Adding Storage Lockers and Parking as Revenue Streams

 

Most apartment owners focus on rent, and for good reason: it's 90% or more of revenue. But some of the easiest NOI gains in a multi-family building come from what's already sitting there. An unused corner of the basement, a gravel pad behind the building, or a row of stalls tenants currently use for free can all become income.

Storage lockers and parking are the two most common sources of ancillary revenue for an apartment building. They're low-tech, tenants generally understand paying for them, and because multi-family value is tied to net operating income, every dollar of new recurring revenue can add many dollars of value.

This guide covers how Edmonton owners set up paid storage and parking, how to price it, the value math, and the rules you need to respect. For broader context on owning rental buildings, see our commercial multi-family real estate guide.

 

Why Ancillary Revenue Matters for Apartment Building Value

Apartment buildings are valued mainly on NOI divided by a market cap rate. That means small recurring income streams have an outsized effect on value.

Revenue source	Monthly fee	Units	Annual income	Value at 5.5% cap
Parking stalls	$50	12	$7,200	About $130,900
Storage lockers	$35	16	$6,720	About $122,200
Combined	n/a	28	$13,920	About $253,100

 

These figures are illustrative. Your pricing should reflect your building's location, demand, and what tenants currently get.

Storage Lockers as an Ancillary Revenue Stream

Where to find space

•        Unused basement rooms or old boiler rooms (after confirming fire code and access rules)

•        Under-stair areas in larger buildings

•        Underground parkades with dead space

•        Exterior sheds or containers on larger lots, subject to zoning

How to set it up

•        Use secure wire-mesh or steel lockers sized for typical items: bikes, seasonal tires, holiday decor

•        Number each locker and keep a log

•        Use a short written storage agreement covering fees, access, prohibited items, and termination

•        Check your insurance and fire code requirements before converting space

Pricing

Look at what local self-storage facilities charge for small units, then price your lockers well below that for convenience. Tenants value not driving across town to store winter tires.

 

Paid Parking as an Ancillary Revenue Stream

What Edmonton's bylaw allows

Edmonton removed minimum on-site parking requirements city-wide through Open Option Parking, which took effect July 2, 2020. The City notes owners can share or lease parking to nearby properties. That flexibility matters for buildings near Whyte Avenue, Downtown, Oliver, or the University of Alberta, where non-tenant demand for parking can be strong.

Pricing ideas

•        Charge more for covered or heated stalls, and for stalls with plug-ins

•        Offer a lower rate for small cars or motorcycles

•        Consider monthly rentals to nearby businesses or neighbours if tenant demand is low

•        Explore EV charging as a premium stall option

Managing it

•        Number and sign every stall

•        Use written parking agreements with vehicle and plate details

•        Set a clear towing and enforcement policy and post it as required

•        Review demand annually and adjust pricing

Respecting Existing Tenancy Terms

This is where owners get into trouble. If a tenant's residential tenancy agreement already includes a parking stall or storage locker, you generally can't start charging for it in the middle of a tenancy. Under Alberta's Residential Tenancies Act, rent increases are limited to once every 365 days with proper notice and not during a fixed term, and changing what's included in the tenancy can raise the same issues.

Safer approaches:

•        Introduce paid parking and storage for new tenants at turnover

•        Offer new or upgraded options to existing tenants as an opt-in add-on

•        Use separate written agreements for add-ons

•        Get legal advice if you're unsure how a change interacts with an existing lease

Our guide to the Alberta Residential Tenancies Act for landlords covers the core rules.

Other Ancillary Revenue Ideas for an Apartment Building

Idea	Notes
Coin or app-based laundry	Common and reliable in walk-ups
Bike storage rooms	Popular near campuses and transit
EV charging stalls	Growing demand, upfront cost
Furnished units	Higher rent, more management
Signage or rooftop leases	Depends on location and zoning

 

Underwriting Ancillary Revenue When You Buy

When you analyze an apartment building, check whether the seller's ancillary revenue is actually collected, documented, and sustainable. Look at the rent roll, parking agreements, and bank deposits. A pro forma showing "potential" parking income isn't the same as actual collections. Our guide on how to analyze a multi-family property shows how to separate real income from wishful thinking.

On the flip side, buildings with untapped parking or storage can be value-add opportunities. Our article on finding value-add multi-family properties explains how investors spot these upgrades.

Frequently Asked Questions

 

Turn Unused Space Into Recurring Income

Look at your building with fresh eyes: the basement corner, the back lot, the stalls nobody pays for. Price fairly, document everything, respect existing tenancies, and track the results. Small streams of ancillary revenue add up to real value.