Spotlight on: The Coveted Parking Space

It’s important to guard against any hint of favoritism. At some co-ops, requests for parking spaces must be in writing, either on paper or in e-mail, and post the list every month in a common area. At other co-ops, shareholders sign up before they move in.

To keep spaces from sitting empty while retirees spend half the year in Florida, some co-ops let snowbirds sublet their parking slots to other shareholders (but only with board approval). Generally, the person who has primary claim to the space must be in residence for a minimum period each year.

Finding an Operator

 Another system for handling spaces involves turning over the garage to a commercial operator, a common situation in Manhattan. The operator leases the area from the building for an extended period, such as eight to ten years, sometimes with the option to renew.

While the garage is available to the general public, the agreement typically reserves a certain number of spaces for shareholders to rent, at a capped price; an escalation clause may permit increases for all customers over the course of the lease.

All fees and conditions should be spelled out in writing, starting with restrictions on accumulating personal materials in the garage. A cross-section of real estate attorneys recommends short-term licensing agreements over leases, because a license is easier to terminate — so boards should discuss this point with the building's attorney.

And don't forget: the dearth of parking makes it an excellent all-purpose disciplinary tool. Boards can restrict parking privileges to shareholders in good standing. That means that if you’re in arrears, you lose your spot.

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