Self Storage how are you folks doing with rent collections ?

Question

Just curious how those in the SS business are fairing with your tenants.. or is it just too early to tell ?

Joshua Watts · Answer

We have couple thousand units and we were up for the month of march. ? I don't see how but we were. I would like to see April. We have little less than 90 apartment doors and we had two people not pay but they are just always late.

Brad L. · Answer

Small facility of 45 units in a low-ish income area, received all April rent.

Joshua Watts · Answer

One more thing that I found odd was one of my banks called me and said no payment no interest for the month of April then interest only if I need it. I was happy about that because the payment is around $40,000.00 then another bank offered no payments for that loan for three months which is about $20,000.00 per month. Right now thinking I might make it just fine out of this unless it goes on for a long long time. Then I might be in trouble.

Michael Wagner · Answer

Too early to tell IMO but if you insist on preliminary data I am happy to share...At our largest facility, we collected $5900 on March 1st and 2nd and $6073 on April 1 and the first half of April 2....so I'd say no change based on that very small sample size. That represents a bit over half of what the facility currently grosses ($13K) per month. Will be interesting to see what this looks like in 5-10 days!

Michael Wagner · Answer

Our April Collections are slightly ahead of pace relative to March. Lock outs happen today and no late fees until the 10th (which I will waive for anyone who asks as long as they pay by the end of the month)...

Jay Hinrichs · Answer

@Joshua Watts thanks for the feedback.. I did make a post a few weeks ago when it appeared there was a lot of panic by landlords.. In essence i said lets just see what happens.. and not project..

Hope is not a plan.. but i sure hope folks will pay their rents unless just absolutely unable.

When i owned my storage facility my banker was not all that keen on them during a recession.. and i bought mine from someone who had ran it into the ground but it was not easy in the 08 09 time frame..

In Portland though with all the building of apartments with no parking or garages and homes with no parking or garages I think well placed ones will do fine no matter.

this really dawned on me on my last project in Portland which was 3 homes one detached two attached on a 40X 80 lot .. No parking no garage.. and no real storage in the units other than normal closets.. but we sold them all in 45 days and got 500 to 600k for each of them. I was really worried I have to say.. but thats from my personal perspective guess were i just could not see how one could live without a garage :) But we do fine in Charleston with our new builds also.. I did spec there that sold for 2.2 million 2600 sq ft and it had NO garage although you could pull your car along the side of the home.. It was in the Toney historic district south of Broad so there was that aspect.

Jay Hinrichs · Answer

ya I was just wondering since SS is a totally discretionary obligation for most folks.. Dave Ramsey was on the radio this morning talking about if you have bills that you can put off so you can save for food and shelter do that.. including credit cards etc.

of course March was too early to tell May June will be the telling months I suspect.. when I had my facility it was pretty consistent I bought it in I think 06ish and we a lot of vacancy 50% in 08 to 2010 but then it filled back up.. we could debt service at 50%.. so I never really sweated it. then I put a condo plat on it and sold it for some nice gains. I think I might have been ahead of the curve on condo storage units I see them now popping up here in Vegas.

Self Storage how are you folks doing with rent collections ?

Self Storage how are you folks doing with rent collections ?

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