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Getting close now!

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  • Getting close now!

    Our first building is coming this Friday, Pole lights and fencing are in the process, gate controller is taken care of. Here's what we plan on doing:

    Starting out - 2 buildings to "get our feet wet", there will be approx. 80 units to rent
    We have a 10 acre site that will be completely fenced in with pole lights and security cameras.
    Using Sitelink for processing, and PTI for gate controller
    We plan on having outdoor RV and Boat parking to bump the income up some to finance additional buildings
    Thinking of offering 1 month free if customers use Autopay?
    Plan on having a $20 administrative fee and giving customers the ABUS German locks
    Temporary office in one of the units, with my wife meeting customers at site, then during Phase 2, having a permanent office with regular hours

    I'll continue working a 40 hour week at a hardware store to have health insurance, but plan on leaving there when we complete Phase 2.

    Any thoughts or recommendations?

    Tim

  • #2
    Congrats!! It looks great to me, but I'm just a manager-I'm sure owners will chime in with their ideas.
    I was born to be wild, but only until about 9:00 pm.

    Comment


    • #3
      Also, don't be surprised if you get tons of phone calls about you selling it, despite the fact it's still a work in progress.
      I was born to be wild, but only until about 9:00 pm.

      Comment


      • #4
        We plan on keeping it as a family business. In 10 years, I'll be retirement age, then I hope my stepdaughter will take it over, or my son...

        Comment


        • #5
          That's great! Post photos of the project as it goes up!
          Amy Campbell
          Editor
          Inside Self-Storage
          amy.campbell@informa.com

          @AmyCampbell_ISS
          480.281.6091

          Comment


          • #6
            Underhill, I see you went with the ABUS locks. I guess they finally took care of you. I would go ahead and give the free month with Auto Pay but would have them pay for 1-2 months with that to get the free month. If you do the free month up front then you will invite tenants in that will do the free month and then drag their feet before leaving without paying for any PAY months. Maybe, rent 2 months and get 1 month free and IMO I would MAKE them sign for auto pay. It is pretty much the norm as the industry moves ahead. Also tends to weed out problem tenants ahead of time. Make sure you do not allow ANY outside rentals without proper paperwork for the vehicle/trailer and make sure the names are for who you are renting to and are current. Make sure the admin fee is understood as a fee for the lock but the tenant KEEPS the lock when they leave. Also, make sure you have the proper quality equipment for cutting those locks when needed.
            "Never let the inmates run the asylum!"

            Comment


            • #7
              Don't give anything away at first!
              Set a time frame that you will do "normal" business and see what the market brings you

              Giving away an entire month's rent for free when you may not even have to!

              Advertise and market the FREE lock.
              Yes, you can offer an incentive to those clients that wish to be auto pay, tell them it's a no late fee guarantee!!!

              How about this, sell the locks and offer a free lock to all those that sign up for auto pay.

              Don't put off until tomorrow, what you can do today.

              Comment


              • #8
                Hey Underhill,

                Congratulations and I think your plan sounds great! I do tend to agree with lady5563 about not giving away anything at first except maybe a free lock or a first or second month discount for signing up for autopay. See how it works out for you first and get the outdoor RV and parking spots going ASAP to increase your revenue, if it's already gated in and somewhat available! Best of luck!
                Mark Somers
                Syrasoft Software
                1-800-817-7706 ext 201
                mark@syrasoft.com

                Comment


                • #9
                  If it is like here, the admin fee is for the lock. I want the same lock on all units, if possible. If he is paying what I pay for my ABUS locks they cost him around $14 a piece and no freight. An admin fee, that covers the lock that the tenant keeps, is easier to swallow.
                  "Never let the inmates run the asylum!"

                  Comment


                  • #10
                    before offering a special and giving away free months, I would do something simple. Half off admin fee for auto pay. This way they are still technically paying for the lock, feeling like they are getting a deal and you lose $0 rent.

                    Comment


                    • #11
                      Originally posted by pacnwstorage View Post
                      Underhill, I see you went with the ABUS locks. I guess they finally took care of you. I would go ahead and give the free month with Auto Pay but would have them pay for 1-2 months with that to get the free month. If you do the free month up front then you will invite tenants in that will do the free month and then drag their feet before leaving without paying for any PAY months. Maybe, rent 2 months and get 1 month free and IMO I would MAKE them sign for auto pay. It is pretty much the norm as the industry moves ahead. Also tends to weed out problem tenants ahead of time. Make sure you do not allow ANY outside rentals without proper paperwork for the vehicle/trailer and make sure the names are for who you are renting to and are current. Make sure the admin fee is understood as a fee for the lock but the tenant KEEPS the lock when they leave. Also, make sure you have the proper quality equipment for cutting those locks when needed.
                      Very good advice from an owner!
                      Dave (Woodee) Scott

                      Comment


                      • #12
                        Originally posted by pacnwstorage View Post
                        Underhill, I see you went with the ABUS locks. I guess they finally took care of you. I would go ahead and give the free month with Auto Pay but would have them pay for 1-2 months with that to get the free month. If you do the free month up front then you will invite tenants in that will do the free month and then drag their feet before leaving without paying for any PAY months. Maybe, rent 2 months and get 1 month free and IMO I would MAKE them sign for auto pay. It is pretty much the norm as the industry moves ahead. Also tends to weed out problem tenants ahead of time. Make sure you do not allow ANY outside rentals without proper paperwork for the vehicle/trailer and make sure the names are for who you are renting to and are current. Make sure the admin fee is understood as a fee for the lock but the tenant KEEPS the lock when they leave. Also, make sure you have the proper quality equipment for cutting those locks when needed.
                        Thanks for all the responses! Pac - this started out as a message to you, but you have exceeded the limit and I couldn't send it! I was actually thinking if they pay for 12 months, they'd get one free, but maybe that's too long a period? 6 months possibly?

                        I don't want to charge for the lock - that means I have to charge sales tax and leads to more complications. Pac is right, the locks will cost approx. $14, so I don't think $20 is too harsh for an admin fee.

                        Again, thanks to all who took the time to respond. I appreciate it!

                        Tim

                        Comment


                        • #13
                          Here we do pay 5.5 months for 2 weeks free and pay 11 months for 1 month free. People ask, what is the difference? 5.5 months times 2 is 11 months. The basic neighborhood tenant likes the 5.5 months for 2 weeks free and the business/commercial tenant, that typically stays longer, likes the 11 months for 1 month free because they write 1 check a year and it is done. That also helps us keep track easier because of a 6 month or 12 month nice round numbers time frame. These people are the only ones I send rent reminders to. At time of payment I print out the next invoice for the same payment months down the road, and put in an envelope and write the month on the front that I want to mail it. A September due multi month invoice would be mailed to them in August. I have a set of in and out bins that are labeled for all 12 months and when I pre print the invoice and date the envelope I put the outgoing mail/invoice in the corresponding month bin and at the beginning of each month here I mail those out. I also send another reminder via email half way thru that same month. The email reminder is pre set in the tenants account and sent automatically overnight after the daily close is printed out just after midnight. When that much time goes by tenants can forget about paying the multi month rent payments. On average I send out anywhere between 80-90 reminders each year. All these tenants understand that there is no refunds so they get no refund if they move out early during the multi month discount time frame.

                          If you do the pay 6 months or 12 months scenario, for free time, that means the next due date keeps moving down the road 1 month at a time and therefore the rent is never due on the same month when each payment is made. For a tenant that can be confusing. My method, the due date stays the same month each time.
                          Last edited by pacnwstorage; 27th September 2017, 10:40 AM.
                          "Never let the inmates run the asylum!"

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