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Anyone rent units free of charge to non-profits?

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  • Anyone rent units free of charge to non-profits?

    I'm asking because I just had someone ask me if we do at our facility. She is part of a non-profit that's been renting with us for 6 years. Apparently the other day the tenant who reps the non-profit came down with some other people. I guess these people are new to their organization. One of them asked if they rented the unit free of charge. She told them no, and they told her that's not right. The whole time they've been here, they've paid for a year's rent in advance. This month their payment was late and I had to contact them. I just received it today, waived the $10 late fee, and called and let them know. That's when the rep asked me if rent free of charge to non-profits. I have another tenant who is a non-profit, and they've been with us for 4 years. They pay every month and if they're late, I waive the late fee.

    Is it wrong to charge rent to a non-profit? Why ask about free rent now when you've been here for 6 years? I don't know why I'm a little annoyed by this.

  • #2
    Do you know that the management company I used to work for did, for years. Then in the last couple of years they stopped it. The facility I worked for did not. We did offer a discount, but that's it.
    "Opportunity is missed by most people because it is dressed in overalls and looks like work." --Thomas Edison

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    • #3
      This is going to sound harsh, but does the electric company provide them with free electric? Does the landlord not charge them for the building the business is run from? It is silly to assume that a business having no direct link to them would just provide them with free space. To me they are just like any other business or customer, they get charged. Late fees and all!!!

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      • #4
        Originally posted by Tercelet1 View Post
        This is going to sound harsh, but does the electric company provide them with free electric? Does the landlord not charge them for the building the business is run from? It is silly to assume that a business having no direct link to them would just provide them with free space. To me they are just like any other business or customer, they get charged. Late fees and all!!!
        Same here. We have been asked and politely turn them down. While I do appreciate some organizations, others may be non-profit but it doesn't mean someone isn't making $$$. This is my business to provide for my family. Other people work to provide for their family or own their own businesses, we are no different. If we were the "Walmart" of storage, I'd probably offer discounts, but this is a mom & pop shop, our only business, our only income.

        That being said, we aren't total creeps lol. Friends and family do get significant discounts but we still make them sign a full lease agreement and charge them late fees....(ok we don't charge them late fees, just seeing whos paying attention)

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        • #5
          No rent free here for "not for profit". The only free unit I have is for Toys for Tots ran by the local Marines. Got no problem doing that. Do you think "not for profit" companies/organizations ever pull a slick one. DUH! Bella, don't feel bad or worry about it at all. They pay rent and late fees just like anyone else does.
          "Never let the inmates run the asylum!"

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          • #6
            Originally posted by Tercelet1 View Post
            This is going to sound harsh, but does the electric company provide them with free electric? Does the landlord not charge them for the building the business is run from? It is silly to assume that a business having no direct link to them would just provide them with free space. To me they are just like any other business or customer, they get charged. Late fees and all!!!
            That's exactly what I was thinking! I bet they don't get their utilities and what not free of charge. I have respect and appreciation for non-profits. Especially ones for children and animal rights. But some people just freebies all day everyday in my opinion.

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            • #7
              The majority of their expenses are a tax write off if they are legit, anyways.
              "Never let the inmates run the asylum!"

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              • #8
                I have a non profit guy who runs a local organization to help homeless people, he counsels them on the addictions, help them find work, find housing, everything that they need to get themselves back on the right path
                He pays every month, auto pay, no discount

                However, once a year he holds in a local park a give away clothing drive
                At that time of year for about 2 or 3 months, he will take a 2nd unit, a 10x10 for the clothing drop offs.
                His volunteers come and pick up the clothes and launder them
                Then on Friday night about 25-30 volunteers show up on the property and they sort out all those donated, cleaned clothes and take them to the park where they will be distributed to those in need

                This 2nd unit, we do offer half off
                Mostly because he asked!
                He has been a good tenant for about 4 years now.
                We only discount this 2nd unit that he will take for 2 or 3 months TOPS!
                Don't put off until tomorrow, what you can do today.

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                • #9
                  We have a few different units that we donate to non-profits.

                  We have a couple larger units donated to the Toy's for Tots year round. Our name and logo are now on the local event shirts and flyers.

                  One hallway unit for the local Rod and Gun club for their supplies for kid events. They have made us members of the club, however because they do not have a gun range or trap range anymore, we don't use it.
                  --
                  Ron

                  http://advancedministorage.com
                  http://zolezzistorage.com
                  http://laws.stocktonstorage.net

                  email ron at advancedministorage.com

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                  • #10
                    I once gave a non-profit a free unit during rent up period, with an agreement that if I have a paying client that could be renting it that we will need to re-evaluate. It was a group that collected wheelchairs and other used but functioning hospital equipment to ship overseas.

                    I currently have a non-profit softball organization in a small unit and I gave them regular rate when they moved in but have not increased their rate like I do others.

                    At this point being nearly full, i would be more likely to offer a non-profit a cash donation, two months half price, or a reduced long term rate. I'm all for giving back to the community, and there is also some value to the facility in goodwill and word of mouth. Also remember where your break even is.

                    If you are giving them a unit at a a 25% discount and your facility breaks even at 60% occupied, you are still making a little money on the unit. That is sustainable. But a free unit means that you are paying a mortgage, taxes and expenses on non-rentable space. I would try to avoid that long term. I'd rather split that "donation" up between multiple organizations and get better publicity - for example I donated $100 to the local PTA and the put my business name with others on the back of a t-shirt. That was a great value in my opinion.

                    And in full disclosure, I am a really frugal cheapskate (just ask my wife).

                    Steve

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                    • #11
                      Our #1 core value is Doing good and giving back. I have non profits that we give units to. Some are at a discount. We do a lot of work with the Rescue Mission which is a local shelter.
                      We get an advertisement in anything they do. They also spread the word and I get some referrals from them.

                      We also have a non profit of our own called "Need a break Services" and we do a lot of work for people in the community.

                      Giving back and helping is good for the soul.
                      Janice - Maxi-Space Storage and Business Solutions

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                      • #12
                        Originally posted by jlemke View Post
                        Our #1 core value is Doing good and giving back. I have non profits that we give units to. Some are at a discount. We do a lot of work with the Rescue Mission which is a local shelter.
                        We get an advertisement in anything they do. They also spread the word and I get some referrals from them.

                        We also have a non profit of our own called "Need a break Services" and we do a lot of work for people in the community.

                        Giving back and helping is good for the soul.
                        That is why we do it. This is my neighborhood, I do feel good about helping those who help others in my neighborhood.
                        --
                        Ron

                        http://advancedministorage.com
                        http://zolezzistorage.com
                        http://laws.stocktonstorage.net

                        email ron at advancedministorage.com

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                        • #13
                          My mom works for a local non profit. While they do struggle financially they do not get breaks for the rent of their facilities. Ironic I use to work for a company that serviced their fire & security alarms for their facilities and they have always been horrible slow payers. This was well before Mom worked there; they would pay eventually. But they never asked for a reduced rate or anything of the sort.
                          Canton, OH - Hall of Fame City

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                          • #14
                            We like to be a part of our community as much as we can. We allocate 5 storage units that can be rented for free to organizations of our choosing. Organizations like Heart & Stroke Foundation, Habitat For Humanity, Children's Hospital etc. Instead of paying money for their unit, we get benefited in other ways like logo sponsoring on their website with backlinks, mentions on their social media, branding at events, etc.
                            Brightest Boxes in Town!

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                            • #15
                              I;ve been told Morningstar Storage donates 5% of their units to NFP's. I don't give any complimentary units on principle. You will pay at least a dollar to show consideration is being given. You will also get a dollar rate increase each and every year.
                              Chasing Perfection to catch Excellence

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