Repave the 120-space lot, or run the asphalt to failure while the rezoning plays out

Cold-patching the same four holes twice means the base under them is wet. Patch and seal won't fix that. I'd get those four areas cut out and repaired full depth even if you skip the overlay everywhere else.

Run the two cases out. Full repave: $148k now, call it zero further pavement spend for seven years, and you keep your monthly base. Patch: $31k now, another $31k in year four, so $62k, plus whatever attrition the appearance causes. The gap is $86k over seven years. Losing 30 spaces for even one year costs $34k, so the patch case only wins if attrition stays near zero the whole time. What's wrong with that framing?

ledger's framing is close and it's missing two inputs.

The first is timing risk on the rezoning. Three to seven years is a wide band, and pavement spend is efficient if the horizon is seven and wasteful if it's three. A mill and overlay is not a life extension you can shorten, you pay for all of it up front. Patch and seal is a shorter-dated decision, which is worth something when the exit date is unknown. That option value is the honest argument for the cheap route.

The second is liability exposure, which doesn't appear in either bid. Deteriorated pavement and faded striping on a lot open to the public is where premises liability claims come from, and how a duty to maintain and a comparative fault rule apply to you varies by state, so what an unrepaired pothole exposes you to is a question for your insurance broker and an attorney licensed where the lot sits. Check whether your policy carries any condition-of-premises language too, some do.

On the pavement itself, solder is right about the mechanism. Alligator cracking across drive aisles usually means base failure, and cold patch over a saturated base fails within a season or two. Full-depth cut and repair of the worst areas plus crack seal on the rest is a real middle path that costs more than $31k and much less than $148k, and it addresses the water intrusion your construction instinct is worried about.

The assumption your answer hangs on is whether your monthly base is price sensitive or condition sensitive. If those two accounts would stay for a $10 rate cut, condition matters less than you think. If they'd leave at any price, the overlay is buying revenue rather than pavement.

The middle path is what I'd fund if this were my capital. Full spend on an asset you intend to demolish is hard to defend to anyone underwriting the position later, but so is letting a $137k revenue line decay.

Have you asked the two accounts what they'd actually want? Sometimes the complaint is one specific aisle they drive every day, and fixing 15% of the lot solves 90% of the noise.

beacon's suggestion is cheap and it also gives you information. girder, I'd add the sensitivity ledger skipped: what does $148k of pavement do to your basis if the rezoning fails? If it fails you're holding a parking lot for the long run and the overlay was correct. If it passes in year three the overlay was $148k of demolition prep. Price the probability, even roughly, and the answer usually falls out. My guess is you're somewhere near even, which is why you're posting.

Every unit I own has taught me that deferred maintenance gets paid, with interest, in tenant turnover. I'd do the full-depth repairs and the striping and skip the overlay. Fresh paint changes how a lot reads more than people expect.

girder, one thing to check with the city: some jurisdictions treat a full repave as a trigger for bringing the lot up to current code, meaning landscaping buffers, stormwater detention, ADA-compliant accessible spaces and routes. That can turn a $148k paving job into a much bigger number, and it varies by ordinance, so call planning before you sign the bid. It's also awkward mid-rezoning.

parcel's code trigger point is the one that would decide it for me. I got surprised by a much smaller version of that on a lot I own and the stormwater requirement alone was more than the paving.

$95 a month for 120 spaces on the edge of a core. Has that been tested lately? If you're under market, part of the paving cost pays for itself with a rate increase you could take anyway.

Different world from mine, but on my gravel lots the answer has always been fix the drainage and ignore the cosmetics. Water is what actually eats the surface.

As the person here who wants the low-effort version: patch and seal, and accept that the lot looks like a lot. If two accounts leave, is that really 30 spaces, or is it two people complaining while they renew?

What's a mill and overlay? I gather it's grinding off the top layer and putting a new one on, rather than digging out the whole thing?

juniper, that's it. The mill removes an inch or two of the old surface and the overlay is new asphalt on top. It doesn't touch the base, which is why solder and the official reply both keep pointing at the base. girder, I've held land for a long time and my rule is to spend only what protects the dirt and the income I'm actually collecting. The overlay protects neither if the base is wet.

I'd want the rezoning odds stated out loud before spending anything. What has the planning staff actually said, and has anything comparable nearby been approved in the last three years? If you can't answer that, the cheap option is the one that keeps your choices open.

My first rental is coming soon, and the thing I'm taking away is that maintenance decisions depend on how long you plan to own. I hadn't thought about it that way before.