The manager named in the agreement has detailed responsibilities and is compensated by obtaining an administration fee consisting of a percentage of the basic monthly rent, additional rents, rental costs, operating costs, real estate transactions and other revenues from the use or occupancy of the premises actually collected. In addition, the manager receives leasing commissions, as stipulated in the agreement. Always remember that the primary purpose of a park manager under a lease is to maximize profits beyond the monthly amount paid to the owner of the property. Ross Frangos is President and Founder of AuditPark Services Inc., a Toronto ON-based park consulting firm. He specializes in requests for proposals, parking documents and assistance to clients in the purchase of parking space management services. This is a licensing agreement in which a landowner granted the property to a parking manager who manages the operation of the car park. The licensee pays the landlord (conceding) a fixed rent and percentage. Advice: always negotiate revenue targets with incentives for the park operator as part of a management agreement. If they can directly benefit from the success of the facility, a park manager will place more emphasis on maximizing revenue for the owner. Depending on the park, some owners spend a lot of time and resources to ensure that their property`s image and parking experience exceed the expectations of tenants and Daily Parkers. Finally, a car park is often the first and last impression of a visitor to a property.
As part of an administrative agreement, the landowner may order a park manager to use additional resources and areas of activity that require special attention. For example, while the vast majority of parking spaces are fully automated, some landowners still want additional customer service personnel on site to handle parker complaints, questions or payment assistance. In this case, the car park adjoins an office building of the owner and is mainly in favor of offices. The lessor also reimburses the contractor`s costs in the garage management pocket. Tip: Always negotiate a turnover with a park manager in a lease agreement. This ensures that the owner of the property takes advantage of the success of the park operator to increase the annual turnover of the facility. Under a lease agreement, the park operator is responsible for all day-to-day management, operations and park costs. The landowner does not need to devote as much resources to monitoring the parking process as to a management agreement.
Instead, the landowner can expect a regular monthly rental cheque from the park operator. Last piece of advice: Park operators often require vague and ambiguous things such as “administrative fees” or “processing fees.” Always check the costs charged by the park operator and always ask for several independent offers as a reference, especially when it comes to being or cleaning the facility.