It's important to have a good understanding of the financials at your self storage facility. But what does that mean, really? Everyone knows that a self storage facility rents out storage units and tenants pay rent. There are more parts to that equation, though. What is the payment schedule like? How long do you wait until taking action on an unpaid account?
In this spotlight, Chad Lundberg answers the question of what billing looks like at his self storage facilities.
Question: "How do you set up billing for your self storage facility?"
Check out the video clip below to hear their answers:
In this Gabfocus Session: Get Smart, we spoke with Chad Lundberg of The Storage Group and Victor Diaz from Stor365. We took the opportunity to hear their suggestions on how to intelligently run a self storage business.
Check out the full Session to dive deeper!
Don't want to watch the clip? Here's what Chad had to say:
Invoices go out probably eight or nine days prior to the following month.
We're on first-of-the-month billing. We do email, preferably. If we do mail out, there is a $2 mail charge fee. Strive to get credit card billing. People can use the credit card and sign up for it, but the credit card might not be good next month or next week to run the payment.
Day two, if something's not paid, they'll start getting email text reminders.
I think next is day four and then day six. They're locked out, and they start the collection process. And then it goes to a lien, and then it could potentially lead to a sale, some several phone calls in between, more text messages, reminders, stuff like that.
I really try to go above and beyond to try to stay and get in contact with my tenants because, ultimately, I don't like the sale aspect of it. I use it if I have to, but I don't really enjoy selling people's property. That's not the joy of my life, and I don't think any—if you like that, you're in the wrong industry, I believe.
You really can't give them any real leeway. There's no grey area. Later on in the process, I can assist a little bit more with waiving a late fee or two or whatever. But you got to stay on 'em because I got bills to pay, and I got mortgages to pay, and you give them an inch, they'll take a mile.
Day two, collections start."
—Chad Lundberg
