how do parking lot operators like Impark make their money?

259 views

My understanding is that companies like Impark run parking on land owner but others (schools, government buildings, etc.) Do they partner on this? Does the landowner get a profit share? Who makes what out of this deal??

In: Other

They essentially “rent” the land (the parking lot) from the actual owner. They then can make money off it, and they just pay the rent back to the school/government.

So if the government builds a parking lot next to their building, they can rent the land to a parking company for, say, $5000 a month. If the land has 100 spaces and they charge $100 a month for a monthly parking pass, the parking company makes $10,000 a month and pays $5000 of that back to the government as rent.

There are two principal ways which they can work:

1. Profit sharing. The operator gets a certain “cut” of the profits.
2. Fixed rate. The owner pays the operator a daily, monthly or yearly fee.

Of course it’s also possible to work on both, e.g., $10,000 per month plus 10% of monthly profits.

My mom used to rent out the side parking lot at her business on nights/weekends when a microbrewery that opened across the street. She was making $2k/$3k a month just off parking fees.