Is there an auction solution?

rmason

Florida Statutes require a 75-day auction process from providing late notice to auctioning the unit.  On Day 38 of the process, we drill the lock and take pictures.  This is our first time to see what’s in the locker.  We find everything from a full locker to a locker with one or two items in it.  Last week we found a unit with six bags of landscaping stones.  Nice stones . . . but!  This is also the time we lose customer contact, i.e., phones aren’t answered, emails and letters returned.  So, we’re left holding the bag!  Sometimes, we feel like the local land fill.  Looking for solutions if there is one or two.  Someone suggested collecting first and last month’s rent.  Thoughts?

teamcapitola

What's your delinquency % compared to other nearby facilities?  is it significantly higher?

I've been told you can require whatever you want to rent, provided its applied universally and doesn't discriminate against a protected class. 

We could require first last, deposit... along with social security number and credit report.... and then realize that NOBODY will rent with us! 

I guess it depends on how bad your delinquency is versus potentially losing new customers to competitors.

For instance, we started requiring a valid state issued Driver License to rent (no passports or other ID), and while we do lose some business our delinquency % dropped in half! (from 4% average to right around 1.5%) We still have Auctions, but the number of defaulted units is much much lower. 

I do feel your pain; we had a unit at our last Auction that didn't sell...zero bids.. which meant I got to clean it out and take everything to the dump!

rmason

teamcapitola: Our delinquency rate is around .9%.  We have a very aggressive follow up program with calls, texts, emails, and letters.  Also have incorporated a local "third strike letter" for those who like to ride the auction roller coaster but never get to auction.  Third ride on the roller coaster is your last if you go past due on your account.  We don't offer to renew their lease.  Has been successful.

sonyawiprud

rmason said:

teamcapitola: Our delinquency rate is around .9%.  We have a very aggressive follow up program with calls, texts, emails, and letters.  Also have incorporated a local "third strike letter" for those who like to ride the auction roller coaster but never get to auction.  Third ride on the roller coaster is your last if you go past due on your account.  We don't offer to renew their lease.  Has been successful.

We have written in the agreement that we have the right to increase the rent to street rate if a tenant goes default, however my supervisor is too chicken to let me do it to my repeat offenders. I have a tenant with 4 large units, pays me close to $10,000 quarterly, pays at the very last possible second, begs me to stay open late for her to arrive with cash.....cries, and says she'll never let it happen again. We are sick of cutting her locks and processing for auction, we want her out but we feel it will cost us a lot to try and get her to leave, she definitely will not leave in a timely manner. On the other hand, it is $10,000. Stuck!