Biggest Threats in 2021

[Amy_ISS]

What would you say will be the top threats to your business in 2021? Is it keeping up occupancy, passing on rental increases, delinquencies or bankruptcies, new competition? What challenges do you think are coming your way?

[pacnwstorage]

But remember, the bad economy in 2008 to 2016 was a boom to the self storage industry. Nothing brings families together like no jobs and having to co-habitat.

[Grizz]

I see the biggest challenges for 2021 being the govt intervention into everything...

[KrisinWA]

I feel crime is going to get worse-including crime at the self storage facilities. There has been multiple break-ins at facilities locally. Local govt's are going soft on crime and with the economy as bad as it is, it only exacerbates the desperation for easy money and knowing they won't get anything but a slap on the wrist.

[pacnwstorage]

I have been preaching the crime problem for years on here. That is why it is so important to screen all prospective tenants and keep the turds out. Plus, the government is in the way and very soft on crime and too many people elect these idiots and help cause the problem. You "reap what you sow".

[rg5090]

I think if the pandemic gets better it might make less people to rent.

[Storman]

I'm in CA, and I'm a little worried everybody will leave our once beautiful state and there won't be anybody left to rent units to. Newsom and his ilk are doing everything possible to chase people and businesses away from California, and I'm afraid it's working even better than they hoped.


I wish I could dig my facility out of the ground and move it to another state.

[pacnwstorage]

I'm in CA, and I'm a little worried everybody will leave our once beautiful state and there won't be anybody left to rent units to. Newsom and his ilk are doing everything possible to chase people and businesses away from California, and I'm afraid it's working even better than they hoped.


I wish I could dig my facility out of the ground and move it to another state.

The states that are doing the same thing are also ran by the same ilk. And yet, idiots keep voting them in. As I said, "you reap what you sow".

[RandyL]

I'm in CA, and I'm a little worried everybody will leave our once beautiful state and there won't be anybody left to rent units to. Newsom and his ilk are doing everything possible to chase people and businesses away from California, and I'm afraid it's working even better than they hoped.


I wish I could dig my facility out of the ground and move it to another state.

Why not sell it and do a tax free exchange into a property in another state?

My biggest fears for 2021, will probably Climate controlled occupancy. We have lots of new competition for this type of storage in my city. We will have to start giving larger discounts to attract tenants for this type of storage.

We were the very first climate controlled facility in my city in 2003, In the last 2 years sqft of climate controlled storage has increased 10 times. Luckily I a old and established. Some of these new players may have issues I wont have to deal with.

I am also fighting the city government in at one of my locations. They are rezoning the entire city, and wish to turn my industrial property to residential zoned making my property non conforming. Which I will not let happen. They don't like self storage in this town they are trying to turn 12 facilities that currently conform to their zoning into non conforming properties. I have a feeling we may have a lawsuit against the city before the end of the year.

[dakselfstorage]

But remember, the bad economy in 2008 to 2016 was a boom to the self storage industry. Nothing brings families together like no jobs and having to co-habitat.

Pacnwstorage,

That was not the case in our area in 2008. We dropped to 60% occupancy and I had to use credit cards to pay bills. It did not really hit until 2009.
I had tenants saying they needed to cut costs. One even said they were going to move stuff to their Aunts basement even though it always floods.
2010 finally started to get back to profit again.

[dakselfstorage]

I am also fighting the city government in at one of my locations. They are rezoning the entire city, and wish to turn my industrial property to residential zoned making my property non conforming. Which I will not let happen. They don't like self storage in this town they are trying to turn 12 facilities that currently conform to their zoning into non conforming properties. I have a feeling we may have a lawsuit against the city before the end of the year.

OMG! How could you not be Grandfathered?
That seems way over the top.

[RandyL]

OMG! How could you not be Grandfathered?
That seems way over the top.

Well you are kinda grand fathered in, they will allow to continue under current conditions. But if there is ever a disaster, storm, fire, flood etc. that damages a building to 50% or more of the reconstruction cost it would not be allowed to be rebuilt unless it conforms with the new zoning.

Our community just had a major disaster on August 10th where a 40 mile x 100 mile area was hit with 140 mph sustained winds. My facilities along with just about every property had damage. So this recent event really brought home, what could happen if this change goes through.

[dakselfstorage]

Randy, That really stinks. Let's all hope for zero damage and keep on renting units.

[AngelaESSTX]

I'm in CA, and I'm a little worried everybody will leave our once beautiful state and there won't be anybody left to rent units to. Newsom and his ilk are doing everything possible to chase people and businesses away from California, and I'm afraid it's working even better than they hoped.


I wish I could dig my facility out of the ground and move it to another state.

A lot of folks are coming here to Texas from Cali. As long as they come in quietly and don't touch nothin, I'm ok with it so far

[pacnwstorage]

A lot of folks are coming here to Texas from Cali. As long as they come in quietly and don't touch nothin, I'm ok with it so far

Just wait. The taxes and government they are running from will be contaminated by them soon. The entitlement people are all over Austin as you well know.