CREJ - Property Management Quarterly - May 2015
Finding the perfect vendor for any service can be a time-consuming and challenging endeavor, and selecting a parking operator is no exception. Without firsthand experience in the parking industry, one may not know what to look for and how to evaluate your options. Every company will say why they are the best and they all might have compelling arguments, but there are important criteria to analyze when making this important decision. Following are a few tips on what to look for when selecting your next parking operator. 1. Experience. It’s important to know if the potential company has experience with a project similar in size and scope. For this, quantity does not always equate to quality. Just like any other industry, there are parking companies that carefully select which properties to manage and other companies that have a set corporate system and growth strategy that is to conquer everything in all markets. As long as your potential vendor can prove it is qualified to serve your property, it should not matter how many facilities it currently manages. 2. Responsiveness. Parking is a 24/7 business, especially in busy urban environments such as Denver. It’s best to ensure that your potential vendor is available to provide customer service at any hour (depending on need) and has a quick response time in case of emergencies. A local team is better than an outsourced call center because the local team can provide a higher level of service to the customers with a greater understanding of the property, parking operation and city. General emails and questions should be responded to within a reasonable amount of time during the business day and after hours. 3. Transparency. Establishing a trusting relationship with your potential parking vendor is critical. This typically happens over time through networking by attending organization (such as Building Owners and Managers Association and International Facilities Management Association) meetings and activities, and working together at charitable events and committees. If you have a chance to work with a vendor in a nonbusiness setting, you can get to know them on a different level outside of the business world. A parking contract is not the same as a simple one-and-done vendor contract; the parking operator is “moving in,” per se, and often handling thousands, even millions, of dollars in revenue. Trust is critical to a property manager’s and owner’s confidence. One must feel completely comfortable with the parking operator and know that he has proper controls in place to ensure revenue will be maximized. You want to make sure that their accounting and cash handling processes are transparent and that all management reports are clear and contain backup documentation when necessary. Reports that are not clear or do not maintain user-friendly readability should be adaptable and adjusted to best meet your needs. How can you do this? Ask questions, ask for the documentation, hire a third-party auditor or have your potential vendor sit down for a polygraph test. OK, that last example is a stretch, but you get the idea. If a company is unwilling to discuss its reporting or process, it may have something to hide. 4. Flexibility. It’s important for your potential vendor to be flexible with operations and make quick decisions. Whether it’s to fill your facility for an unexpected special event to maximize revenue or solve a parking problem for a major tenant, you want your vendor to have the skillset and authority necessary to remain flexible and proactive. This means cutting the red tape and finding a vendor who empowers his local operations team. 5. Reputation. While most requests for proposals require a list of references, often these references go uncalled. First-person references in the same city usually will tell it to you straight. It is important to ask questions related to the other categories – response times, attention to detail, how often you see upper-level management, etc. These can be indicators as to whether a company has time to give you the level of attention necessary to ensure your parking is a blessing. If not, your parking will continue to frustrate you. 6. Attention to detail. Does the vendor pick up on your “red flags?” Is the vendor sensitive to your needs and communication patterns? Does he make requested changes, and are they made in a timely manner? Does the vendor follow up in a way that works for you so you know things are getting done when you need them done? A good vendor will follow up with you as much as needed. An operator should at minimum suggest regular meetings (weekly, monthly, quarterly, as needed) so that he can maintain regular communication and ensure your needs and the needs of your garage and tenants are met. If you keep these criteria in mind while selecting your parking vendor, then you will be on the right track. Another important aspect is to ask senior-level managers in your organization for their advice – there could be elements that they look for that are not included in the list above. Taking the time to carefully vet and select a parking vendor will save you a lot of headaches in the end.