Who Owns the Unclaimed Money?

Just like a rental tenant, when a car park customer signs up for a monthly spot, they are usually asked to pay a security deposit. This is almost always in cash.

This is because the last month of parking fees tend to be very difficult to collect. Often, operators waste time chasing debts for unpaid accounts. Collecting this ‘bond’ upfront solves the problem.

However, it gets tricky when the customer fails to claim back their security deposit.

It is actually amazing how many customers walk (or drive) away from their parking spots and forget to send the email asking for their deposit back.

Unclaimed security deposits mean extra money in the bank… but who is entitled to keep that money; the Owner or the Operator?

Fix this problem before it happens.

• First, ensure your parking leases have a deadline for customers to claim back their security deposit. Have a system in place so customers are reminded to make their claim before the deadline. If you’re an Owner, make sure this is enforced.

• Then make sure your Owner/Operator agreement covers who owns unclaimed security deposits. It will prevent frustrating legal battles.

Want more advice about easy wins for your Car Park asset? Contact Parking Asset Advisory today.