Self Storage Income Self Storage Crises and Large Expenses You Need to Know About and Prepare For
Welcome back everybody to the Self Storage Income Podcast! I’m your host, AJ Osborne.
Today we’re talking about the nitty gritty… the unexpected crises and large expenses you absolutely need to be aware of. It’s tough sometimes to imagine the worst case scenario, whether because it makes you cringe or because you simply don’t know what you don’t know. Either case is no excuse to recognize the very real possibility of a storage facility failing.
On this note real quick… if you ever hear anyone say storage is “recession proof”... run away. Self storage has performed extremely well through recessions, however, storage is not (and neither is anything else), “recession proof”. To say self storage is recession resistant… is a much more accurate phrase. So please, don’t think self storage can never fail, because it can.
Now that that’s been said…
I want to share with you in today’s episode some of the things that you need to be thinking about when it comes to the worst case scenario at your storage facility. Just a few examples - we’ve had tenants threaten the lives of our employees, we’ve had unexpected repairs that ended up costing over $50K, we’ve had tenants that end up coming under investigation for murder and our team having to coordinate with law enforcement… I could go on and on.
To help shed some light on these unfortunate events, I wanted to cover some of these crises and large expenses so that you can be sure to know what to look for, and so that you can have solid standard operating procedures for yourself and your team to handle these situations.
All in all, we need to realize that bad things can and will happen at some point or another and we need to be prepared financially and mentally for those challenges.
Thanks for tuning in, I’ll see you next time!
AJ
Be sure to go to Selfstorageincome.com to get your copy of my Self Storage Playbook. This step by step playbook walks you through from start to finish - how to identify a self storage market, how to perform due diligence, how to contact a current owner, and ultimately how to land a deal and purchase a storage facility.
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The Self Storage Income Podcast is Sponsored by:
Janus International - https://www.janusintl.com/
Store Local - https://www.selfstorage.coop/aws/SL/pt/sp/home_page
Live Oak Bank - liveoakbank.com/incomepodcast