The incitive fee should not exceed the administrative costs, regardless of how it is calculated. This is a “bonus” for a performance above expectations, based on revenue indices higher than expected. Under a lease agreement, the operator of the parking space “leases” most of the park to the owner and makes a guaranteed monthly payment in return. Unfortunately, many property owners are not advised by an independent park specialist or parking advisor to assess the turnover that can be generated more per month. Instead, many property owners accept the initial offer from a park operator, which at first glance appears to be a big deal, but compared to what the investment will generate in 1-3 years, it is usually significantly lower than the market value. I remember checking a client`s management agreement in which the incumbent operator of the park brought in more than $4,000 per month to the owner of the real estate over the past 5 years for investment insurance of more than $4,000 per month. The client had no idea that the insurance fee for an establishment of this size should be around 400 $US per month. Under a lease agreement, the park operator is fully responsible for all day-to-day management, operation and costs related to the development of the park. It is not necessary for the property owner to devote almost as many resources to monitoring the operation of the park as it does under a management agreement. Instead, the real estate owner of the parking space operator can rely on constant monthly rent control. A number of factors play a key role in determining the “correct” business relationship with a parking provider, such as. B daily transentery report, condition of parking equipment, tenant parking fees and customer service. However, revenue forecasts versus stable revenue returns remain the two main deciding factors for property owners in choosing between a management agreement or renting parking companies.
Tip: Pay attention to the services that the park operator promises in a rental agreement and always make sure that service times for things such as daily cleaning or customer service are clearly defined in advance in each parking rental. Empty point, do not expect the same level of customer service or cleanliness in a rented park compared to a managed land. Since all operating costs of a lease are the responsibility of the fleet operator, labour-intensive services such as daily cleaning or customer service are usually the first points reduced by the fleet operator, as they had a direct impact on its final result. Administrative costs are paid for the proper management of the parking facilities, while clearly respecting the operating clauses of the agreement. The incitive fee allows the owner and operator to generate additional revenue. The truth of the matter is best expressed by the old saying: “You have what you pay.” If tenders or tenders are evaluated mainly on the basis of the operator proposing the reduction in administrative costs, it is more likely that the owner will receive a service of inferior quality. . . .