Inheriting the Bad With the Good: Dealing With Delinquent Accounts When Purchasing a Self-Storage Facility

May 15, 2024

1 Min Read

When you buy an existing self-storage business, you inherit the good and the bad. The upside? Revenue potential. The problematic? It usually comes in a variety of forms, from deferred maintenance to below-market rental rates. Another challenge a buyer will often face is delinquent tenant accounts. During due diligence, you may find that some renters haven’t paid their bill in months or even years! How do these affect the sale, and how should they be handled? Can you demand resolution from the seller before close? If a past-due tenant gets caught up on your watch, who’s revenue is it? Members of the Self-Storage Talk online community are debating these and other complex questions in this new thread. If you’ve been through an acquisition or are considering one, jump in to read advice and share your own two cents.

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