Vacant profits

The UK's love affair with the car has given rise to the lucrative industry of car parking. Helen Lartey explores what it takes to own, operate and manage a car park, both for businesses and as an alternative property use

Despite the current economic climate, people still need somewhere to park wherever they travel to. Using land for car parking in the current property stagnation can prove a very worthwhile use of vacant space. Yet there is more to car parking than setting up shop on a vacant area of concrete. Good management of a car park is key to good business.

Whether managed in-house or outsourced to a car park operator, the level of car park management varies from one car park to another. A surface car park at a supermarket for example requires a very basic level of management compared to a multi-storey car park situated in a town centre or at an airport.

Managing a car park is not an easy task, especially if the car park is open 24 hours a day, all year round. The situation is different day-to-day and an average day can quickly descend into dealing with an accident in the car park could affect takings. Equally, all matters concerning the car park will need maintaining and organising. Namely this includes such considerations as the attendants, parking payment system (ticket or cashless) and if applicable, the automatic number plate recognition system and CCTV. In addition, regular checks should be carried out to ensure that the car park is safe for all persons using the car park and all vehicles are parked correctly, all equipment is in good working order and that signs and surface markings are clear for all to read. Further tasks which can be added are issuing parking permits and enforcement, normally in the form of issuing tickets.

Most companies with a small car park choose to manage and run their car park internally, using a simplified parking strategy. In-house management can be very effective as the company retains control of the car park and expenditure. Depending on the size of the car park and parking strategy, it may not be necessary to have a parking team
or expensive computerised parking system. However, the latter can be very useful if the company is trying to implement a travel plan or encourage the staff to travel to work by other means such as car-sharing or car-pooling.

It can be daunting for a company to manage a car park and outsourcing is not always an option. For companies who would like assistance in getting started there are car park consultants who can assist in finding the best way to manage a company’s car park.

If a company has a larger car park, surface or multi-storey, it may be advantageous to outsource the car park management to an operator. For an agreed management fee, the car park operator can take responsible for everything concerning the car park on behalf of the company. The car park operator will often bring in their own team of car park attendants and if required, a manager or supervisor and will deal with all forms of payment for the parking charges.

However, some companies may not charge for parking and may simply require the services of a parking enforcement operator. Company sectors like NHS hospitals, may choose to outsource the car park management to include the design and construction of a new car park. This can be an exciting project to get involved in, liaising with local authorities, architects, designers, developers to see the car park from conception through to completion and thereafter, being used by the public.

Whichever operator is chosen to manage a car park, it is worth considering who can provide the best service that takes into account the ‘end’ customer – the general public.

One of the toughest considerations is how best to cater for users with different types of disabilities. Speaking to representatives of the Disabled Motorists Federation and Mobilise recently, I was surprised to learn the difficulties disabled motorists face when using the average car park, whether it’s a surface or multi-storey.

These difficulties can range from gaining access into a barrier-operated car park through to paying for parking (in car parks where disabled users are charged for parking). This target market’s needs may not be currently met by certain car parks. Changes must be made by car park owners and operators to comply with the Disability Discrimination Act.

A worthwhile investment?
If managed well from a financial point of view, a car park can be profitable. Often though profits can be re-invested into the car park to improve equipment and facilities and thus hopefully increasing revenue.

Where a car park is not profitable, various factors could be in play. Common faults are improper management and over-expenditure in terms of staff or facilities. It is unfortunate when this happens as the car park can fall into disrepair and poor service, resulting in a loss of custom and, therefore loss of revenue.

Charging higher rates for parking doesn’t necessarily guarantee higher revenue and profit, unless the car park is situated in an area where parking is in high demand. It is best to charge a fair and affordable rate for parking to attract all potential customers and increase the car park capacity.

Location is the key to a successful operation. Finding the right site and taking advantage of opportunities available around that area will bring rewards. Customers do expect the car park to be in a reasonable condition and standard as well as for the charges to be fair. Car parking shouldn’t necessarily be viewed as a ‘get rich quick’ scheme; this is a long term investment which requires time, effort and money to secure the whole operation to succeed. As mentioned, there are car park consultants who can help and advise with your car park operation.

Over a period of time, the demand on the car park and its users will increase – hopefully to full capacity. Having an effective contingency plan for this eventuality that every member of the car park team is aware of is an essential strategy for maintaining a good service in these situations. This is often get forgotten about until the situation occurs.

When it gets to the point of demand persistently out-stripping supply, it is time to move on to the next step, whether that be expanding the car park or improving the existing car park system to allow effective use of existing park bays.
There is always ‘a better way’ to manage a car park. It is important for companies to keep up to date with the latest parking and payment systems and parking information when managing their car park and to stay one step ahead of the competition. Attending seminars and exhibitions can be a good source of finding out further information as well as the latest products and services on offer.

For more information email: park-space.co.uk