Ask the Waldmans
|Copyright 2014 by Virgo Publishing.|
|Posted on: 09/01/1997|
Ask the Waldmans
With Stanley and Jill Waldman
Should I Prorate the Rent?
Dear Waldmans: My self-storage facility is located in a college town, which means that we rent many units to students during the summer months. Our procedure is to rent units by the month, as that is what our state laws require. If a tenant moves in after the first of the month, we prorate the rent. However, we do not prorate the rent if the tenant moves out early.
One problem I have experienced is that college students
typically move out in the middle of the month and do not want to
pay for an entire month's rent. In the past, I have never given
students a break, but now I am wondering if I am making a
mistake. What should I do?
Dear Bottom Line: Our facility is located in a college town and we, too, have encountered this problem. Every summer, we offer college students a small discount off the monthly rental rate and nothing more. If we were to prorate the rent for all the students who moved out early, we would certainly lose a substantial amount of money. Of course, our rental policies have made some students mad, but rules are rules. One way to alleviate any problems is to explain the rental procedures thoroughly before renting to any college student or prospective tenant. This way, if the student or tenant does not like your rules, he can look elsewhere.
Just for your information, last week, we rented to more college students than we ever have before. Obviously, those few students who did not like our procedures did not affect the other students.
Many times, state law dictates whether to use an anniversary date or a prorate date. If you have the option, we suggest that you use an anniversary date. Anniversary dates allow you to distribute the workload over the entire month rather than at the beginning of the month. Additionally, you will probably receive more late fees as people forget to pay in the middle of the month.
Note: In regard to the "Ask the Waldmans" column in the May issue of Inside Self-Storage, employees or representatives of facilities who are authorized by an insurer to issue certificates or other evidences of insurance within the State of Florida under an insurance policy issued to the lessor should be registered with the Department of Insurance by paying a $50 fee. Upon such registration and approval, a special insurance license will be issued. A facility must have a representative licensed before offering this type of service. For additional information, call the Florida Department of Insurance at (850) 922-3100.