The Parking Space Constitutes a Fraction of Co-Ownership
When it is not a common portion, a parking space in a condo constitutes a fraction, in the same way as an apartment or cellar. It can therefore be sold with or without the apartment. And since, in Quebec, a condo parking spot located in a big city sells for around $40,000, it’s understandable that potential buyers consider purchasing a condo without parking.
However, you should know that the declaration of co-ownership may impose condo parking rules and regulations that restrict the usage of this lot. For example, in some condominiums, it’s impossible to lease a condo parking spot to someone who doesn’t live in the building, or even to another co-owner or tenant of the condo. In case of doubt, don’t hesitate to consult the firm responsible for the administrative management of the condo to verify this point.
Buying a Condo Without a Parking Space
Although it’s technically possible to buy an apartment in a condominium without a parking space in the condo, even if you purchase your first condo this isn’t recommended. Indeed, for several reasons, there are disadvantages to purchasing an apartment without a parking space:
Lack of Convenience
If you don’t have a parking space in the condo and you own a vehicle, you will have to find a space to rent in the neighbourhood—a situation that will waste your time and that you might regret when you come home in the snow loaded down with packages after a shopping trip. You shouldn’t forget that, as their name suggests, visitor spots are reserved for them. Furthermore, many condominiums have taken out a towing contract, since condo parking lots are often occupied by motorists who are not authorized to park there.
Incurs Additional Expenses
If you have to rent a parking spot in the condo or the neighbourhood, you will have to pay rent each month—a charge that might be very expensive in the long run.
Disadvantage at Sale Time
The absence of a parking space with a condo for sale is often a turn-off for potential buyers. Some consider this to be a deal-breaker and don’t even want to visit the property. Others take advantage of it to negotiate a lower price for the condo.
Renting Out a Parking Space is Profitable
Apart from the downsides with respect to resale that must be taken into account, people who don’t own a vehicle have an interest in buying an apartment with a parking space in the condo. Furthermore, this is a rental investment offering excellent profitability, without work, posing little risk of default, and generating reduced condo fees in return. If you want to rent out your parking space in your condo, contact your firm: whether it handles the complete management of the condominium or only a portion, it certainly receives many requests from co-owners looking for a parking spot to rent.