Guys, thanks for all the great advice. I agree 100% that I've let this go on long enough. I have a property management company, and I've already given them a stern talking to. I am only onsite once every few months, so there's definitely a lesson about taking a more active management role. If I had been, I never would have let this go on for so long.
If my two options are to tow the car or collect some revenue from the spot, I'd lean towards collecting revenue. The spot is worth $350-400, so an extra $2000-2500/year is going to help a lot with my cashflow numbers. I'm pissed that this guy has been generating the extra revenue for so long. There's also no where else to park in the area. The car owner would be in a bad place if he/she has to go find other parking. I wonder if there's any case to sue the property owner for past revenue. He has essentially admitted to renting the spot (although I don't know for how much). How can you rent property that's not yours? That sounds highly illegal. I'm not trying to be greedy, but it's really messed up. I'd consider saying something like: "we can keep the car as-is, but I want the next 12 months of parking revenue and then 50% of all parking revenue past that point." Do you guys think that's too aggressive?
If the revenue angle doesn't work, then I'd paint a stripe as close to the property border as possible and start towing. I have the architectural site drawings, and they have good references for where the border is, but in theory, the neighbor could dispute any painted boundary...which would probably cause me to need a site survey.
