Why landlords should invest in parking Parking can be a big issue, particularly in new developments and in London - and buy-to-let investors need to consider it when choosing which property to buy. Even at large new-build schemes, developers will often now only offer parking spaces with larger two or three-bed units. If you don't buy a parking space for your tenant and he or she wants to park outside the development, most councils won't provide a parking permit," says Anita Mehra, managing director of Benham & Reeves, referring to Section 106 agreements that allow developers to build flats but do not give residents the right to a parking permit within the borough. One of Benham & Reeves" tenant clients was all set to sign for a flat in Kew recently, then found out from the council that the only places he could legally park were in pay-and-display bays. Buyers must be clear about parking before they buy for investment. Parking spaces differ in price dependent on location. A space could cost £15,000 in [Tube] Zone 3 or 4, but in central London £50,000 and upwards is not uncommon," says Ms Mehra. Arlo Risbey, associate partner for lettings for Howard Cundey estate agents in East Sussex, says: "When I worked in south London, the lack of a parking space was reflected in the rental. Some landlords even advertised the parking space separately for a monthly premium. Mark Von Grundherr, of Benham & Reeves, says "by and large" landlords can't charge a premium for having a parking space - but the lack of one will limit the number of potential tenants. I always advise landlords to purchase a parking space. It will add to the value of the property when they come to sell. In central London, where rental properties are more likely to be flats and tenants young professionals, taking the Tube may be second nature - but renters also often have company cars. A recent Transport for London report into car usage in new residential developments in the capital shows a quarter of residents use their cars daily in peak periods while a third living in new developments in outer London use their cars every weekday. Nearly half of inner London (and two thirds of outer London) residents in new developments said the availability of parking - off-street or on-street - was important when deciding to live in their current home. In the suburbs, where the tenant demographic is more likely to include families and older renters in houses, a parking space will be almost essential. No one wants to spend 15 minutes searching for a spot after every school run or supermarket trip. In other cities, rentals with parking can be similarly thin on the ground. "In Birmingham, tenants in new developments prefer parking with their property, but nine out of 10 landlords don't offer it, as a space will cost them about £20,000 on top of the sale price," says Major Mahil, owner of Belvoir Birmingham Central lettings agency. As long as the tenant can provide their tenancy agreement, they can get a permit for £240 a year, but there's a six-month waiting list. Ben Davies, owner of Belvoir Swansea, reports high demand for two-bedroom flats in one new city centre development as it offers two allocated parking spaces per property. That's extremely appealing to professional couples or sharers, who often have more than one car. Where parking is scarce, one option is car clubs for tenants. Hunters estate agency has teamed up with the car-sharing City Car Club so member tenants can book at a discount and access a vehicle from the nearest pick-up point. The scheme has proved extremely popular in York, Leeds and Manchester, and we're looking to roll it out in other cities. The lack of parking, particularly for one-bed city centre flats, can often see a rental deal fall through. Flats with onsite parking can command £100 or £200 more a month," says Carrie Alliston, of Hunters. As Adam Phillips, of London-based Aston Chase estate agents, concludes: "Parking adds so much to the asking price to buy, but represents great value." More from Telegraph Property Club: Will your property deliver in retirement? >> Competing with new buy-to-let investors >> How to make more money - the right way >> 2014: good news for the buy-to-let property market? >> Property Club membership: Sign up to receive exclusive tips and advice direct to your inbox >>