Knowing how to estimate the sale price or the rent of your car park is very important, but for this reason a few parameters are important. Indeed, each car park has its own specificities, which complicates the estimation and makes the study difficult. This step is essential to have a good positioning on the market in order to find the right tenant or buyer.
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It is necessary to define the specificities and the advantages of your location :
You must understand that the price depends on the market, more precisely on local supply and demand. This differs according to the particularities or characteristics of the site to be rented or sold.
- Most important factor that determines the price of a parking space or storage space is its location. The latter determines the rental value of the property. Price will be different depending on the geographical location : in the same city, the price may vary from one district to another. Hyper city centre remains the most popular. The proximity to a station or pedestrian shopping streets will further increase the value.
- Second factor that people looking for a parking space to park or invest in is precisely the location itself. The first thing that is obvious is accessibility, this criterion includes the size of the square and the aisles. Immediately after that come security issues such as lighting quality, a video surveillance system on site, etc….
- In general, an outdoor car park is always cheaper to rent and sell than other types of parking. The same applies to underground squares. Be careful, below level -1 prices drop, unless your seat is right next to the elevator.
How to estimate the rental value of your space ?
Depending on the characteristics defined above, you can use ads located in the same geographical area to get an estimate of the prices offered. I invite you to use our table to conduct a market study to define your rates. Be careful, an advertisement with a high price does not mean that you can rent at the same price. The advertiser may not have thought about the price posted and will dive in a few days. Community members explain how to write a perfect ad to rent or sell, follow this link !
Your objective is to rent quickly to obtain income ? The best solution is to calculate the real cost of your location by including : charges and taxes (property, income taxes, etc….). This calculation will allow you to know the amount of the minimum rent below which you lose money. The lower the rent, the more likely you are to rent quickly. If you have several locations in the same place, this technique allows you to quickly reach a high occupancy rate and increase prices at each tenant departure.
How to estimate the real estate value of your parking to sell it ?
The best solution is to find an investor by setting a price that is well placed in the real estate market in your neighbourhood. The longer a site lingers for sale on the internet, the less serious contact you have. Serious investors who can quickly make up their minds and buy your car park are not running around… It’s up to you to attract them with your ad and an attractive price !
Consider the cost of the charges (fees, property taxes, etc.). Calculate the profitability of your parking space ! Do the reverse work of an investor, calculate the return on investment to position your selling price. You can use our free table to simulate profitability.
In most cases, real estate agencies position the selling prices between 4% and 6% gross excluding notary fees depending on the rental income. This unfortunately gives a net 2 to 3%. Let us not even talk about the net net after tax on rental income. In short, at this rate, buyers will prefer to leave the money in the bank ! If you want to sell quickly and attract investors you have to be close to 8 to 10% gross excluding notary fees to get the touch. Remember that the gross and net profitability ratio is very important. The lower the costs of your site, the easier it will be to sell !