is worse than the W. Village. BUY THAT SPACE!

    13. I don’t think parking on the street is a big deal in the south slope and if you don’t have a car you’re being ridiculous.
      Suzy Orman would tell you to forget it.

    14. A quick scan of craigslist will tell you that you can easily get well above $200 a month for a space in that area. Especially if it is indoor, 24hr access, with garage door.

    15. Do it. There will be people in the building who will have a car but not a space. You may not be able to rent it out until the building is full though. It is extremely likely that the condo will only allow you to rent it to other residents of the building. Once the building is full, parking spaces will be much sought after. You should consider whether you can get anything off the price. If you are an all cash buyer, you may be able to get a significant discount off that $30k. Developers will often discount (even all the way down to zero) the price of a parking space to keep the price of the residential unit high.

    16. What can you rent it out for?? Then do the math with the maintenance deducted and see what the yearly Rate of return is. If it’s over 4 or 5% it’s a pretty good investment as it stands without figuring in any appreciation or added value to resale. $200 a month on 30,000 cost is 8%!!!! You won’t find that anywhere else

    17. make sure that:

      – maintenance and taxes are not too high
      – you have full rights to rent it out as you please

      A big plus is if you can sell it separately from the apartment