Watch out for the writing on the wall – Part 2

Self Storage Investing - Red Flag

In part 1 of this blog, we talked about some “writing on the wall” that you should be looking for before entering into business at a new facility. There were a few more on that list that we wanted you to be on the lookout for! Check them out:

Recent Rent Increase

If the seller has increased the rent recently (especially if it hasn’t even taken effect yet), put on the brakes. Why? Well, people tend to balk at rent increases and there will be some who will cancel their leases over it. If a seller is trapping you with a rent increase, they may be setting you up for lots of vacant units!

Recent Pavement Seal-Coating

This isn’t to say that there is anything wrong with having the pavement sealed, especially to protect it during the winter, there is danger in the fact that it could be used to cover up paving problems. Look carefully and be sure to ask what the condition was before the recent touchup was done.

Graffiti Cover-Up

When people think of self storage, they should think safety and security for the things being stored inside. Signs of graffiti may be a signal that the security in the neighborhood is questionable. Now, owners aren’t just going to leave graffiti everywhere, but rather they are going to try to cover it up. You should be looking for neutral paint that has attempted to mask it. Don’t see any on the facility itself? Look around the neighborhood. Is it everywhere else? That may not be a deal breaker, but you should still be aware so you know what kind of security you are going to need to have in place if you decided to go through with it.

Manage Dodges Questions

If a manager is evasive or gets upset with the questions you ask, that is another red flag! You have the right to turn over every stone and there should be no subject that is taboo. If the facility is doing well and if there is nothing to hide, the manager should be at ease in speaking to you.

Follow Your Gut

The mind is still superior to a computer. If your mind and subconscious is telling you that you should run the other way, even if everything APPEARS to be fine, then run!

Three are so many great self storage facility deals out there. Don’t jump the gun and settle for something that isn’t quite right. Watch for the writing on the wall and raised red flags!

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